Minnesota Real Estate Exam Math Practice

Math questions make up approximately 10% of the national section of the Minnesota real estate exam. Minnesota also tests the deed tax calculation in the state section — a straightforward percentage calculation once you know the correct rate.

Essential Formulas

Commission Commission = Sale Price × Rate 5% on $350,000: $350,000 × 0.05 = $17,500

Commission Split 50/50 split between listing and buyer's broker: $17,500 × 0.50 = $8,750 each If the listing agent receives 60% from broker: $8,750 × 0.60 = $5,250

Minnesota Deed Tax Deed Tax = Sale Price × 0.0033 (Minnesota deed tax rate = 0.33%)

Example: $425,000 sale price $425,000 × 0.0033 = $1,402.50

Note: Some questions may express this differently. 0.33% = 33 cents per $100 = $3.30 per $1,000 of purchase price.

Proration Daily rate = Annual amount ÷ 360 (or 365 if specified) Seller's share = Daily rate × Days seller owned property in the closing period

Example: Annual property taxes = $4,320. Closing August 20. Days Jan 1 through Aug 20: 7 months × 30 + 20 = 230 days Daily rate: $4,320 ÷ 360 = $12/day Seller owes: $12 × 230 = $2,760

Loan-to-Value (LTV) LTV = Loan Amount ÷ Appraised Value $260,000 loan on $325,000 home: $260,000 ÷ $325,000 = 0.80 = 80%

Down Payment Down Payment = Sale Price × Down % 15% down on $400,000: $400,000 × 0.15 = $60,000 Loan: $400,000 − $60,000 = $340,000

Gross Rent Multiplier GRM = Sale Price ÷ Monthly Gross Rent $270,000 sale price, $1,800/month rent: $270,000 ÷ $1,800 = GRM of 150

Property Tax (Mill Rate) Tax = Assessed Value × Mill Rate (Mill rate = tax per $1,000 of assessed value) Home assessed at $225,000, mill rate = 14: $225,000 × (14 ÷ 1,000) = $3,150

Practice Problems

Problem 1: A Minneapolis home sells for $515,000. Calculate the Minnesota deed tax. $515,000 × 0.0033 = $1,699.50

Problem 2: The listing broker charges 6% on a $380,000 sale and splits 50/50 with the buyer's broker. The listing agent earns 65% of the listing broker's share. What does the listing agent earn? Total commission: $380,000 × 0.06 = $22,800 Listing broker's share: $22,800 × 0.50 = $11,400 Agent's share: $11,400 × 0.65 = $7,410

Problem 3: Annual taxes are $5,760. Closing is on May 5. Using a 360-day year, how much does the seller owe at closing? Days Jan 1 through May 5: 4 months × 30 + 5 = 125 days Daily rate: $5,760 ÷ 360 = $16/day Seller owes: $16 × 125 = $2,000

Problem 4: A buyer puts 20% down on a $450,000 home. What is the LTV ratio? Down payment: $450,000 × 0.20 = $90,000 Loan: $450,000 − $90,000 = $360,000 LTV: $360,000 ÷ $450,000 = 80%

Tips for Minnesota Math Questions

PSI provides an on-screen calculator — use it for every calculation.
For deed tax: always use 0.33% (not 0.5% or 1%).
For proration: write out the days counted before calculating.
Remember the passing threshold in Minnesota is 73% — math questions you miss cost more than in a 70% state.

More Minnesota Math Practice

[CARealestate.com/states/minnesota](https://carealestate.com/states/minnesota) has deed tax and commission math practice questions. 5 free questions — no signup needed.

Minnesota Real Estate Exam Math Practice