Free Nebraska Math Practice Test — LicenseIQ

Question 1

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 2

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 3

A rectangular lot is 100 ft by 150 ft. How many square feet is it?

Accepted Answer

Area = length x width = 100 x 150 = 15,000 square feet. (250 is the sum of two sides.)

Question 4

An appointed member of the Nebraska Real Estate Commission serves a term of how long?

Accepted Answer

Appointees serve six-year terms and may serve only one six-year term plus any partial term. Four-year renewable terms are common in other states and are the trap here.

Question 5

Which combination correctly describes the six appointed Commission seats?

Accepted Answer

The Governor appoints one broker from each of the three congressional districts, plus three at-large members: a public member, a salesperson with three years' experience and a broker with five years'.

Question 6

How many members serve on the Nebraska State Real Estate Commission?

Accepted Answer

81-885.07 creates a seven-member Commission: the Secretary of State plus six gubernatorial appointees. Six is the number of appointed members only, a common slip.

Question 7

One discount point equals what percentage of the loan amount?

Accepted Answer

One point = 1% of the loan amount (not the purchase price), paid to lower the interest rate.

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

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 10

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 11

At signing, a broker wants to keep the $3,000 earnest money as an advance on the commission. Which statement is correct?

Accepted Answer

81-885.24(35) bars taking earnest money or other funds as compensation before the transaction closes or terminates.

Question 12

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 13

A salesperson leaves her broker to join another firm. Who must send her license to the Commission right away?

Accepted Answer

81-885.20 requires the employing broker to send the license of a departing salesperson or associate broker to the Commission right away.

Question 14

When the respondent in a Commission complaint is a salesperson, who else must receive a copy of the hearing notice?

Accepted Answer

If the licensee is an associate broker or salesperson, 81-885.25 requires a copy to go to the employing broker at the broker's last-known business address.

Question 15

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 16

Under Commission Policy 42, what must an advertisement marketing an equitable interest clearly state?

Accepted Answer

Policy 42 requires ads for equitable interests to state plainly that an assignable contract is being marketed.

Question 17

The at-large salesperson member of the Commission must have how much experience?

Accepted Answer

The salesperson seat requires at least three years in the business. Five years is the requirement for the broker seats, which is the tempting mix-up.

Question 18

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 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

A licensee earned a $9,400 commission on the transaction that is the subject of a complaint. What is the maximum civil fine for that complaint?

Accepted Answer

81-885.10 caps the fine at the greater of $5,000 or the total commission earned on the transactions tied to the complaint. Here $9,400 exceeds $5,000. Adding the two together ($14,400) is not the rule.

Question 21

When must a licensee give the Commission-approved brokerage disclosure?

Accepted Answer

76-2421 requires disclosure at the earliest practicable opportunity during or after first substantial contact with a party lacking a written agreement with a designated broker.

Question 22

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 23

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 24

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 25

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.

Nebraska real estate math practice test

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

2. 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?

3. A rectangular lot is 100 ft by 150 ft. How many square feet is it?

4. An appointed member of the Nebraska Real Estate Commission serves a term of how long?

5. Which combination correctly describes the six appointed Commission seats?

6. How many members serve on the Nebraska State Real Estate Commission?

7. One discount point equals what percentage of the loan amount?

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

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

11. At signing, a broker wants to keep the $3,000 earnest money as an advance on the commission. Which statement is correct?

12. 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?

13. A salesperson leaves her broker to join another firm. Who must send her license to the Commission right away?

14. When the respondent in a Commission complaint is a salesperson, who else must receive a copy of the hearing notice?

15. 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?

16. Under Commission Policy 42, what must an advertisement marketing an equitable interest clearly state?

17. The at-large salesperson member of the Commission must have how much experience?

18. 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?

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. A licensee earned a $9,400 commission on the transaction that is the subject of a complaint. What is the maximum civil fine for that complaint?

21. When must a licensee give the Commission-approved brokerage disclosure?

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

23. 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:

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

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

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