Tennessee Real Estate Affiliate Broker Exam — All Questions

← Back to practice
AllProperty OwnershipLand Use Controls and RegulationsValuation and Market AnalysisFinancingContractsAgencyProperty DisclosuresTransfer of TitlePractice of Real EstateProperty ManagementReal Estate CalculationsTennessee License Law (T.C.A. 62-13)Tennessee AgencyTennessee PracticeTennessee Requirements (E&O)

2 questions

Real Estate Calculations

A home sells for $300,000 and the total real estate commission is 6% of the sale price. What is the total commission?

  • a.$1,800
  • b.$18,000✓
  • c.$15,000
  • d.$24,000

Commission equals sale price multiplied by the rate: $300,000 x 0.06 = $18,000. Be careful to convert the percentage to a decimal (6% = 0.06). This $18,000 is the total paid to the brokerages before any split between the listing and selling sides.

Real Estate Calculations

A property has a market value of $250,000 and is assessed at 40% of value. If the tax rate is $2.50 per $100 of assessed value, what is the annual property tax?

  • a.$2,500✓
  • b.$6,250
  • c.$1,000
  • d.$10,000

First find assessed value: $250,000 x 0.40 = $100,000. Then divide by 100 to get the number of tax units: $100,000 / 100 = 1,000. Multiply by the rate: 1,000 x $2.50 = $2,500. Always apply the assessment ratio before the tax rate.

Report