Exam cheat sheet

Real Estate Exam Cheat Sheet

The formulas, the vocabulary, and every state's exam format on one page, then free practice on the same material. Original questions with explanations and sources.

Formula sheet

Every calculation formula the exam draws on. Each is machine-checked against its own worked example before it ships.

Every formula the calculation questions are built from, with a worked example.
Name	Formula	Worked example
Commission	`commission = sale price × commission rate`	A home sells for $420,000 at a 5.5% commission rate. $23,100 total commission
Commission Split	`agent share = sale price × total rate × listing/selling split × agent's split with their broker`	Sale price $380,000, 6% total commission, split 50/50 between brokerages, agent keeps 70% of their side. $7,980 to the agent
Annual Expense Proration	`seller's share = (annual amount ÷ 12) × months owned`	Annual property tax is $3,600. Seller owned the home for 5 months before closing. $1,500 seller's share, credited to the buyer
Loan-to-Value Ratio	`LTV = loan amount ÷ appraised value (or price, whichever is lower)`	A buyer borrows $255,000 on a home appraised at $300,000. 85% LTV
Down Payment from LTV	`down payment = price × (1 − LTV)`	Price is $340,000 with a 90% LTV loan. $34,000 down payment
Discount Points	`cost of points = loan amount × (points ÷ 100)`	A $280,000 loan with 2 discount points. $5,600 to buy down the rate
Monthly Interest (Interest-Only)	`monthly interest = (principal × annual rate) ÷ 12`	$200,000 principal at 6% annual interest. $1,000 monthly interest
Rectangular Area	`area = width × depth`	A lot is 90 feet wide and 150 feet deep. 13,500 square feet
Square Feet to Acres	`acres = square feet ÷ 43,560`	A parcel measures 87,120 square feet. 2 acres
Transfer Tax	`transfer tax = sale price × tax rate (often per $1,000 or $500 of price)`	Sale price $500,000, transfer tax of $2 per $1,000. $1,000 transfer tax
Capitalization Rate	`cap rate = net operating income ÷ property value`	A property has $48,000 NOI and is valued at $600,000. 8% cap rate
Gross Rent Multiplier	`GRM = property price ÷ annual gross rent`	Price is $360,000, annual gross rent is $30,000. GRM of 12
Straight-Line Depreciation	`annual depreciation = depreciable basis ÷ useful life (years)`	A rental building's depreciable basis is $275,000 (residential). $10,000 annual depreciation
Seller's Net Proceeds	`net to seller = sale price − commission − closing costs − loan payoff`	Sale price $450,000, commission $27,000, closing costs $4,000, loan payoff $210,000. $209,000 net to the seller

Full math study guide with practice · how to study the math

Terms that carry the exam

Definitions grouped the way the exam outline groups them.

{'label': 'Property Ownership', 'slug': 'property-ownership'}

Accretion: The gradual addition of land to a property through the natural deposit of soil by water.
Air Rights: The right to use, control, or occupy the space above a parcel of land, which can be sold or leased separately.
Appurtenance: A right or improvement that belongs to and passes with the land, such as an easement or a water right.
Avulsion: The sudden loss or addition of land caused by a rapid change in a watercourse, such as a flood.
Bundle of Legal Rights: The set of ownership rights attached to real property: possession, control, exclusion, enjoyment, and disposition.

{'label': 'Land Use Controls', 'slug': 'land-use-controls'}

Buffer Zone: A strip of land separating incompatible land uses, such as residential and industrial zones.
Cluster Zoning: A zoning technique that groups buildings closer together on part of a site to preserve open space elsewhere.
Comprehensive Plan: A local government's long-range guide for growth and development, which zoning ordinances must generally be consistent with.
Conditional (Special) Use Permit: Government approval allowing a use not normally permitted in a zone, subject to specific conditions.
Cumulative Zoning: A zoning approach where higher, more restrictive uses like residential are allowed in areas zoned for lower uses like industrial.

{'label': 'Valuation & Market Analysis', 'slug': 'valuation-market-analysis'}

Adjustment (Appraisal): A dollar or percentage change applied to a comparable sale's price to account for differences from the subject property.
Appraisal: A professional, unbiased opinion of a property's value performed by a licensed or certified appraiser.
Comparable Sales (Comps): Recently sold properties similar to the subject property, used as a basis for estimating value.
Comparative Market Analysis (CMA): An informal estimate of a property's value based on recent sales of similar nearby properties, prepared by a licensee.
Curable Depreciation: A loss in value that is economically feasible to repair, where the cost of the fix is less than the value it adds.

