Commission
Commission = sale price × commission rate. Example: $400,000 × 0.05 = $20,000 total commission. If an exam gives a 50/50 split, each share is $10,000. Rates and splits are examples, not standard fees or required rates.
Proration
Daily amount = annual charge ÷ the day-count basis specified in the question. Example: $3,600 annual tax on a 360-day basis is $10 per day; 90 days is $900. On a 365-day basis the daily amount differs. Use the question’s ownership-date convention and whether the charge is prepaid or paid in arrears to decide the credit/debit.
Loan-to-value
LTV = loan ÷ property value × 100. Example: $240,000 ÷ $300,000 × 100 = 80%. Required loan = value × target LTV: $300,000 × 0.80 = $240,000. Ignore closing costs unless the problem includes them.
Area
Rectangle area = length × width. A 120 ft × 150 ft lot is 18,000 square feet. One acre = 43,560 square feet, so 18,000 ÷ 43,560 ≈ 0.413 acres. Triangle area = base × height ÷ 2.
Capitalization
Value = net operating income ÷ capitalization rate. Example: $24,000 annual NOI ÷ 0.08 = $300,000. Cap rate = NOI ÷ value. Use operating income after operating expenses, before debt service, unless the question explicitly defines otherwise.
Check your work
Convert percentages to decimals, align annual/monthly/daily periods and label units. Estimate the order of magnitude before choosing an answer. Exam-specific conventions in the handbook or question control.
Independent study guidance, not legal advice. Verify current requirements with your regulator.