Practice, Math, and Disclosures Practice Question
Question
A client wants to know what should be documented in writing in a Florida real estate transaction involving proration math. Which answer best reduces transaction risk? (Item 230)
Answer choices
- A. The requirement matters only if the buyer uses lender financing.
- B. Allocate taxes, rent, insurance, or expenses between buyer and seller.
- C. The salesperson may handle the matter independently without broker involvement when compensation is expected.
- D. Local custom controls even when a statute, regulation, contract, or disclosure rule applies.
Correct Answer
B. Allocate taxes, rent, insurance, or expenses between buyer and seller.
Explanation
The correct answer is B because proration math requires candidates to allocate taxes, rent, insurance, or expenses between buyer and seller. The other options rely on unsafe assumptions about custom, oral agreement, escrow, client preference, or independent salesperson authority and do not reflect sound Florida exam practice.
Question details
- Difficulty: medium
- Domain: Practice, Math, and Disclosures
- Objective: proration math