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Florida Real Estate
Ch 14 Computations and Title Closing
12
Real Estate & Planning
Not Applicable
01/18/2012

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Cards

Term
Profit
Definition
Amount made over and above cost.
Profit or loss on sale/Total Cost = Percent Profit or Loss.
Term
Mortgage Amortization
Definition
Regular, Equal payments that include P&I.
AKA Level Payment Plan
Term
Mortgage Amortization Steps
Definition
1) Principal Balance * Annual Interest / 12 = First Months Interest
2)Monthly Mortgage Payment - First Month's Interest = Payment on Principal
3) Beginning Principal Balance - Principal Payment = New Principal Balance.
Repeat
Term
Pre-Closing Steps
Definition
Mortgage Application
Survey
Appraisal
Title Insurance
Closing Documents
Property Inspections
Pre-Closing Inspection
Term
Closing Statement
Definition
Accurate accounting and delivery of all monies, deposits, drafts, mortgages, conveyances, leases or other documents plus a summary of all debits and credits involved.
Term
Prorated Expenses
Definition
Divide various charges adn credits between buyer and seller.
Term
Proration 30 Day Method
Definition
Based on Statutory Month Method. All Months have 30 days and 360 days in the year.
Day costs = Cost of item/12/30
Term
Prporation 365 Day Method
Definition
Actual Number of days in proration period.
Daily costs = Costs / number of days
Term
Proration Taxes
Definition
Taxes are paid in arrears (at the end of the year)
Therefore, debit seller number of days on property and credit buyer for those days. Remember, taxes will be paid at the end of the year.
Term
State Transfer Taxes
Definition
State Documentary Stamp Tax on Deeds(Debit Seller) $.70/$100 on the full purchase price.
State Documentary Stamp Tax on Notes (Debit Buyer) $.35/$100 on all executed notes and promises.
State Intangible on New Mortgages (Debit Buyer) $.002/$1 On new mortgages.
Term
Document Preparation
Definition
Seller (Grantor) - Deed
Buyer (Mortgagor) - Mortgage and Note.
Term
Recording Fee
Definition
Buyer (Grantee) - Deed Recording
Seller (Grantor) - Deed Prep
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