Current Texas contract and national exam math

Mixed closing math, balanced from both sides.

Reconcile seller net and buyer cash to close, then isolate compensation, points, LTV, title costs, recording fees, and tax prorations without mixing the ledgers.

Quick answer

Seller net = seller credits - seller debits. Buyer cash to close = buyer debits - buyer credits. Before calculating, label every entry with its party, direction, and formula base. Pearson VUE's January 2026 outline explicitly includes net to seller, cost to buyer, prorated items, debits and credits, transfer tax, and recording fees.

Seller net
Credits - debits

Start with seller credits, then subtract payoff, compensation, seller costs, concessions, and seller proration debits.

Buyer cash to close
Debits - credits

Start with price and buyer costs, then subtract financing, deposits, seller credits, and buyer proration credits.

Discount points
Loan x points %

One point is 1% of the loan amount, not 1% of the sale price.

Tax proration
Daily rate x days

Unpaid and prepaid items reverse the debit and credit direction.

Calculator

Build the transaction once, then answer the exact closing question.

Try an example:
What is the final question asking for?

Select the answer before entering the line items. Every other result stays visible for checking.

Transaction and financing

Sale price is a seller credit and buyer debit. Financing and earnest money are buyer credits.

Seller side

Seller net starts with sale-price credits, then subtracts payoff and seller debits.

Buyer side

Enter buyer-paid loan, brokerage, recording, and other costs separately from the purchase price.

Owner's title policy

TREC Form 20-19 lets the contract select Seller or Buyer. Use the premium supplied by the question or current title quote.

Who pays the owner's title policy?
Property-tax proration

Pearson VUE says the question will specify the 360/365 basis and who owns closing day. Enter the resulting seller-owned days.

Were current-year taxes unpaid or prepaid?
Texas state transfer tax is $0. The national/general exam still covers transfer tax, so follow a hypothetical rate supplied by the question. This worksheet does not invent one.
Estimated seller net
$139,283.00
$425,450.00 seller credits - $286,167.00 seller debits = $139,283.00.
Seller net$139,283.00
Buyer cash to close$80,128.00
Base check

Brokerage compensation uses sale price. Discount points use loan amount. LTV is loan divided by the value basis supplied by the question.

Side check

The owner's title policy is assigned to the seller. Current TREC Form 20-19 makes that expense a contract selection, not an automatic seller charge.

Proration check

Seller debit and buyer credit. The calculation uses 196 days on a 365-day basis.

Transfer-tax check

Texas has no state tax on a fee-simple real property transfer. The national/general outline still covers transfer tax, so use a rate when the question supplies another jurisdiction or hypothetical.

Sale priceSeller credit and buyer debit
$425,450.00
Seller brokerage compensation$425,450.00 x 6%
$25,527.00
Seller loan payoffPaid from seller proceeds
$250,000.00
Seller-paid owner's title policyContract-selected seller debit
$2,388.00
Seller recording and other costsSeller document fees + other entered costs
$900.00
Seller credit toward buyer expensesSeller debit and buyer credit
$5,000.00
Property-tax proration$12.00 daily x 196 days; seller debit and buyer credit
$2,352.00
Seller creditsSale price + prepaid-tax reimbursement, if any
$425,450.00
Seller debitsPayoff + compensation + seller costs and credits
$286,167.00
Seller netSeller credits - seller debits
$139,283.00
Purchase loan79.9154% of sale price
$340,000.00
Down paymentSale price - loan amount
$85,450.00
Discount points$340,000.00 x 1%
$3,400.00
Buyer recording and other costsBuyer document fees + other entered costs
$3,630.00
Earnest-money creditDeposit already paid
$5,000.00
Buyer debitsPrice + buyer closing costs + prepaid-tax reimbursement
$432,480.00
Buyer creditsLoan + earnest money + seller credit + unpaid-tax credit
$352,352.00
Buyer cash to closeBuyer debits - buyer credits
$80,128.00
Statement check

Down payment is not the same as cash to close. Cash to close starts with the down payment, then adds buyer costs and debits and subtracts deposits, seller credits, and other buyer credits.

The worksheet keeps full precision and rounds displayed money to cents and ratios to four decimal places when needed. Pearson VUE says to use standard rounding where applicable. A real Closing Disclosure can contain additional lender, escrow, tax, insurance, and contract entries.

Save it

Email this closing worksheet for later review.

Keep the buyer and seller ledgers, proration direction, financing, and selected final answer together.

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Open the mixed closing math cheat sheet
Mini quiz

Try five mixed-closing traps without the worksheet.

1/5

A seller owes 6% brokerage compensation on a $425,450 sale. What is the amount?

Five-step setup

Treat the question like a small ledger.

The arithmetic is not the difficult part. The skill is keeping each line on the correct side and using the correct base.

1. Circle the final answer

Seller net, buyer cash to close, tax proration, brokerage compensation, and LTV are different answers from the same transaction.

2. Give every line a party

Write B or S beside each entry. If the entry is reciprocal, record one party's debit and the other party's credit.

3. Give every percentage a base

Brokerage compensation usually uses sale price. Points use loan amount. LTV uses loan divided by the value basis stated in the question.

4. Decide whether the item was unpaid or prepaid

Unpaid taxes commonly produce a seller debit and buyer credit for seller days. Prepaid taxes reverse the direction for buyer days.

5. Add only the requested ledger

Do not combine buyer and seller numbers just because they appear in the same question. Re-read the final sentence before totaling.

