Free Alaska Math Practice Test — LicenseIQ

Question 1

When a salesperson asks to transfer, the terminating broker must send the termination form to the Commission within:

Accepted Answer

12 AAC 64.075(b) requires the terminating broker to complete and send the form within five days. Fifteen days is the licensee's reporting deadline; 30 days is the interim work period.

Question 2

A house with only one bathroom and very small closets in a market expecting more suffers from:

Accepted Answer

Functional obsolescence is outdated design or layout inside the property. External obsolescence comes from outside the property and is usually incurable.

Question 3

A home sells for $400,000 with a 5% total commission. What is the total commission?

Accepted Answer

$400,000 x 0.05 = $20,000.

Question 4

The maximum civil penalty the Commission may levy for each offense of unlicensed real estate activity is:

Accepted Answer

AS 08.88.167(b) caps the penalty at the greater of $5,000 or the gain realized plus $5,000. A flat $5,000 ignores the gain-based alternative.

Question 5

Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

Accepted Answer

Article 17 requires REALTORS to mediate or arbitrate contractual and specific non-contractual disputes with other REALTORS through the association.

Question 6

On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

Accepted Answer

$20,000 x 0.50 = $10,000 to the buyer's broker.

Question 7

A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $6,000 / $150,000 = 0.04 = 4%.

Question 8

A new highway interchange built next to a residential subdivision lowers home values. This is:

Accepted Answer

Loss in value caused by factors outside the property boundaries is external obsolescence.

Question 9

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 10

When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

Accepted Answer

Designated agency assigns separate agents within one brokerage; the broker is still a dual agent and written consent is required.

Question 11

An unlicensed person earned $8,000 by brokering two Alaska home sales (one offense each, $4,000 gain each). What is the maximum total civil penalty the Commission could levy?

Accepted Answer

For each offense the cap is the greater of $5,000 or gain plus $5,000. Gain plus $5,000 is $9,000 per offense, so two offenses total $18,000. $10,000 uses only the flat $5,000 per offense.

Question 12

A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?

Accepted Answer

LTV = loan / price = $361,250 / $425,000 = 0.85 = 85%. (15% is the down payment percentage.)

Question 13

A buyer purchases a $300,000 home with a $60,000 down payment. What is the loan-to-value (LTV) ratio?

Accepted Answer

Loan = $300,000 - $60,000 = $240,000; $240,000 / $300,000 = 80% LTV. (20% is the down payment percentage.)

Question 14

An Alaska broker must register an office or branch with the Commission:

Accepted Answer

12 AAC 64.110(e) and 12 AAC 64.120(a) require registration before operating any office or branch.

Question 15

When must a licensee give a consumer the Commission's Consumer Disclosure pamphlet?

Accepted Answer

AS 08.88.615(a)(6) and 12 AAC 64.118 require the pamphlet before specific assistance or entering a contract for it. The offer is the point for the Licensee Relationships statement.

Question 16

A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

Accepted Answer

Commission = $389,000 x 0.05 = $19,450. Total costs = $19,450 + $212,600 + $1,200 + $1,950 + $600 = $235,800. Net = $389,000 - $235,800 = $153,200.

Question 17

A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

Accepted Answer

Points = cost / loan = $3,150 / $210,000 = 0.015 = 1.5 points (1 point = 1% of the loan).

Question 18

An 8-unit building rents for $1,100 per unit per month with 5% vacancy. Annual operating expenses are $28,320 (excluding debt service). At an 8% capitalization rate, what is the value?

Accepted Answer

PGI = 8 x $1,100 x 12 = $105,600; less 5% vacancy = $100,320; NOI = $100,320 - $28,320 = $72,000; value = $72,000 / 0.08 = $900,000.

Question 19

The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

Accepted Answer

Daily rent = $1,800 / 30 = $60. Buyer owns days 11-30 = 20 days. 20 x $60 = $1,200, credited to the buyer because the seller collected rent for days the buyer will own.

Question 20

How many members serve on the Alaska Real Estate Commission?

