Real Estate Math
This is the formula to calculate commission.
What is Sales Price × Commission Rate?
This type of agency allows a broker to represent both buyer and seller with written consent.
What is dual agency?
Ownership of real estate for an unlimited duration is called this.
What is fee simple?
This is the percentage of a home’s value that a borrower finances.
What is loan-to-value (LTV)?
This disclosure is required for properties built before 1978.
What is the Lead-Based Paint Disclosure?
A $320,000 home sells with a 3% commission. This is the total commission earned.
What is $9,600?
This fiduciary duty requires agents to keep client information confidential even after closing.
What is confidentiality?
This is the right to use another person’s land for a specific purpose.
What is an easement?
This federal law requires lenders to provide a Loan Estimate within three business days.
What is TRID?
In Pennsylvania, unless otherwise agreed, this party is responsible for holding the buyer’s earnest money deposit in an escrow account.
Who is the listing broker?
A property assessed at $150,000 in a 20-mill district owes this much in annual tax.
What is $3,000?
In Pennsylvania, this form creates a binding agreement between buyer and seller.
What is the Agreement of Sale (ASR)?
This form of co-ownership includes the right of survivorship and is commonly used by married couples.
What is tenancy by the entirety?
This loan type is guaranteed by the Department of Veterans Affairs.
What is a VA loan?
In Pennsylvania, this written agreement establishes the agency relationship between a broker and a buyer.
What is a Buyer Agency Contract?
A buyer wants 6% seller assist on a $250,000 purchase. This is the maximum credit allowed.
What is $15,000?
This clause protects buyers if they cannot obtain financing.
What is the mortgage contingency?
A private restriction placed on land by a developer is known as this.
What are deed restrictions?
This insurance protects the lender when a borrower puts less than 20% down on a conventional loan.
What is private mortgage insurance (PMI)?
This is the number of years Pennsylvania real estate licenses are valid before renewal.
What is two years?
A property is listed at $400,000 and sells for 5% under list price. This is the sale price.
What is $380,000?
This is the document used to end a real estate contract by mutual consent in PA.
What is the Agreement of Release (AREL)?
This legal doctrine allows someone to acquire ownership of property by openly, continuously, and notoriously occupying it for the statutory period.
What is adverse possession?
This government-backed loan program requires both upfront and annual mortgage insurance premiums.
What is an FHA loan?
An applicant for a Pennsylvania real estate salesperson license must submit their application within this time period after passing the licensing exam.
What is three years?