Free Georgia Math Practice Test — LicenseIQ

Question 1

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 2

A homestead has FMV of $300,000 and the millage rate is 30 mills. With only the $2,000 standard exemption, what is the tax?

Accepted Answer

$300,000 x 0.40 = $120,000; minus $2,000 = $118,000; x 0.030 = $3,540. $3,600 ignores the exemption, and $8,940 applies the exemption to FMV and skips the 40% step.

Question 3

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 4

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 5

A broker received a 4.2% commission totaling $12,600. What was the sale price?

Accepted Answer

Sale price = commission / rate = $12,600 / 0.042 = $300,000.

Question 6

A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

Accepted Answer

Net + other costs = $256,000, which equals 94% of the price (100% - 6%). Price = $256,000 / 0.94 = $272,340.43, about $272,340. Adding 6% to $256,000 ($271,360) understates the price.

Question 7

How many members serve on the Georgia Real Estate Commission?

Accepted Answer

O.C.G.A. §43-40-2 creates a six-member commission: five licensees with at least five years of experience and one consumer-oriented public member. Five is the number of industry seats, which is why it tempts test-takers.

Question 8

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 9

The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

Accepted Answer

Daily = $4,320 / 360 = $12. Seller owned Jan 1-Apr 20 = 3 months + 20 days = 110 days, so the buyer owes for 360 - 110 = 250 days. 250 x $12 = $3,000, credited to the seller (who prepaid) and debited to the buyer.

Question 10

When a broker properly appoints separate designated agents for the buyer and seller in the same transaction, the firm is:

Accepted Answer

Section 10-6A-13(b) states that a broker who properly designates agents is not considered a dual agent.

Question 11

An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

Accepted Answer

Cap rate = NOI / value = $63,000 / $900,000 = 0.07 = 7%.

Question 12

A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

Accepted Answer

LTV is applied to the LESSER of price or appraised value: $290,000 x 0.75 = $217,500. Using the $300,000 price ($225,000) is the common mistake.

Question 13

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 14

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 15

A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?

Accepted Answer

Area = (40 x 30) + (20 x 15) = 1,200 + 300 = 1,500 sq ft; 1,500 x $185 = $277,500.

Question 16

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 17

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 18

Under an open listing, the seller owes a commission to:

Accepted Answer

Open listings are non-exclusive; only the procuring broker is paid, and the owner owes nothing for a self-sale.

Question 19

A rectangular parcel measures 330 feet by 660 feet. How many acres does it contain?

Accepted Answer

Area = 330 x 660 = 217,800 sq ft; 217,800 / 43,560 = 5 acres.

Question 20

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 21

Annual taxes are $3,650. Using a 365-day year, what is the daily proration amount?

Accepted Answer

$3,650 / 365 = $10 per day. (The course's default convention is a 360-day year; this question specifies 365.)

Question 22

A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

Accepted Answer

Rate = commission / sale price = $15,750 / $450,000 = 0.035 = 3.5%.

Question 23

A Georgia home has FMV of $250,000. The owner receives the $2,000 standard exemption and a $10,000 local homestead exemption. The millage rate is 28 mills. What is the annual tax?

Accepted Answer

Assessed value = $250,000 x 0.40 = $100,000. Less $12,000 in exemptions = $88,000. Tax = $88,000 x 0.028 = $2,464. $2,800 ignores both exemptions.

Question 24

When may a broker apply earnest money toward its commission?

Accepted Answer

Section 43-40-20(e) bars taking trust funds as commission until the transaction is consummated or terminated.

Question 25

A broker refuses to release a departing salesperson's license because they disagree over a commission split. Under GREC rules, this is:

Accepted Answer

Rule 520-1-.07(5) states that disputes over compensation are not grounds for refusing a release. The broker's remedy is civil.

Georgia real estate math practice test

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

2. A homestead has FMV of $300,000 and the millage rate is 30 mills. With only the $2,000 standard exemption, what is the tax?

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

4. 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?

5. A broker received a 4.2% commission totaling $12,600. What was the sale price?

6. A seller wants to net $250,000 after paying a 6% commission and $6,000 in other closing costs. To the nearest dollar, what must the sale price be?

7. How many members serve on the Georgia Real Estate Commission?

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

9. The seller prepaid $4,320 in property taxes for the calendar year. Closing is April 20, and the seller owns the day of closing. Using a 360-day year (30-day months), what is the proration?

10. When a broker properly appoints separate designated agents for the buyer and seller in the same transaction, the firm is:

11. An investment property with NOI of $63,000 sells for $900,000. What is the capitalization rate?

12. A buyer contracts to buy a home for $300,000, but it appraises at $290,000. The lender offers 75% LTV. What is the maximum loan?

13. 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?

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

15. A house is L-shaped: one section is 40 ft by 30 ft and the other is 20 ft by 15 ft. At $185 per square foot, what is the estimated cost to build?

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

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

18. Under an open listing, the seller owes a commission to:

19. A rectangular parcel measures 330 feet by 660 feet. How many acres does it contain?

20. 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?

21. Annual taxes are $3,650. Using a 365-day year, what is the daily proration amount?

22. A broker earned a $15,750 commission on a $450,000 sale. What was the commission rate?

23. A Georgia home has FMV of $250,000. The owner receives the $2,000 standard exemption and a $10,000 local homestead exemption. The millage rate is 28 mills. What is the annual tax?

24. When may a broker apply earnest money toward its commission?

25. A broker refuses to release a departing salesperson's license because they disagree over a commission split. Under GREC rules, this is:

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