Free Maine Math Practice Test — LicenseIQ

Question 1

A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

Accepted Answer

At 95% LTV the down payment is 5% of price. Price = $18,000 / 0.05 = $360,000; loan = $342,000.

Question 2

Under an appointed agency policy, who appoints the licensees who will represent a client?

Accepted Answer

Section 13278 provides that the agency, through its designated broker, appoints affiliated licensees in writing to the exclusion of other licensees.

Question 3

A lender approves a $276,000 loan and the buyer wants to keep an 80% LTV. What is the maximum purchase price?

Accepted Answer

Purchase price = loan / LTV = $276,000 / 0.80 = $345,000. ($220,800 wrongly multiplies by 0.80.)

Question 4

An investigator acting for the Commission's Director asks to inspect an agency's trust account records. Where must the records be made available?

Accepted Answer

Section 13178 lets the Director inspect trust accounts and records at the agency's place of business during normal business hours. No subpoena is required, and the agency cannot insist on mailing them to Augusta.

Question 5

What is the minimum forest acreage for classification under Maine's Tree Growth Tax Law?

Accepted Answer

36 M.R.S. §574-B states the law does not apply to parcels with less than 10 acres of forest land.

Question 6

An investor buys a rental house for $350,000; the land is valued at $75,000. Using straight-line depreciation over 27.5 years, the annual depreciation deduction is:

Accepted Answer

Only the building depreciates: $350,000 - $75,000 = $275,000; $275,000 / 27.5 = $10,000. Using the full price gives $12,727 (wrong).

Question 7

A seller says, "Sell it and keep anything over $250,000 as your commission." In Maine this arrangement is:

Accepted Answer

Rule 410 §4 prohibits net listings, defined as keeping all money above a seller's minimum price. Putting it in writing does not cure it.

Question 8

A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?

Accepted Answer

Loan = $275,000 x 0.80 = $220,000; points = $220,000 x 0.025 = $5,500. ($6,875 wrongly applies points to the price.)

Question 9

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 10

On a $250,000 loan, how much is 2 discount points?

Accepted Answer

1 point = 1% of the loan. 2 points = 0.02 x $250,000 = $5,000.

Question 11

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 12

When competing brokerages agree to charge the same commission rate, they commit:

Accepted Answer

Agreeing on commissions among competitors is illegal price fixing under the Sherman Antitrust Act; commissions must be set independently and are always negotiable.

Question 13

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 14

Under Title 30-A, lots of 40 acres or more:

Accepted Answer

Section 4401(4) counts 40-acre lots unless a municipality opts out by ordinance for parcels entirely outside shoreland areas.

Question 15

A deal fails to close after the agency has fully earned its commission. May the agency keep part of the deposit as its fee?

Accepted Answer

Rule 400 §2 bars retaining any part of the deposit for a commission without written authorization from the party charged, even if earned. 'Never' is wrong because written authorization permits it.

Question 16

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 17

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 18

How many members sit on the Maine Real Estate Commission?

Accepted Answer

Section 13062 creates a six-member Commission: four industry members and two public members. Five is a tempting guess if you remember only the industry seats plus one public member.

Question 19

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 20

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 21

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 22

What experience must an industry member of the Commission have?

Accepted Answer

Industry members must have been brokers or associate brokers by vocation in Maine for at least five years. A sales agent license does not qualify, which rules out the two-year option.

Question 23

A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

Accepted Answer

In an exclusive agency listing, the seller pays no commission on a self-sale, but the listing broker is protected if any broker sells it. (Reclassified to section 6 / CORE.)

Question 24

The Commission finds a licensee committed three separate violations. What is the maximum total civil penalty the Commission could impose?

Accepted Answer

The cap is $1,500 per violation, so three violations allow 3 × $1,500 = $4,500. $1,500 would treat the three violations as one.

Question 25

Under the sanction authority the Commission uses, what is the maximum suspension for a single violation?

Accepted Answer

10 M.R.S. §8003(5-A) allows suspension of up to 90 days per violation or instance. Suspensions for separate violations can run consecutively, which is why 180 days is possible only for two violations.

Maine real estate math practice test

1. A lender offers a 95% LTV loan. The buyer has $18,000 for the down payment. What is the maximum purchase price?

2. Under an appointed agency policy, who appoints the licensees who will represent a client?

3. A lender approves a $276,000 loan and the buyer wants to keep an 80% LTV. What is the maximum purchase price?

4. An investigator acting for the Commission's Director asks to inspect an agency's trust account records. Where must the records be made available?

5. What is the minimum forest acreage for classification under Maine's Tree Growth Tax Law?

6. An investor buys a rental house for $350,000; the land is valued at $75,000. Using straight-line depreciation over 27.5 years, the annual depreciation deduction is:

7. A seller says, "Sell it and keep anything over $250,000 as your commission." In Maine this arrangement is:

8. A buyer purchases a $275,000 home with an 80% LTV loan and pays 2.5 discount points. What do the points cost?

9. 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?

10. On a $250,000 loan, how much is 2 discount points?

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

12. When competing brokerages agree to charge the same commission rate, they commit:

13. 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?

14. Under Title 30-A, lots of 40 acres or more:

15. A deal fails to close after the agency has fully earned its commission. May the agency keep part of the deposit as its fee?

16. 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?

17. 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?

18. How many members sit on the Maine Real Estate Commission?

19. 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?

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

21. 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?

22. What experience must an industry member of the Commission have?

23. A listing where the seller may sell themselves without owing commission, but only the listing broker among agents is protected, is:

24. The Commission finds a licensee committed three separate violations. What is the maximum total civil penalty the Commission could impose?

25. Under the sanction authority the Commission uses, what is the maximum suspension for a single violation?

Sources