TEXAS REAL ESTATE EXAM PREP
(FROM PEARSON VUE AND &
CHAMPIONS NATIONAL EXAM PREP)
UPDATED 2025) QUESTIONS WITH
100% VERIFIED
ANSWERS|EXCELLENT SCORE
Mark purchased a home for $150,000 He had an 80% LTV. He has paid
off $42,000 of his purchase mortgage. He is selling the house for
$179,000. How much equity does he have?
a. $71,000
b. $59,000
c. $101,000
d. $78,000 - CORRECT-ANSWER-c) $101,000
,Maria is planning to buy a house for $200,000. The lender has indicated
that he will charge 3 points plus an origination point. Maria is
considering the difference between an 80% LTV and a 75% LTV. How
much will she save on points if she chooses the 75% LTV?
a) 5%
b) $1600
c) $6000
d) $400 - CORRECT-ANSWER-d) $400
An office space is 24 feet long and 27 feet wide with 10-foot ceilings.
The owner wants to carpet the office. How many square yards of carpet
does he need?
a) 72
b) 216
c) 648
d) 1944 - CORRECT-ANSWER-a) 72
A property is listed for $399,500. It sells for $396,000. The negotiated
commission is 6% and will be split evenly between the selling broker
,and the listing broker. The selling broker pays his sales associate 60% of
the broker's commission. How much does the selling broker earn?
a) $11,880
b) $4,752
c) $7,128
d) $5,940 - CORRECT-ANSWER-b) $4,752
A developer has 2,178,000 sq.ft. of property. He sells 80% of it for
$5,000 an acre. What is the total sale price?
a) $200,000
b) $100,000
c) $250,000
d) $125,000 - CORRECT-ANSWER-a) $200,000
An office building has a potential gross rent of $20,000 per month. It
has a vacancy rate of 15%. Yearly expenses for the property total
$115,000. If the owner is earning a 10% rate of return, what is the value
of the building?
a) $204,000
, b) $240,000
c) $890,000
d) $1,250,000 - CORRECT-ANSWER-c) $890,000
What is the minimum monthly income your buyers need to qualify for a
$200,000 loan at 6% for 30 years if lenders are qualifying at 28%? (The
loan factor is $6.00). Monthly taxes and insurance will be $900.
a) $7,500
b) $6,786
c) $4,286
d) $7,686 - CORRECT-ANSWER-a) $7,500
A sale is closing on June 15th and the annual property tax bill has not
been paid. The house is assessed at $350,000 and the tax rate is $2.50
per $100. Using a 360-day year, how much will the seller owe for taxes
at closing (to the nearest dollar) and how will this be shown on the CD?
a) $4375 debit the seller/credit the buyer
b) $4375 credit the seller/debit the buyer
c) $4010 debit the seller/credit the buyer
(FROM PEARSON VUE AND &
CHAMPIONS NATIONAL EXAM PREP)
UPDATED 2025) QUESTIONS WITH
100% VERIFIED
ANSWERS|EXCELLENT SCORE
Mark purchased a home for $150,000 He had an 80% LTV. He has paid
off $42,000 of his purchase mortgage. He is selling the house for
$179,000. How much equity does he have?
a. $71,000
b. $59,000
c. $101,000
d. $78,000 - CORRECT-ANSWER-c) $101,000
,Maria is planning to buy a house for $200,000. The lender has indicated
that he will charge 3 points plus an origination point. Maria is
considering the difference between an 80% LTV and a 75% LTV. How
much will she save on points if she chooses the 75% LTV?
a) 5%
b) $1600
c) $6000
d) $400 - CORRECT-ANSWER-d) $400
An office space is 24 feet long and 27 feet wide with 10-foot ceilings.
The owner wants to carpet the office. How many square yards of carpet
does he need?
a) 72
b) 216
c) 648
d) 1944 - CORRECT-ANSWER-a) 72
A property is listed for $399,500. It sells for $396,000. The negotiated
commission is 6% and will be split evenly between the selling broker
,and the listing broker. The selling broker pays his sales associate 60% of
the broker's commission. How much does the selling broker earn?
a) $11,880
b) $4,752
c) $7,128
d) $5,940 - CORRECT-ANSWER-b) $4,752
A developer has 2,178,000 sq.ft. of property. He sells 80% of it for
$5,000 an acre. What is the total sale price?
a) $200,000
b) $100,000
c) $250,000
d) $125,000 - CORRECT-ANSWER-a) $200,000
An office building has a potential gross rent of $20,000 per month. It
has a vacancy rate of 15%. Yearly expenses for the property total
$115,000. If the owner is earning a 10% rate of return, what is the value
of the building?
a) $204,000
, b) $240,000
c) $890,000
d) $1,250,000 - CORRECT-ANSWER-c) $890,000
What is the minimum monthly income your buyers need to qualify for a
$200,000 loan at 6% for 30 years if lenders are qualifying at 28%? (The
loan factor is $6.00). Monthly taxes and insurance will be $900.
a) $7,500
b) $6,786
c) $4,286
d) $7,686 - CORRECT-ANSWER-a) $7,500
A sale is closing on June 15th and the annual property tax bill has not
been paid. The house is assessed at $350,000 and the tax rate is $2.50
per $100. Using a 360-day year, how much will the seller owe for taxes
at closing (to the nearest dollar) and how will this be shown on the CD?
a) $4375 debit the seller/credit the buyer
b) $4375 credit the seller/debit the buyer
c) $4010 debit the seller/credit the buyer
