Before you read
Test yourself first: 5 questions
Question 1 of 5
The EPA's recommended action level at which homeowners should take steps to reduce indoor radon is:
Answer: C. The EPA recommends remediation (radon mitigation) when indoor radon levels reach or exceed 4.0 picocuries per liter (pCi/L) of air.
Question 2 of 5
What does an acceleration clause in a mortgage allow the lender to do?
Answer: B. An acceleration clause lets the lender declare the entire unpaid balance immediately due and payable when the borrower defaults, which is a necessary step before foreclosure.
Question 3 of 5
Risk management in a brokerage is best described as the practice of:
Answer: B. Risk management is the systematic process of identifying potential sources of loss or liability, assessing them, and taking steps to avoid, control, transfer, or retain that risk.
Question 4 of 5
Which of the following is the FIRST step in the appraisal process?
Answer: B. The appraisal process begins with defining the appraisal problem (purpose, type of value, effective date, and scope of work) before any data is gathered or analyzed.
Question 5 of 5
In the appraisal process, the final step in which the appraiser weighs the value indications from the different approaches to arrive at a single value estimate is called:
Answer: B. Reconciliation is the analysis and weighting of the value indications from the approaches used to reach a final opinion of value; it is not a simple averaging.
Keep the streak going with more questions like these, each with a full rationale.
What you need to know
(1) Find the ANNUAL amount (taxes $3,600). (2) Get the daily rate — statutory method: $3,600 ÷ 360 = $10/day (30-day months); actual method: ÷ 365. (3) Count the days the SELLER owned (statutory: full months × 30 + odd days; closing June 15, seller owns Jan 1–Jun 15 = 5×30+15 = 165 days). (4) Assign: taxes paid in ARREARS → seller owes their share: DEBIT seller, CREDIT buyer $1,650. If the item was PREPAID, flip it: credit seller, debit buyer for the unused remainder. Always answer the question asked — 'the buyer's credit' and 'the seller's debit' are the same number wearing different hats.
Solving Prorations Step by Step: FAQs
Is Solving Prorations Step by Step on the real estate exam?
Yes. Real Estate Math is a scored domain on the real estate licensing exam, and this topic appears in the national portion.
Is this cheat sheet free?
Yes — every page on Cinna RE's resource library is free to read, print and share. The app adds practice questions, mock exams and a readiness score.
