A house sells for $580,000. Property tax (Prop 13 base rate of 1%) plus $800 in special assessments. What is the first year's total property tax bill?
Why $6,600 Is Correct
Answer C: $6,600
Exam Tip: Real Estate Math
Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.
People Also Study
Related California Questions
- A house is purchased in California for $750,000. Under Prop 13, the base property tax rate is 1%. What is the maximum annual base property tax?Real Estate Math
- A home sells for $450,000. The commission rate is 6%. How much is the total commission?Real Estate Math
- A property sells for $450,000. The commission rate is 6%. What is the total commission?Real Estate Math
- A property sells for $450,000. The commission rate is 5.5%. What is the total commission?Real Estate Math
Key Terms to Know
The gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Study This Topic
Practice More California Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free California Quiz →