Rhode Island Real Estate Exam Math: Transfer Tax, Commission & Proration

Math questions appear throughout Rhode Island's 120-question exam.

Rhode Island Transfer Tax **Rate**: $2.28 per $500 of consideration. - **Example**: $385,000 sale: $385,000 / $500 x $2.28 = 770 x $2.28 = **$1,755.60** - **Example**: $525,000 sale: $525,000 / $500 x $2.28 = 1,050 x $2.28 = **$2,394**

Commission **Example**: Property sells for $420,000. Commission 5.5%, split 50/50. Agent earns 55% of listing side. - Total: $420,000 x 0.055 = $23,100; Listing: $11,550 - Agent: $11,550 x 0.55 = **$6,352.50**

Proration (360-day year) **Example**: Taxes $3,240. Closing June 30. - Daily: $3,240 / 360 = $9/day; Seller's days (Jan–Jun): 180 - Seller's credit to buyer: 180 x $9 = **$1,620**

Cap Rate **Example**: Providence rental generates $27,000 NOI. Cap rate 5.5%. - Value = $27,000 / 0.055 = **$490,909**

Net to Seller **Example**: Seller wants $330,000 net after 5% commission. - Sale Price = $330,000 / 0.95 = **$347,368.42**

[Practice Rhode Island math at CARealestate.com/states/rhode-island](https://carealestate.com/states/rhode-island)