{'label': 'Financing', 'slug': 'financing'}

Acceleration Clause: A loan provision allowing the lender to demand full repayment immediately if the borrower defaults.
Adjustable-Rate Mortgage (ARM): A mortgage with an interest rate that periodically changes based on a financial index.
Amortization: The gradual repayment of a loan through regular payments that cover both principal and interest.
Balloon Payment: A large, lump-sum final payment due at the end of a loan term that is not fully amortized.
Blanket Mortgage: A single mortgage that covers more than one parcel of real property, often used by developers.

{'label': 'Agency', 'slug': 'agency'}

Agency by Estoppel: An agency relationship created when a principal's conduct leads a third party to reasonably believe an agency exists.
Agency by Ratification: An agency relationship created when a principal approves and accepts an unauthorized act performed on their behalf.
Client: A party who has an agency relationship with a broker, owed full fiduciary duties.
Customer: A party in a real estate transaction who is not represented by an agent but is still owed honesty and fair dealing.
Designated Agency: An arrangement where different agents within the same brokerage separately represent the buyer and seller.

{'label': 'Property Disclosures', 'slug': 'property-disclosures'}

As-Is Sale: A sale in which the seller does not promise repairs, though known material defects must generally still be disclosed.
Caveat Emptor: A legal doctrine meaning 'let the buyer beware,' historically limiting a seller's disclosure obligations, though largely eroded in modern practice.
Duty to Disclose: A seller's or agent's legal obligation to reveal known material facts affecting a property's value or desirability.
Environmental Site Assessment: A study conducted to identify potential or existing environmental contamination on a property.
Latent Defect: A hidden property problem not discoverable through a reasonable inspection, which must be disclosed if known.

{'label': 'Contracts', 'slug': 'contracts'}

Addendum: A document adding new terms to an existing contract without changing its original provisions.
Amendment: A document that changes or modifies existing terms within a contract both parties have already signed.
Bilateral Contract: A contract in which both parties exchange mutual promises to perform.
Consideration: Something of value exchanged between contracting parties, required for a contract to be legally binding.
Contingency: A condition in a contract that must be satisfied before the parties are obligated to complete the transaction.

{'label': 'Leasing & Property Management', 'slug': 'leasing-property-management'}

Assignment of Lease: A transfer of a tenant's entire remaining interest in a lease to a new party.
Constructive Eviction: A landlord's failure to maintain a property so severely that it forces a tenant to vacate, treated as if evicted.
Estate for Years: A leasehold with a definite start and end date that terminates automatically without notice.
Gross Lease: A lease in which the tenant pays a fixed rent and the landlord covers operating expenses like taxes and insurance.
Ground Lease: A long-term lease of land alone, where the tenant typically owns any improvements built on it during the term.

{'label': 'Transfer of Title', 'slug': 'transfer-of-title'}

Abstract of Title: A summarized history of all recorded documents affecting title to a specific parcel of land.
Acknowledgment: A formal declaration before a notary that a signature on a document is genuine and voluntary.
Actual Notice: Direct, personal knowledge of a fact, such as an unrecorded claim on a property.
Adverse Possession: A legal method of acquiring title through open, hostile, and continuous possession for a statutory period.
Bargain and Sale Deed: A deed implying the grantor holds title but providing no express warranties against defects.

{'label': 'Practice of Real Estate', 'slug': 'practice-of-real-estate'}

Agency Disclosure: A required notification informing consumers which party or parties a real estate licensee represents in a transaction.
Americans with Disabilities Act (ADA): A federal law requiring places of public accommodation to be accessible to people with disabilities.
Blockbusting: The illegal practice of inducing owners to sell by suggesting a protected class is moving into the area.
Earnest Money: A buyer's good-faith deposit made when submitting an offer, held in trust and credited at closing.
Group Boycott: An illegal antitrust violation where competitors agree to exclude another business from fair competition.

{'label': 'Real Estate Math', 'slug': 'real-estate-math'}

Annual Interest Rate: The yearly cost of borrowing money expressed as a percentage of the loan principal.
Capitalization Rate (Cap Rate): A rate of return on an income property calculated by dividing net operating income by property value.
Commission: The fee paid to a real estate brokerage for services, typically a percentage of the sale price.
Equity: The difference between a property's market value and the outstanding balance of any loans against it.
Loan-to-Value Ratio (LTV): The ratio of the loan amount to the property's appraised value or price, whichever is lower.

