Free Virginia Math Practice Test — LicenseIQ

Question 1

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 2

A 275-gallon heating oil tank costs $168 to fill at $4.20 per gallon. The buyer will credit the seller for the oil remaining in the tank. What is the credit?

Accepted Answer

Gallons needed = $168 / $4.20 = 40; remaining = 275 - 40 = 235 gallons; credit = 235 x $4.20 = $987.

Question 3

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 4

Three buyers are harmed by one licensee in the same transaction and each obtains a $30,000 unpaid judgment for dishonest conduct. Before any proration, what is the most the fund will pay in total?

Accepted Answer

Each claimant is capped at $20,000, so the claims become 3 × $20,000 = $60,000. But total payments for one transaction are capped at $50,000, so the Board prorates $50,000 among the three claimants.

Question 5

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 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

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

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 9

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 10

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 11

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 12

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 13

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 14

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 15

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 16

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 17

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 18

Monthly rent is $2,150. What is the maximum security deposit under the VRLTA?

Accepted Answer

The cap is two months' periodic rent: 2 × $2,150 = $4,300. $3,225 is 1.5 months and $6,450 is 3 months.

Question 19

A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

Accepted Answer

In an exclusive right-to-sell listing, the listing broker earns a commission no matter who procures the buyer, even the owner. (Reclassified to section 6 / CORE.)

Question 20

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 21

A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

Accepted Answer

Points = cost / loan = $3,150 / $210,000 = 0.015 = 1.5 points (1 point = 1% of the loan).

Question 22

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 23

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 24

A buyer's agent's commission is paid by the seller out of the sale proceeds. Under Virginia law, whom does the buyer's agent represent?

Accepted Answer

Section 54.1-2140 states that payment or promise of compensation does not create a brokerage relationship with any party. The brokerage agreement determines whom the licensee represents.

Question 25

A Virginia broker has completed the 11 core mandatory hours and the 8 supervision hours this term. How many more hours must the broker complete to renew active?

Accepted Answer

Broker CE totals 24 hours: 11 core + 8 supervision = 19 mandatory hours. 24 - 19 = 5 elective hours remain.

Virginia real estate math practice test

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

2. A 275-gallon heating oil tank costs $168 to fill at $4.20 per gallon. The buyer will credit the seller for the oil remaining in the tank. What is the credit?

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

4. Three buyers are harmed by one licensee in the same transaction and each obtains a $30,000 unpaid judgment for dishonest conduct. Before any proration, what is the most the fund will pay in total?

5. 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?

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

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

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

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

11. 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?

12. 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?

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

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

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

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

17. 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?

18. Monthly rent is $2,150. What is the maximum security deposit under the VRLTA?

19. A listing agreement in which the broker earns a commission regardless of who sells the property is a(n):

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

21. A borrower paid $3,150 in points on a $210,000 loan. How many points were paid?

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

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

24. A buyer's agent's commission is paid by the seller out of the sale proceeds. Under Virginia law, whom does the buyer's agent represent?

25. A Virginia broker has completed the 11 core mandatory hours and the 8 supervision hours this term. How many more hours must the broker complete to renew active?

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