My instructor did not tell me all this 360/ 30, just told me 365 equation, and that is how I answered this question for my previous exam, and I exactly saw this question in Illinois real estate exam. Thanks, I discover a lot of information here in this channel.
Alternatively, for this problem, you can calculate per diem from the start. 1600 / 360 because 12 months * 30 days each month equals 360 days. The per diem or daily rate is 4.44 repeating. The Seller Credit/Buyer Debit is for 103 days so 103 days * the daily rate of 4.44.
Preparing to take the test for the 2nd time and the way you explain the material is awesome, finally prorations is starting to click (I missed this part horribly the 1st time) I was guessing the whole time
These videos are extremely helpful, thank you! Could you also take the daily amount of $4.44 and multiply it by the amount of days 103 (using the 30 rule)? My answer came out to be slightly different from yours at 457.32
CONGRATULATIONS... well done! The exam is no joke. Only those that put in the hard to to study and prepare pass it. So KUDO's... I wish you the best of luck in your new venture. You will do amazing things! 😁
Great video, filled with so much great information. ... you are an excellent teacher. One small footnote, when your video hit 4 minute 26 second, when you were writing an equation on the white board, (1600 ./. 12), you didn't use the "equal" symbol, (=)l for the answer, you used the division symbol by mistake. But no worries, we all knew you meant to write "equals".
I should have found your video before I paid extra on another video you tuber about the real estate :( ... thank you very much for posting helpful and easy to understand the concept
@@joshuarobinson9695 that is awesome!!!!!!!!!!!! Congrats... that test in NO joke... you have to earn that passing grade... I am so happy for you! Best of luck in your new venture... still with it. It's tuff and the start but once it gets rolling you will crush it!
I will appreciate any help with this one pls. 2 months ago studying 4 state exam, until today, I just can not figure out how 2 calculate days, with my few acknowledge, are we talking about 2nd installment? Here is The daily property tax rate is $1.23 COE is August 32, assuming buyer owns the property on closing day& seller hasn't made any payments, what will the seller owe at closing using calendar year proration method , round 2 the nearest whole dollar? Not clue, thanks 4 the help! Love all your videos, so helpful
I had a question on my test that said some to the effect of Jim was 73ys old and his house was 150k what discounts can he take off his home and what would be his takes on the home is Oct 25 was the purchase day and Nov 12 was the closing day with the Seller being responsible for the closing day? How do you even begin to do this problem?
Just got done with a practice test on PSI and missed this question. On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set for April 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360-day year and a 30-day month
These videos are great but I need some clarification. When calculating the yearly tax does the seller or buyer pay daily rate for the day of closing. In your first example the daily rate for the HOA was the buyers responsibility. Please advise
Also what suggestions of videos of yours would you mainly recommend me to watch because I take the tests again next Thursday and this is my 4 or 5th time but I was 6 points away the last time but I know I could use more for finance and general principles of agency
More study materials at TheRealEstateClassroom.com
My instructor did not tell me all this 360/ 30, just told me 365 equation, and that is how I answered this question for my previous exam, and I exactly saw this question in Illinois real estate exam. Thanks, I discover a lot of information here in this channel.
@@osmanmoomin8501 Right on... really glad I could I could help! ..
I've watched at least a dozen videos explaining prorations and this is the first one where it finally "clicked" for me. Much thanks!
Glad to hear... thank you for leaving a comment!
Me too!!! Thank goodness
Alternatively, for this problem, you can calculate per diem from the start. 1600 / 360 because 12 months * 30 days each month equals 360 days. The per diem or daily rate is 4.44 repeating. The Seller Credit/Buyer Debit is for 103 days so 103 days * the daily rate of 4.44.
Paul, you're such a blessing! I'm grateful that I stumble across your videos. I passed my exam yesterday and I owe it all to you! Thank you!
Thank you, Jessica! Congrats on passing the exam. That test is NO joke.... Best of luck and thanks for letting us know :o)
Preparing to take the test for the 2nd time and the way you explain the material is awesome, finally prorations is starting to click (I missed this part horribly the 1st time) I was guessing the whole time
I hear this a lot... that's why I did this video.... Keep at it and you will pass the exam! :o)
These videos are extremely helpful, thank you! Could you also take the daily amount of $4.44 and multiply it by the amount of days 103 (using the 30 rule)? My answer came out to be slightly different from yours at 457.32
After re-watching the video I got that as well.
