Ga Real Estate Study Guide Questions And Correct Answers

Which term best describes value being attributed to a property because of its desirable location? {Ans: situs (A site is a piece of land that has been enhanced and is ready for a structure. Situs is an area of preference, which can attribute value. Assemblage is the joining of several parcels of land. Plottage is when the property is joined to increase value.)}When the principal terminates the agency relationship before it expires, it is called {Ans: revocation}After deducting $5,100 in closing costs and a 6.5% brokerage fee, the seller netted $175,500. Rounding your answer to the nearest dollar, what was the selling price? {Ans: $193,155 (There are two steps to this problem. First, add the closing costs to the selling price to get the base ($175,500 + $5,100 = $180,600). Now, factor in the broker's commission fee. The Sale Price = 100% and the Commission = 6.5%; thus, net to owner equals 93.5% (100% - 6.5% = 93.5%). Use the seller pricing/net to owner formula: Whole (Total/Gross Sale price) = Part (Net amount + Expenses) / Percent (100% minus deductions), plug in the known variables. Whole = $180,600 / 93.5% or 180,600 / 0.935 = 193,155.08. Rounded,