Unit 8 - Questions

Question 1

When a broker seeks a court decision to determine who should receive the funds she is holding for a buyer and seller, the court will ___________ the rival claims of the parties.
a) interpolate
b) interplead
c)implead
d) imparl

Answer 1

b) interplead

Question 2

If there is a dispute between a buyer and a seller about money being held in escrow, the broker must:
a) give the money to the purchaser
b) give the money to the seller
c) split the money equally between the parties
d) retain the money in escrow until the dispute is resolved

Answer 2

d) retain the money in escrow until the dispute is resolved

Question 3

When must a salesperson give his broker the escrow money?
a) in ten business days
b) when the seller has approved the sale
c) within two business days
d) promptly

Answer 3

d) promptly

Question 4

Which of the following is considered the completion of the transaction when a security deposit is held by a broker in an escrow account?
a) the termination of the option
b) the end of the tenancy
c) the end of the grace period
d) thirty calendar days from the effective date

Answer 4

b) the end of the tenancy

Question 5

When the brokerage company is a corporation, who has the responsibility of handling the escrow account?
a) the company treasurer
b) the broker of record
c) the broker
d) the salesperson

Answer 5

b) the broker of record

Question 6

A broker must deposit money belonging to others into an escrow account in:
a) any financial institution
b) a federally insured bank only
c) a federally or state-insured bank
d) a state-insured bank only

Answer 6

c) a federally or state-insured bank

Question 7

A broker acting as a property manager is required to hold rents that he receives for a lessor in which type of account?
a) escrow account
b)trust account
c)rental management account
d) rental operations account

Answer 7

c)rental management account

Question 8

The records of escrow accounts must contain all of the following EXCEPT
a) the date the broker received the money
b) the date the broker deposited the money into the escrow account
c) the date the buyer was given the disclosure summary
d) the date the broker withdrew the money from the escrow account

Answer 8

c) the date the buyer was given the disclosure summary

Question 9

Sam is a property management broker. He holds rent for the tenants of the apartment house he manages for the lessor, as well as a one year security deposit. What should he do with these funds?
a) deposit the rent in a rental management account and the security deposit in an escrow account
b) deposit the rent in an operating account and the security deposit in an escrow account
c) place both the rent and the security deposit into a single escrow account
d) give both to the lessee, since it is his property and his responsibility

Answer 9

a) deposit the rent in a rental management account and the security deposit in an escrow account