Free Mississippi Math Practice Test — LicenseIQ

Question 1

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 2

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 3

A commercial space of 2,400 rentable square feet is quoted at $27 per square foot per year. What is the monthly rent?

Accepted Answer

Annual rent = 2,400 x $27 = $64,800; monthly = $64,800 / 12 = $5,400. Commercial rates are quoted per square foot per YEAR.

Question 4

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 5

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 6

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 7

A Mississippi seller refuses to pay a commission earned by a salesperson. Who may sue the seller?

Accepted Answer

§73-35-33 bars a salesperson from suing in his or her own name; the employing broker must sue.

Question 8

How many members serve on the Mississippi Real Estate Commission under current law?

Accepted Answer

§73-35-5 provides for five members: one from each of the three Supreme Court Districts and two at large. Seven or nine are tempting because many other states use larger boards.

Question 9

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 10

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 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

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 13

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 14

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 15

A borrower pays $4,500 for 1.5 discount points. What is the loan amount?

Accepted Answer

Loan = cost of points / points as a percentage = $4,500 / 0.015 = $300,000.

Question 16

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 17

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 18

How are Mississippi Real Estate Commission members distributed geographically?

Accepted Answer

The statute ties three seats to the Supreme Court Districts and makes two at large. Congressional districts are a common distractor borrowed from other states' commissions.

Question 19

Under §73-35-8, when may a default judgment be entered against a nonresident licensee served through the Commission?

Accepted Answer

The statute bars default judgment until 30 days after the certified mailing, supported by an affidavit.

Question 20

Placing a broker's earned commission in the trust account with client funds is:

Accepted Answer

Mixing the broker's own money with client money is commingling under §73-35-21(1)(f). Conversion is using client funds for the broker's purposes.

Question 21

A buyer sues a Mississippi licensee who knowingly failed to disclose the source of square footage information. What can the buyer recover?

Accepted Answer

§73-35-4.1 limits the remedy to actual damages, bars punitive damages and sets a two-year limitation.

Question 22

When a Mississippi licensee gives a buyer the tax assessor's square footage figure, the licensee must:

Accepted Answer

§73-35-4.1 requires identification of the third-party source and imposes no duty to measure; the figure is not a warranty.

Question 23

A Mississippi licensee persuades a buyer to break a pending contract so the licensee can write a new one at a higher commission. This violates:

Accepted Answer

§73-35-21(1)(k) prohibits inducing contract breaches to benefit the licensee.

Question 24

An applicant pled guilty to felony embezzlement 12 years ago. Under §73-35-10, the Commission:

Accepted Answer

Most felonies bar licensure for five years, but felonies involving fraud, dishonesty, breach of trust or money laundering are a bar at any time. The five-year window is the tempting distractor.

Question 25

How long is a regular term for a Mississippi Real Estate Commission member?

Accepted Answer

Regular terms under §73-35-5 are four years. Five and six are tempting because those numbers appear in the members' experience and residency requirements.

Mississippi real estate math practice test

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

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

3. A commercial space of 2,400 rentable square feet is quoted at $27 per square foot per year. What is the monthly rent?

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

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

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

7. A Mississippi seller refuses to pay a commission earned by a salesperson. Who may sue the seller?

8. How many members serve on the Mississippi Real Estate Commission under current law?

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

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

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

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

13. 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?

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

15. A borrower pays $4,500 for 1.5 discount points. What is the loan amount?

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

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

18. How are Mississippi Real Estate Commission members distributed geographically?

19. Under §73-35-8, when may a default judgment be entered against a nonresident licensee served through the Commission?

20. Placing a broker's earned commission in the trust account with client funds is:

21. A buyer sues a Mississippi licensee who knowingly failed to disclose the source of square footage information. What can the buyer recover?

22. When a Mississippi licensee gives a buyer the tax assessor's square footage figure, the licensee must:

23. A Mississippi licensee persuades a buyer to break a pending contract so the licensee can write a new one at a higher commission. This violates:

24. An applicant pled guilty to felony embezzlement 12 years ago. Under §73-35-10, the Commission:

25. How long is a regular term for a Mississippi Real Estate Commission member?

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