Free National / General study sheet
Real Estate Math Texas Real Estate Exam Cheat Sheet
Quick answerThe math area uses property measurements, valuation, commissions, financing, settlement, investment, and property-management scenarios. The setup matters more than fast arithmetic.
Source-checked National / General portion
Use the national rule unless the question identifies Texas law or a TREC form. The 7-item weight belongs to the National / General portion. Texas-specific recall cards below are bridges to the separate state portion.
Write the relationship, label the units, convert the percentage to a decimal, and only then calculate. Use the day-count and closing-day convention stated in the question.
Exam scope
What Pearson tests
Verified against the official content outline.
- A. Property area: square footage and acreage total
- B. Property valuation: CMA, NOI, cap rate, equity, listing price, assessed value, and property taxes
- C. Commission and compensation calculations
- D. Loan financing costs: interest, LTV, fees, amortization, discount points, and prepayment penalties
- E. Settlement and closing costs: purchase price, down payment, PITI, seller net, buyer cost, prorations, debits, credits, transfer tax, and recording fees
- F. Investment: return, appreciation, depreciation, and investment tax implications
- G. Property management: budgets, tenancy, and rental calculations
Decision traps
Common traps to catch
Check the governing source material.
- Pearson says to memorize 43,560 square feet per acre and 5,280 feet per mile.
- Cap rate uses NOI. GRM uses gross rent. Mixing net and gross figures produces the wrong answer.
- A proration question supplies the required 360-day or 365-day convention and who owns the closing day.
- One discount point is 1 percent of the loan amount. It is not a guaranteed quarter-point reduction in the interest rate.
- Transfer-tax math remains testable on the National/General portion when the question supplies a rate. Texas itself prohibits a new statewide tax on a fee-simple conveyance.
- Market depreciation, tax depreciation, appreciation, equity, gain, and return are different calculations. Use the label in the final question.
Essential vocabulary
Real Estate Math terms to know
- Loan-to-value ratio
- Loan amount divided by the lender's stated value, expressed as a percentage.
- Proration
- Allocation of an expense or income item between parties for their periods of ownership.
- Capitalization rate
- NOI divided by value, or the market rate used to convert NOI into value.
- Gross rent multiplier
- Sale price divided by gross rent for the stated rental period.
- Ad valorem tax
- A tax based on value.
- Mill
- One-thousandth of a dollar, equal to $1 of tax per $1,000 of value.
- Debit
- An amount charged to a party on a settlement statement.
- Credit
- An amount entered in a party's favor on a settlement statement.
Check your recall
Can you answer these without notes?
Open each card only after you commit to an answer.
1Which two conversions does Pearson say to memorize?
43,560 square feet per acre and 5,280 feet per mile.
2What is the value formula using NOI and cap rate?
Value equals NOI divided by the capitalization rate.
3How do you find total commission?
Multiply the sale price by the commission rate stated in the question.
4What does one discount point equal?
One percent of the loan amount. The rate reduction is not fixed.
5Should you assume a 360-day year for every proration?
No. Use the 360-day or 365-day basis and closing-day owner stated in the question.
6What separates appreciation, equity, and ROI?
Appreciation compares values, equity subtracts debt from current value, and ROI divides the stated return by the stated investment.
7How do you move from potential gross income to NOI?
Subtract vacancy and collection loss, add other income to reach effective gross income, then subtract operating expenses.
Use the sheet, then retrieve
Turn recognition into recall.
Read the full lesson when a definition is fuzzy. Then answer the topic questions without looking back at this sheet.
Primary sources
Checked .
- Pearson VUE Texas Real Estate Content Outlines
- Pearson VUE Texas Real Estate Candidate Handbook
- Texas Comptroller, Property Tax Exemptions
- Texas Constitution Article VIII, Section 29
- CFPB, Lender Credits and Discount Points
- IRS Publication 527 (2025)
This is exam-prep education, not legal, tax, or transaction advice. Confirm the current law, form, and official exam materials before relying on a rule in practice.