Accepted Answer

AS 08.88.011 sets the Commission at seven members. Five is tempting because five of the seats go to brokers or associate brokers, but that is a subset of the seven.

Question 21

A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

Accepted Answer

Total = $520,000 x 0.05 = $26,000. Buyer broker gets 2.5% = $13,000, leaving $13,000 for the listing side. Salesperson = $13,000 x 0.60 = $7,800.

Question 22

A property manager keeps tenants' security deposits in the owner's personal checking account. Under Commission regulations, this is treated as:

Accepted Answer

12 AAC 64.560 states that failing to hold prepaid rent or security deposits in a trust account as AS 34.03 requires is fraudulent or dishonest conduct under AS 08.88.071(a)(3)(A)(iv). Owner consent does not cure it.

Question 23

After the Recovery Fund pays a claim based on a licensee's conduct, the Commission:

Accepted Answer

AS 08.88.071(b) lets the Commission suspend the license; the suspension lifts when the licensee agrees to repayment and completes required education. Revocation is not automatic.

Question 24

A sale closes on March 20. What is the last day the broker may withdraw the commission from trust under the 15-day rule?

Accepted Answer

March 20 plus 15 days is April 4 (11 remaining days in March plus 4 in April). April 19 would be 30 days.

Question 25

How many public members sit on the Alaska Real Estate Commission?

Accepted Answer

AS 08.88.041 requires two public members alongside five brokers or associate brokers. Five is the industry count, not the public count.

Alaska real estate math practice test

1. When a salesperson asks to transfer, the terminating broker must send the termination form to the Commission within:

2. A house with only one bathroom and very small closets in a market expecting more suffers from:

3. A home sells for $400,000 with a 5% total commission. What is the total commission?

4. The maximum civil penalty the Commission may levy for each offense of unlicensed real estate activity is:

5. Under the Code of Ethics, commission disputes between REALTORS associated with different firms are generally resolved through:

6. On the $20,000 commission above, the listing broker keeps 50% and pays 50% to the buyer's broker. How much does the buyer's broker receive?

7. A salesperson earns $6,000 on a $150,000 sale. What was the commission rate?

8. A new highway interchange built next to a residential subdivision lowers home values. This is:

9. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

10. When a broker appoints one salesperson to represent the seller and another salesperson in the same office to represent the buyer, this is:

11. An unlicensed person earned $8,000 by brokering two Alaska home sales (one offense each, $4,000 gain each). What is the maximum total civil penalty the Commission could levy?

12. A buyer purchases a home for $425,000 with a loan of $361,250. What is the LTV?

13. A buyer purchases a $300,000 home with a $60,000 down payment. What is the loan-to-value (LTV) ratio?

14. An Alaska broker must register an office or branch with the Commission:

15. When must a licensee give a consumer the Commission's Consumer Disclosure pamphlet?

16. A home sells for $389,000. The seller pays a 5% commission, a $212,600 mortgage payoff, $1,200 attorney fee, $1,950 transfer tax and $600 in other costs. What are the seller's net proceeds?

17. A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

18. An 8-unit building rents for $1,100 per unit per month with 5% vacancy. Annual operating expenses are $28,320 (excluding debt service). At an 8% capitalization rate, what is the value?

19. The seller of a rental property collected $1,800 rent for the month on the 1st. Closing is on the 10th, and the seller owns the day of closing (30-day month). What is the rent proration?

20. How many members serve on the Alaska Real Estate Commission?

21. A home sells for $520,000 with a 5% commission. The listing broker pays 2.5% to the buyer's broker and splits the listing side 60/40 with the listing salesperson (salesperson gets 60%). How much does the listing salesperson earn?

22. A property manager keeps tenants' security deposits in the owner's personal checking account. Under Commission regulations, this is treated as:

23. After the Recovery Fund pays a claim based on a licensee's conduct, the Commission:

24. A sale closes on March 20. What is the last day the broker may withdraw the commission from trust under the 15-day rule?

25. How many public members sit on the Alaska Real Estate Commission?

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