Worked examples

Six entries that build a complete closing answer.

These examples use the calculator's default transaction so every subtotal can be checked against the final ledger.

Brokerage compensation
Sale-price base

$425,450 sale at 6%

$425,450 x 0.06
$25,527 seller debit

TREC Form 20-19 says compensation is negotiable and comes from separate written agreements.

Discount point
Loan base

One point on a $340,000 loan

$340,000 x 0.01
$3,400 buyer loan cost

Do not use the $425,450 sale price as the points base.

Unpaid taxes
Seller-day credit

$4,380 annual tax, 196 seller days, 365-day basis

$4,380 / 365 x 196
$2,352 seller debit and buyer credit

The amount and direction are both part of the answer.

Prepaid taxes
Buyer-day reimbursement

Same tax facts, but taxes already paid

$12 daily x (365 - 196) buyer days
$2,028 buyer debit and seller credit

Prepaid reverses the direction and uses buyer-owned days.

Seller net
Seller ledger

$425,450 credits and $286,167 debits

$425,450 - $286,167
$139,283 estimated seller net

A loan payoff reduces seller proceeds but is not a buyer closing cost.

Buyer cash to close
Buyer ledger

$432,480 debits and $352,352 credits

$432,480 - $352,352
$80,128 estimated cash to close

Down payment alone is not cash to close. Add buyer costs and adjustments, then subtract deposits and credits.

Accuracy checks

The four assumptions this worksheet refuses to make.

Current Texas forms changed the way several familiar closing lines should be described. The party selection now matters more than the old shortcut.

Contract check

Do not assign title cost from habit

Current TREC Form 20-19 lets the contract choose Seller or Buyer for the owner's title policy. The calculator moves that amount to the selected ledger.

Document check

Recording fees belong to documents

The seller commonly pays releases of existing liens. The buyer commonly pays recording for purchase and financing documents. Keep separate inputs.

Cash check

Down payment is not cash to close

Buyer cash to close includes down payment, buyer costs, deposits already paid, seller credits, and closing adjustments.

Jurisdiction check

Texas and national questions differ

Texas has no state fee-simple real property transfer tax. Pearson's national/general outline still covers transfer tax, so use a rate when another jurisdiction or hypothetical is supplied.

Why this worksheet is current

Built against the July 2026 Texas contract.

TREC Form 20-19 became effective July 1, 2026. Paragraph 6 lets the contract assign the owner's title policy to Seller or Buyer. Paragraph 12 separates seller expenses, buyer expenses, and negotiable brokerage compensation. Paragraph 13 prorates taxes and other periodic items through closing. TDI's basic title premium rates changed March 1, 2026, including a 6.2% reduction.

Questions students ask

Mixed closing math FAQ.

How do I calculate seller net?+

Add seller credits, usually including sale price and any reimbursements due to the seller. Then subtract seller debits such as loan payoff, brokerage compensation, seller-paid title or recording costs, concessions, and seller proration debits.

How do I calculate buyer cash to close?+

Add the sale price, buyer closing costs, and buyer adjustment debits. Subtract loan proceeds, earnest money already paid, seller credits, and buyer adjustment credits. A negative result means funds would be due to the buyer in the simplified worksheet.

What is the difference between down payment and cash to close?+

Down payment is the portion of price not covered by purchase financing. Cash to close also includes buyer closing costs and adjustments, minus deposits and other credits.

Who pays for the owner's title policy in Texas?+

Do not assume. Paragraph 6A of current TREC Form 20-19 provides a Seller or Buyer expense selection. The contract controls. Texas title rates are set through the Texas Department of Insurance, and the basic rates changed effective March 1, 2026.

Who pays recording fees in a Texas resale contract?+

Current TREC Form 20-19 lists releases of existing liens and their recording fees among seller expenses. It lists buyer recording fees among buyer expenses. A question or contract can supply more specific facts, so classify the document before assigning the cost.

How do unpaid and prepaid tax prorations differ?+

For unpaid taxes, the seller commonly credits the buyer for the seller-owned period because the buyer will later pay the bill. For prepaid taxes, the buyer reimburses the seller for the buyer-owned period. The exam question will specify the day basis and closing-day ownership when needed.

Does Texas have a real estate transfer tax?+

Texas does not impose a state transfer tax on a transaction conveying fee-simple title. Article VIII, Section 29 of the Texas Constitution prohibits enacting one after January 1, 2016. The national/general exam outline still includes transfer-tax math, so follow any jurisdiction and rate supplied by the question.

Is this calculator a real Closing Disclosure?+

No. It is an educational reconciliation tool. A real Closing Disclosure and settlement statement can include additional lender charges, escrow deposits, prepaid interest, insurance, tax items, contract credits, and regulatory disclosures.

Try it without help

A $450,000 purchase has a $360,000 loan, $6,000 buyer costs, $5,000 earnest money, and a $3,000 seller credit. What is buyer cash to close?

Buyer debits are $456,000. Buyer credits are $368,000. Cash to close is $88,000. Notice that the $90,000 down payment was only the starting point.

Practice after reconciling

Balance the worksheet slowly.
Then recognize each line quickly.

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Primary sources: Pearson VUE Texas Real Estate Exams Content Outlines, TREC Form 20-19, TDI 2026 title insurance basic premium rates, Texas Constitution Article VIII, and CFPB Closing Disclosure explainer. This page is for exam preparation and arithmetic checking, not a settlement statement, Closing Disclosure, title quote, lending decision, tax opinion, or legal advice.