Real Estate Math
An Illinois seller owes $185,000 on their mortgage. The property sells for $310,000. After paying a 5% commission and $4,200 in other closing costs, what are the seller's net proceeds?
A$105,300✓ Correct
B$120,300
C$109,500
D$105,800
Explanation
Commission = $310,000 × 0.05 = $15,500. Total deductions = $185,000 (mortgage) + $15,500 (commission) + $4,200 (other costs) = $204,700. Net proceeds = $310,000 - $204,700 = $105,300. This net proceeds calculation is a frequently tested Illinois exam math problem. The seller pays off their existing mortgage from the sale proceeds at closing.
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