Love the way you teach well said, I passed my California license exam thank u good sir
CONGRATULATIONS... well done! The exam is no joke. Only those that put in the hard to to study and prepare pass it. So KUDO's... I wish you the best of luck in your new venture. You will do amazing things! 😁
This was so helpful! Thank you for break down credits and debits
Thank you.... and thanks for taking time to drop us a comment... much appreciated
Amazing way to explain. Thank you
You're welcome
Great video, filled with so much great information.
... you are an excellent teacher. One small footnote, when your video hit 4 minute 26 second, when you were writing an equation on the white board, (1600 ./. 12), you didn't use the "equal" symbol, (=)l for the answer, you used the division symbol by mistake. But no worries, we all knew you meant to write "equals".
Thank you for letting me know.... I will go and take a look at it.... :o)
Omg thank you so much in understanding this . I have figured out most of what goes in to a closing except this concept .
Thank you for making it concise to be duplicated well.
You're welcome!
Thanks so much...you explain things so well!📝✅
You're welcome!
Thank you for explaining!!
You're welcome!
I should have found your video before I paid extra on another video you tuber about the real estate :( ... thank you very much for posting helpful and easy to understand the concept
Glad it was helpful!
Thank you for this! It makes more sense now!
Your welcome.... glad we could help! 😁
FINALLY someone explains- TY
You're welcome!
Awesome video, thank you Paul
Thank you, Stephanie. I appreciate your comment.
Great Video!
Thank you!
On a scale from 1 to 10, how many days long is a Lunar pro-rated month?
So helpful!
Thank you
@@TheRealEstateClassroom PASSED!
@@joshuarobinson9695 that is awesome!!!!!!!!!!!! Congrats... that test in NO joke... you have to earn that passing grade... I am so happy for you! Best of luck in your new venture... still with it. It's tuff and the start but once it gets rolling you will crush it!
@@TheRealEstateClassroom hey thanks man the math definitely helped!
What if the taxes had NOT been paid yet. Would the credit/debit just switched?
yes
Thank you so much!
Hi Danie V.... thank you for your comment. We appreciate it. Best of luck on your exam! :o)
I will appreciate any help with this one pls. 2 months ago studying 4 state exam, until today, I just can not figure out how 2 calculate days, with my few acknowledge, are we talking about 2nd installment?
Here is
The daily property tax rate is $1.23 COE is August 32, assuming buyer owns the property on closing day& seller hasn't made any payments, what will the seller owe at closing using calendar year proration method , round 2 the nearest whole dollar?
Not clue, thanks 4 the help!
Love all your videos, so helpful
I had a question on my test that said some to the effect of Jim was 73ys old and his house was 150k what discounts can he take off his home and what would be his takes on the home is Oct 25 was the purchase day and Nov 12 was the closing day with the Seller being responsible for the closing day? How do you even begin to do this problem?
So will the exam let us know whether to calculate using the 360 method or the 365 method?
Yes
Can you please tell me how I know if its paid in arrears ?
The test question will tell you whether it's paid in arrears or not EXCEPT for mortgage payments (P & I) it's always assumed it paid in arrears
Just got done with a practice test on PSI and missed this question.
On February 1, a seller paid $1,140 in annual property tax for the current calendar year. He sold the house with the closing set for April 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360-day year and a 30-day month
9 months x $95 = 855
why would we not count January as well if the taxes were paid in February for the year, making it 10 months? @@wilcoxtactical3716
These videos are great but I need some clarification. When calculating the yearly tax does the seller or buyer pay daily rate for the day of closing. In your first example the daily rate for the HOA was the buyers responsibility. Please advise
The test question will always tell you who is responsible for the day of closing whether it's a debt or credit question
i had 3 questions on the 360 day method but it was nothing like this. it asked about insurance and i was so lost i missed all 3
Thank you. :)
Welcome!
Thanks!
Home for sale close to rail line owner need for disclosure rail line or don’t need please answer thank you
That would depend on your specific state law. Some states do require such disclosure but others do not.
So what if the taxes haven’t been paid in advance would you still solve the same way?
Also what suggestions of videos of yours would you mainly recommend me to watch because I take the tests again next Thursday and this is my 4 or 5th time but I was 6 points away the last time but I know I could use more for finance and general principles of agency
Taxes paid in advance will end up being a credit to the seller and a debt to the buyer at closing
Thank you
Couldn't you have subtract 17 from 30?
Why not 16 days if closing is 17th?
OR 17 days since seller responsible?
Pro