Free Wisconsin Math Practice Test — LicenseIQ

Question 1

Within what time must a firm withdraw its earned commission from the trust account after the transaction is consummated?

Accepted Answer

REEB 18.09(3) requires withdrawal of earned commissions or fees within 24 hours.

Question 2

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 3

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 4

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 5

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 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 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 8

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 9

A seller's home sells for $350,000. The seller pays a 5 percent commission and the transfer fee. What is the combined total of these two costs?

Accepted Answer

Commission: $350,000 x 0.05 = $17,500. Transfer fee: $350,000 / 100 = 3,500 x $0.30 = $1,050. Total: $17,500 + $1,050 = $18,550.

Question 10

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 11

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 12

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 13

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 14

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 15

A firm mails the required certified-mail notice of intent to disburse disputed earnest money on September 10, 2026. What is the earliest date it may disburse?

Accepted Answer

Disbursement may not occur until 30 days after the notice is sent. September has 30 days, so 30 days after September 10 is October 10, 2026.

Question 16

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 17

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 18

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 19

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 20

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 21

A property sells for $412,300. What is the transfer fee?

Accepted Answer

$412,300 is an even hundred, so $412,300 / 100 = 4,123 units x $0.30 = $1,236.90. Using $4 per $1,000 would give $1,649.20.

Question 22

A person sues in a Wisconsin court for a real estate commission. What must the person allege and prove?

Accepted Answer

Section 452.20 bars a commission action unless the plaintiff alleges and proves licensure at the time the claim arose. Association membership and notarization are irrelevant.

Question 23

A home sells for $287,450. What is the Wisconsin real estate transfer fee?

Accepted Answer

The fee is 30 cents per $100 or fraction. Round $287,450 up to $287,500. $287,500 / 100 = 2,875 units x $0.30 = $862.50. Multiplying the unrounded price by 0.003 gives $862.35, which ignores the fraction rule.

Question 24

A salesperson with 30 months of supervised experience in the last four years has completed 3 residential transactions, 2 commercial transactions, and 16 months of property management. How many broker experience points does the salesperson have?

Accepted Answer

Residential: 3 x 5 = 15. Commercial: 2 x 10 = 20. Property management: 16 x 0.5 = 8. Total 15 + 20 + 8 = 43, which exceeds the 40-point minimum. Counting property management as one point per month would wrongly give 51.

Question 25

Binding acceptance occurs Friday, May 1, 2026. The seller never delivers a Real Estate Condition Report. What is the last day for the buyer to deliver written rescission?

Accepted Answer

The 10-day delivery period runs to Monday, May 11. The buyer then has 2 business days after that period ends: Tuesday, May 12 and Wednesday, May 13. May 11 is the seller's deadline, not the buyer's.

Wisconsin real estate math practice test

1. Within what time must a firm withdraw its earned commission from the trust account after the transaction is consummated?

2. 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?

3. 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?

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

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

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

7. 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?

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

9. A seller's home sells for $350,000. The seller pays a 5 percent commission and the transfer fee. What is the combined total of these two costs?

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

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

12. 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?

13. 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?

14. 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:

15. A firm mails the required certified-mail notice of intent to disburse disputed earnest money on September 10, 2026. What is the earliest date it may disburse?

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

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

18. 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?

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

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

21. A property sells for $412,300. What is the transfer fee?

22. A person sues in a Wisconsin court for a real estate commission. What must the person allege and prove?

23. A home sells for $287,450. What is the Wisconsin real estate transfer fee?

24. A salesperson with 30 months of supervised experience in the last four years has completed 3 residential transactions, 2 commercial transactions, and 16 months of property management. How many broker experience points does the salesperson have?

25. Binding acceptance occurs Friday, May 1, 2026. The seller never delivers a Real Estate Condition Report. What is the last day for the buyer to deliver written rescission?

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