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Real estate calculations become easier when you name the base first: the sale price for a commission, the original cost for a profit percentage, or the annual expense and number of days for a proration.
Florida’s FREC Course I syllabus covers sales commissions, profit or loss percentages, prorations, and transfer-tax calculations. These examples teach the setup; they are original practice problems, not questions from a state exam. Read each problem’s assumptions before you calculate.
1. Commission: which amount gets multiplied?
A home sells for $450,000. The hypothetical brokerage agreement provides a 5% total commission. Calculate the amount paid to the brokerage:
The commission is a percentage of the sale price in this example. If a problem separately asks for an associate’s share, use the split it gives you: at a hypothetical 70% share, $22,500 × 0.70 = $15,750. The split is applied after you find the total commission.
There is no universal commission rate or associate split. Work from the terms stated in the problem or the actual agreement.
2. Profit percentage: what is the starting base?
An investor buys for $300,000 and sells for $360,000. Ignore other costs for this practice problem. The gain is $60,000, but the question asks for percentage gain on the original price:
Divide by the original cost because that is the starting amount. Dividing by the sale price would answer a different question. Actual investment returns can also include expenses, financing, and holding costs.
3. Proration: who owes which days?
Assume a May 1, 2027 closing, annual property taxes of $3,650, a 365-day year, and a problem that gives the closing day to the buyer. The seller is responsible for January 1 through April 30: 120 days.
120 seller days × $10 = $1,200
For this example, the seller gives the buyer a $1,200 credit for the seller’s portion of the unpaid annual tax. A different closing date, leap year, tax estimate, or closing-day convention changes the answer.
Before doing any proration, underline what period is being divided and who owns the closing day. The question or contract supplies those assumptions.
4. Land area: divide the whole section
One section contains 640 acres. A quarter-section has 640 ÷ 4 = 160 acres. Half of a quarter-section is 160 ÷ 2 = 80 acres. Follow the fractions in order; “half of a quarter” means one-eighth of the whole section.
Try one without looking ahead
A property sells for $500,000. The problem states a 4% total brokerage commission and a 60% share of that commission for the associate. How much is the associate’s share?
Show the setup and answer
$500,000 × 0.04 = $20,000 total commission. Then $20,000 × 0.60 = $12,000 associate share. The second percentage applies to the commission, not to the sale price.
FastPass offers more exam-style practice alongside Course 1 certification. If you already hold a valid school certificate, use the separate Exam Prep Only option for state-exam practice.
Official source
Daniel Larson Training · Instructor: Daniel Larson (#ZH1003217) · Syllabus checked September 25, 2026
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