FRECI_14-3 - Lecture Preview Florida Real Estate Commission...

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1 Florida Real Estate Commission Course I Pre-Licensing Course for Sales Associates Session 14 – Lecture 3 Real Estate Computations and Closing of Transactions Copyright, 2005 2 Lecture Preview What will you learn from this lecture? Calculate a rent proration Discuss how to handle a rent deposit Calculate a prepaid interest proration Copyright, 2005 3 Vocabulary Terms None! Copyright, 2005 4 Rental Payments Normally paid in advance by the tenant Usually a debit to the seller and credit to the buyer April 1 st 30 th Rent paid Closing date 17th The seller will owe the buyer for advance rent up to the end of the month 5 Prepaid Rent Proration April 1 st 30 th 17th Rent: $325 per month Closing date: April 17 th Closing day belongs to the buyer Calculate the rent proration. Who is debited, who is credited? $325 Closing date Rent paid $325 ÷ 30 = $10.83 Daily rent $10.83 x 14 = $151.62 Debit Seller Credit Buyer Copyright, 2005
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This note was uploaded on 05/21/2011 for the course FREC 1000 taught by Professor Stallone during the Spring '08 term at University of Florida.

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FRECI_14-3 - Lecture Preview Florida Real Estate Commission...

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