Louisiana Real Estate Exam Math Practice

Math questions on the Louisiana PSI real estate exam follow the same national formulas as every other state — but some scenarios involve Louisiana's community property rules and judicial foreclosure concepts. Here's what to practice.

Core Formulas

Commission > Commission = Sale Price × Commission Rate

Net to Seller > Net = Sale Price − Commission − Closing Costs − Mortgage Payoff

Loan-to-Value (LTV) > LTV = Loan Amount ÷ Purchase Price

Proration (360-day year) > Daily rate = Annual amount ÷ 360 > Proration = Daily rate × Days elapsed

Community Property Division > Each spouse's share = Total community property ÷ 2

Practice Problems

Problem 1 — Commission Calculation

A Baton Rouge home sells for $320,000. The listing agreement provides for a 6% total commission, split equally between listing and buyer's brokers. The listing salesperson earns 60% of the listing broker's share. How much does the listing salesperson earn?

*Step 1:* $320,000 × 6% = $19,200 total commission *Step 2:* $19,200 ÷ 2 = $9,600 to listing broker *Step 3:* $9,600 × 60% = $5,760

Problem 2 — Property Tax Proration

Annual taxes on a New Orleans property are $3,960. Closing (the Act of Sale) is September 1 (360-day year: 8 months = 240 days). Taxes paid in arrears. How much does the seller owe the buyer?

*Step 1:* $3,960 ÷ 360 = $11.00/day *Step 2:* $11.00 × 240 = $2,640 (seller credit to buyer)

Problem 3 — Net Proceeds

A Lafayette seller's home sells for $285,000. They owe $162,000 on their mortgage. Commission is 5.5%, and closing costs are $5,000. What are their net proceeds?

*Step 1:* Commission = $285,000 × 5.5% = $15,675 *Step 2:* Net = $285,000 − $15,675 − $5,000 − $162,000 = $102,325

Problem 4 — Community Property Division

A Louisiana couple divorces. Their community property includes a home with equity of $180,000 and a savings account with $42,000. No separate property is involved. What is each spouse's community property share?

*Total community property = $180,000 + $42,000 = $222,000* *Each spouse's share = $222,000 ÷ 2 = $111,000*

Problem 5 — Loan-to-Value

A buyer purchases a Shreveport home for $255,000 and makes an 8% down payment. What is the loan amount and LTV?

*Step 1:* Down payment = $255,000 × 8% = $20,400 *Step 2:* Loan = $255,000 − $20,400 = $234,600 *Step 3:* LTV = $234,600 ÷ $255,000 = 92%

Problem 6 — Usufruct Valuation (Conceptual)

A property has a fair market value of $400,000. The usufructuary has use rights; the naked owner has the underlying interest. If the property is sold, how is the proceeds split?

This is more conceptual than arithmetic — the split depends on actuarial tables (age of the usufructuary) or the terms of the usufruct agreement. On the exam, you'll typically see this as a concept question, not a calculation. Know that both the usufructuary and naked owner have separate, quantifiable interests.

Louisiana Math Notes

CE hours: 12 hours per 2-year renewal cycle = 6 hours per year. Know both. LREC: 9 members. Not a math problem, but a number tested on the state exam. Passing threshold: 75% on 55 state questions = 42 correct minimum. If you get 42 out of 55, you pass state. One miscalculation in which topics you skipped can matter.

Tips for Exam Day

• PSI provides an on-screen calculator
• Write out every step on scratch paper
• For community property problems: always divide equally unless the fact pattern specifies separate property
• For proration: clarify whether taxes are paid in advance or arrears — this determines who gets the credit

More practice at [CARealestate.com/states/louisiana](https://carealestate.com/states/louisiana).