Real Estate MathIntermediateDelaware Exam

A Delaware property sells for $400,000. The total transfer tax is 3%. What is each party's share if split equally?

Q: A Delaware property sells for $400,000. The total transfer tax is 3%. What is each party's share if split equally?

Total transfer tax = $400,000 × 0.03 = $12,000. Split equally: $12,000 ÷ 2 = $6,000 each for buyer and seller.

A$6,000 eachCorrect

B$12,000 each

C$4,000 each

D$8,000 each

Why $6,000 each Is Correct

Answer A: $6,000 each

Total transfer tax = $400,000 × 0.03 = $12,000.

Exam Tip: Real Estate Math

Math questions are formula-based. Memorize the key formulas: commission splits, proration, cap rate (NOI ÷ Value), GRM (Price ÷ Gross Rent), and LTV (Loan ÷ Value). Practice converting between annual and monthly figures.

Key Real Estate Math Terms in This Question

Transfer Tax

A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.

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