Vermont Real Estate Math Practice

# Vermont Real Estate Math Practice

Vermont's real estate exam includes math questions on the national section, and the state section may test Vermont-specific calculations like the property transfer tax. Here are the formulas and practice problems you need.

Core Formulas

Commission Commission = Sale Price x Rate

Vermont Property Transfer Tax Standard: Sale Price x 0.0125 = Transfer Tax Reduced rate on first $100,000 for buyer-occupied residential: 100,000 x 0.005 = $500 (fixed for that portion)

Proration Annual Amount / 365 = Daily Rate Daily Rate x Days = Party's Share

Capitalization Rate Cap Rate = NOI / Value

Loan-to-Value LTV = Loan / Purchase Price x 100

Practice Problems

Problem 1 — Vermont Transfer Tax (Buyer-Occupied): A Vermont resident purchases a single-family home for $380,000 to use as their primary residence. What is the Vermont property transfer tax?

First $100,000 at 0.5%: 100,000 x 0.005 = $500 Remaining $280,000 at 1.25%: 280,000 x 0.0125 = $3,500 Total transfer tax = 500 + 3,500 = $4,000

Problem 2 — Vermont Transfer Tax (Non-Owner-Occupied): An investor purchases a Vermont rental property for $425,000. What is the transfer tax?

All $425,000 at 1.25%: 425,000 x 0.0125 = $5,312.50

Problem 3 — Commission Calculation: A Burlington home sells for $495,000 with a 5% commission. The listing and selling brokerages split the commission equally. The selling agent receives 60% of her brokerage's share. What does the selling agent earn?

Total commission = 495,000 x 0.05 = $24,750 Each brokerage = 24,750 / 2 = $12,375 Selling agent = 12,375 x 0.60 = $7,425

Problem 4 — Proration: Annual property taxes are $4,015. Closing is April 30. Seller responsible through closing day. Using 365 days, how much does the seller owe?

Daily rate = 4,015 / 365 = $11.00/day Jan 1 through April 30 = 120 days Seller owes = 120 x $11 = $1,320

Problem 5 — Investment Cap Rate: A Vermont rental cabin has a gross annual income of $48,000 and operating expenses of $18,000. A buyer wants a 6.5% cap rate. What is the maximum price?

NOI = 48,000 - 18,000 = $30,000 Max price = 30,000 / 0.065 = $461,538

Exam Day Notes

The Vermont transfer tax calculation is particularly exam-worthy because of its two-tier structure. Practice it until the calculation is automatic. For all math questions, write your work on scratch paper before calculating — this reduces errors and makes it easier to find mistakes.