{'label': 'Brokerage Operations', 'slug': 'brokerage-operations'}

Broker Price Opinion (BPO): A broker's informal estimate of a property's value, distinct from a formal appraisal performed by a licensed appraiser.
Commingling: The illegal mixing of client trust funds with a brokerage's own operating funds.
Conversion: The illegal, unauthorized use of client trust funds for the broker's own purposes.
Designated (Managing) Broker: The broker legally responsible for supervising a brokerage's affiliated licensees and their real estate activities.
Errors and Omissions (E&O) Insurance: Professional liability insurance protecting real estate licensees against claims of negligence or mistakes.

All 254 terms · what the exam actually covers

Your state's exam in one row

Length, time, state-law share, and passing standard. Exam formats for 47 of 50 states are confirmed from the provider's own candidate handbook or the regulator's page.

Salesperson exam format by state, from each state's own candidate handbook or regulator page. Broker figures are on each state page.
State	Provider	Questions	State-law items	Time	Passing standard
Alaska	Pearson VUE	120	40	240 min	a scaled score of 75
Alabama	Pearson VUE	120	40	210 min	70%
Arkansas	Pearson VUE	110	30	240 min	a scaled score of 70
Arizona	Pearson VUE	140	60	240 min	75%
California	State-administered	150	30	180 min	70%
Colorado	PSI	154	74	230 min	73%
Connecticut	PSI	110	30	165 min	70%
Delaware	Pearson VUE	120	40	240 min	a scaled score of 70
Florida	Pearson VUE	100	45	210 min	75%
Georgia	PSI	152	52	240 min	72%
Hawaii	PSI	130	50	240 min	70%
Iowa	PSI	120	40	180 min	70%
Idaho	Pearson VUE	120	40	240 min	70%
Illinois	PSI	140	40	240 min	75%
Indiana	Pearson VUE	130	50	240 min	75%
Kansas	Pearson VUE	115	30	240 min	a scaled score of 70
Kentucky	PSI	120	40	240 min	75%
Louisiana	Pearson VUE	135	55	240 min	75%
Massachusetts	PSI	120	40	240 min	70%
Maryland	PSI	110	30	120 min	70%
Maine	Pearson VUE	120	40	240 min	a scaled score of 75
Michigan	PSI	115	35	180 min	70%
Minnesota	PSI	120	40	240 min	75%
Missouri	PSI	140	40	270 min	71%
Mississippi	PSI	120	40	240 min	71%
Montana	Pearson VUE	120	40	240 min	a scaled score of 75
North Carolina	Pearson VUE	140	60	270 min	75%
North Dakota	PSI	140	40	240 min	70%
Nebraska	Pearson VUE	130	50	240 min	75%
New Hampshire	PSI	120	40	240 min	70%
New Jersey	PSI	110	30	240 min	70%
New Mexico	PSI	125	50	180 min	75%
Nevada	Pearson VUE	120	40	240 min	75%
New York	State-administered	75	23	90 min	70%
Ohio	PSI	120	40	180 min	70%
Oklahoma	Pearson VUE	120	40	240 min	a scaled score of 70
Oregon	PSI	130	50	240 min	75%
Pennsylvania	Pearson VUE	120	40	210 min	75%
Rhode Island	Pearson VUE	130	50	240 min	70%
South Carolina	PSI	110	30	180 min	70%
South Dakota	PSI	142	52	270 min	75%
Tennessee	PSI	120	40	240 min	70%
Texas	Pearson VUE	125	40	240 min	62%
Utah	Pearson VUE	130	50	240 min	70%
Virginia	PSI	120	40	150 min	72%
Vermont	PSI	100	0	150 min	70%
Washington	PSI	130	30	240 min	70%
Wisconsin	Pearson VUE	140	40	240 min	75%
West Virginia	Pearson VUE	130	50	210 min	75%
Wyoming	Pearson VUE	130	50	240 min	a scaled score of 75

Practice in your browser — free

Real exam-style questions with explanations and sources. No sign-up; progress stays on this device. Enable JavaScript to practice here, or get the full experience in the free app.

What backs the practice questions

National and state coverage are measured separately, so a large shared national bank cannot conceal a thin state-law pool.

