Texas Real Estate Exam
Free Preview · re-math Real Estate Calculations · 5 Questions · 10 min
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Question 1 of 5
Real Estate CalculationsMedium

A buyer is purchasing a $250,000 home with a $50,000 down payment. What is the loan-to-value (LTV) ratio?

A100%
B25%
C20%
D80%
Explanation
Loan amount is $250,000 − $50,000 = $200,000. LTV = loan ÷ value = $200,000 ÷ $250,000 = 80%. Common errors: dividing the down payment by the loan amount instead of the price ($50,000 ÷ $200,000 = 25%), or calculating the down-payment percentage (20%) instead of the loan-to-value percentage — the two are complements of each other.
Question 2 of 5
Real Estate CalculationsMedium

A $15,000 total commission is split 50/50 between the listing broker and buyer's broker. How much does each broker's side receive?

A$7,500
B$5,000
C$10,000
D$15,000
Explanation
$15,000 split evenly between two sides is $15,000 ÷ 2 = $7,500 each. The distractors reflect common errors: splitting into thirds instead of halves, or not dividing the total at all.
Question 3 of 5
Real Estate CalculationsMedium

A rectangular lot measures 120 feet by 90 feet. What is its area in square feet?

A11,800 square feet
B21,600 square feet
C10,800 square feet
D9,800 square feet
Explanation
Area of a rectangle = length × width: 120 × 90 = 10,800 square feet. Common errors: a simple multiplication slip in either direction, or doubling the correct area by mistake (10,800 × 2 = 21,600), as if counting the space twice.
Question 4 of 5
Real Estate CalculationsMedium

Annual property taxes are $3,650. At closing on day 100 of the year (365-day year), how much is the seller's share of taxes, assuming the seller pays for the days they owned the property this year?

A$1,650
B$3,650
C$1,000
D$2,650
Explanation
Daily rate = $3,650 ÷ 365 = $10/day. The seller owned the property for the first 100 days: 100 × $10 = $1,000. Common errors: using 165 days instead of 100 ($1,650), or calculating the buyer's remaining share (265 days = $2,650) instead of the seller's.
Question 5 of 5
Real Estate CalculationsMedium

A property sells for $300,000 with a 6% total commission. How much is the total commission?

A$15,000
B$30,000
C$18,000
D$20,000
Explanation
Commission = sale price × commission rate: $300,000 × 0.06 = $18,000. The distractors come from common slip-ups: using a 5% rate instead of 6% ($15,000), rounding the rate up instead of down, or misplacing the decimal.

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