Free Texas Math Practice Test — LicenseIQ

Question 1

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 2

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 3

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 4

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 5

Annual taxes of $5,400 are paid in arrears at year-end. Closing is June 15, and the seller owns the day of closing. Using a 360-day year, what is the proration?

Accepted Answer

Daily = $5,400 / 360 = $15. Seller owned Jan 1-Jun 15 = 5 months + 15 days = 165 days. 165 x $15 = $2,475. Because the buyer will pay the whole bill later, the seller is debited and the buyer credited.

Question 6

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 7

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 8

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 9

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 10

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 11

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 12

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 13

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 14

What is the maximum acreage of an urban homestead in Texas?

Accepted Answer

§41.002(a) protects up to 10 acres in one or more contiguous lots for an urban homestead, whether for a family or a single adult.

Question 15

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 16

A 50-acre tract is valued at $800,000 and includes a small house valued at $30,000. Must the seller give the §5.008 disclosure?

Accepted Answer

The exemption applies when the value of any dwelling does not exceed 5% of the property's value. 5% x $800,000 = $40,000, and $30,000 is under $40,000 ($30,000 / $800,000 = 3.75%), so the exemption applies.

Question 17

A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

Accepted Answer

In a unilateral contract only one party is bound (to pay if the act is performed); the other party has no obligation to act. Most real estate contracts are bilateral.

Question 18

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 19

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 20

Of the members of the Texas Real Estate Commission, how many must be licensed brokers, and what experience must they have?

Accepted Answer

Six of the nine seats are broker seats, and each broker member must have been engaged primarily in brokerage for the five years preceding appointment. The other three seats are reserved for public members, so all nine cannot be brokers.

Question 21

Under the Texas Fair Housing Act, within how many days after a complaint is filed must the commission generally complete its investigation?

Accepted Answer

§301.083 requires the investigation to be completed within 100 days unless impracticable. Administrative proceedings must be disposed of within one year.

Question 22

A broker sues a seller for a commission based on an oral listing agreement. What is the most likely result?

Accepted Answer

§1101.806(c) bars an action to recover a commission unless the promise is in writing and signed by the party against whom the action is brought, or that party's authorized signer.

Question 23

How many members serve on the Texas Real Estate Commission?

Accepted Answer

TRELA provides for nine governor-appointed members: six licensed brokers and three public members. Six is tempting because it is the number of broker seats, not the total.

Question 24

A married couple's rural homestead may include up to how many acres?

Accepted Answer

A family's rural homestead may be up to 200 acres. A single adult's rural homestead is limited to 100 acres.

Question 25

A single adult with no family claims a rural homestead on 160 acres. How many acres are protected?

Accepted Answer

A single adult's rural homestead is capped at 100 acres. The other 60 acres (160 - 100) are not protected as homestead.

Texas real estate math practice test

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

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

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

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

5. Annual taxes of $5,400 are paid in arrears at year-end. Closing is June 15, and the seller owns the day of closing. Using a 360-day year, what is the proration?

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

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

8. 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?

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

10. 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?

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

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

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

14. What is the maximum acreage of an urban homestead in Texas?

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

16. A 50-acre tract is valued at $800,000 and includes a small house valued at $30,000. Must the seller give the §5.008 disclosure?

17. A seller says, 'I will pay any broker a 5% commission if they bring me a buyer.' This promise creates a(n):

18. 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?

19. 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?

20. Of the members of the Texas Real Estate Commission, how many must be licensed brokers, and what experience must they have?

21. Under the Texas Fair Housing Act, within how many days after a complaint is filed must the commission generally complete its investigation?

22. A broker sues a seller for a commission based on an oral listing agreement. What is the most likely result?

23. How many members serve on the Texas Real Estate Commission?

24. A married couple's rural homestead may include up to how many acres?

25. A single adult with no family claims a rural homestead on 160 acres. How many acres are protected?

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