1296 national questions and a state-law bank for all 50 states, each carrying its rule and a citation. 46 of 100 state-track profiles hold at least twice their exam's length in questions and have their exam format confirmed from a primary document; the rest are honest about which half is still short, on their own state page.

Freehold writes original practice questions from official outlines, statutes, regulations, and regulator guidance. Actual examination items are confidential and may change. Independent study resource — not affiliated with PSI, Pearson VUE, or any state licensing board.

Sample questions with explanations

Every Freehold question shows why the right answer is right — and cites its source.

A listing agent's spouse wants to buy the agent's listed property at a below-market price. Without disclosing the relationship to the seller, the agent presents the offer as if it came from an ordinary buyer. This is a violation of the duty of:

Obedience
Accounting
Reasonable care
Loyalty

Show answer & explanation

Loyalty — Loyalty bars undisclosed self-dealing, and hiding a spousal relationship behind an ordinary-looking offer puts the agent's household interest ahead of the seller's. Accounting concerns the handling and record-keeping of client money, which is untouched here. Reasonable care would be about competence and diligence in performing the work. Obedience deals with following the principal's lawful instructions, and the seller gave none about this.

Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency · checked 2026-07-11

A listing agent has already presented one offer to the seller when a second, higher offer arrives before the seller has responded. The agent's fiduciary duty of disclosure requires the agent to:

Promptly present the second offer to the seller as well
Withhold the second offer until the seller decides on the first
Present only the offer most likely to close quickly
Ask the second buyer to wait until the listing agreement expires

Show answer & explanation

Promptly present the second offer to the seller as well — All offers are material information, so the higher second offer must reach the seller promptly for the seller to decide with full facts. Withholding it substitutes the agent's judgment for the principal's. Screening for whichever offer seems likely to close quickly is the same error dressed up as service; the seller weighs certainty against price, not the agent. Asking a buyer to wait for expiration serves the agent's own interest.

Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency · checked 2026-07-11

A listing expires without the property selling. Months later, the former listing agent tells a new prospective buyer what the seller would have accepted as a bottom-line price. This most likely violates the duty of:

Obedience, since the agent no longer has to follow instructions
Confidentiality
Accounting, because no funds were involved
Reasonable care, since the listing had already expired

Show answer & explanation

Confidentiality — Confidentiality outlasts the agency, so a former client's bottom-line price stays protected after the listing ends. Obedience does lapse with the relationship, which is exactly why it is the wrong duty to reach for here. Accounting attaches to client funds and records, and the absence of money does not make it fit. Reasonable care concerns competent performance during the engagement, not later disclosures.

Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency · checked 2026-07-11

Cheat sheet FAQ

Is this a real estate exam cheat sheet with the actual exam questions?

No, and no legitimate resource has those. Examination items are confidential. This page compresses what is public: the calculation formulas, the vocabulary the questions are written against, and each state's published exam format.

What should I memorise the night before?

The formulas table, because arithmetic is the fastest thing to lose under time pressure, and your own state's row in the format table so the length, time limit, and passing standard hold no surprises.

Is it free?

Yes. Every formula, definition, question, explanation, and source citation is free with no sign-up. Practice progress stays in this browser.

How does the practice below match the real exam?

Questions are selected against the same official blueprint weights and the same national/state allocation as a full mock, then mixed for instant feedback rather than kept in scored sections. The app's mock exam keeps the real length and timer.

Every state's exam · Salesperson practice test · Broker practice test · License requirements

Real Estate Exam Cheat Sheet

Formula sheet

Terms that carry the exam

{'label': 'Property Ownership', 'slug': 'property-ownership'}

{'label': 'Land Use Controls', 'slug': 'land-use-controls'}

{'label': 'Valuation & Market Analysis', 'slug': 'valuation-market-analysis'}

{'label': 'Financing', 'slug': 'financing'}

{'label': 'Agency', 'slug': 'agency'}

{'label': 'Property Disclosures', 'slug': 'property-disclosures'}

{'label': 'Contracts', 'slug': 'contracts'}

{'label': 'Leasing & Property Management', 'slug': 'leasing-property-management'}

{'label': 'Transfer of Title', 'slug': 'transfer-of-title'}

{'label': 'Practice of Real Estate', 'slug': 'practice-of-real-estate'}

{'label': 'Real Estate Math', 'slug': 'real-estate-math'}

{'label': 'Brokerage Operations', 'slug': 'brokerage-operations'}

Your state's exam in one row

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What backs the practice questions

Sample questions with explanations

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