DRE EXAM CH 5 REVIEW QUESTIONS WITH CORRECT ANSWERS 2025

DRE EXAM CH 5 REVIEW QUESTIONS
WITH CORRECT ANSWERS 2025
1.DWhichDofDtheseDpersonsDorDentitiesDmayDnotDengageDinDtheDescrowDbusiness?

D a)DADrealDestateDbroker.

D b)DADdomesticDorDforeignDcorporation.

D c)DADprincipalDinDtheDtransaction.

D d)DAnDattorney.D-DCORRECTDANSWERD-c.



ADprincipalDinDtheDtransactionDcannotDperformDasDanDescrowDagentDinDtheDsameDtransactionDasDth
eyDareDnotDimpartialDorDneutral



EscrowDcalculatesDprorationsDbasedDonD_________DdaysDinDaDyear.

D a)D300

D b)D360

D c)D365

D d)D370D-DCORRECTDANSWERD-b.D360D

EscrowDworksDonDaD30DdayDmonthDmultipliedDbyD12Dmonths.DThus,DforDtheDpurposeDofDcalculatingD
prorations,DescrowDconsidersDthereDtoDbeD360DdaysDinDaDyear



WhichDofDtheDfollowingDwouldDmostDlikelyDresultDinDtheDterminationDofDaDrealDestateDsalesDescrow
?

D a)DTheDmutualDagreementDofDtheDbuyerDandDtheDseller.

D b)DTheDrevocationDbyDtheDbrokerDforDtheDbuyer.

D c)DTheDdeathDofDtheDseller.

Dd)DTheDcancellationDofDtheDescrowDbyDtheDseller.D-DCORRECTDANSWERD-
a.DTheDmutualDagreementDofDtheDbuyerDandDtheDseller.D

,EscrowDcanDbeDcancelledDbyDmutualDagreementDbetweenDbothDprincipals,DnotDunilaterallyDbyDone
Dparty.DTheDbrokerDisDnotDaDpartyDtoDtheDescrow,Dtherefore,DtheyDcannotDauthorizeDtermination.DIn


DtheDeventDofDtheDdeathDofDeitherDparty,DtheirDestateDisDstillDresponsibleDforDperforming




WhichDofDtheDfollowingDwillDnotDterminateDanDescrow?

D a)DAgreementDofDtheDparties.

D b)DTheDbroker'sDorderDtoDterminateDescrow.

D c)DOneDofDtheDparties'DinabilityDtoDmeetDaDcontingency.

d)DTheDdestructionDofDtheDpropertyDduringDtheDescrowD-DCORRECTDANSWERD-
D


b.DTheDbroker'sDorderDtoDterminateDescrow.D

TheDbrokerDisDnotDaDprincipalDtoDtheDescrowDandDthereforeDhasDnoDauthorityDtoDcancelDit.DADmutua
lDagreementDbetweenDtheDpartiesDorDtheDfailureDofDaDcontingencyDtoDoccurDwillDcancelDtheDescrow,
DasDwillDtheDdestructionDofDtheDpropertyDduringDtheDescrow




InDanDescrowDstatement,DtheDtermD"recurringDcosts"DisDinDreferenceDto:

D a)DtitleDinsuranceDfees.

D b)DinsuranceDprorations.

D c)DimpoundDaccountDitems.

D d)DrecordingDfees.D-DCORRECTDANSWERD-c.DimpoundDaccountDitems.D



"Recurring"DmeansDcostsDthatDwillDrepeat.DInDthisDquestion,DonlyDimpoundsDareDrecurring



AnDimpoundDaccountD(alsoDcalledDanDescrowDaccount,DdependingDonDwhereDyouDlive)DisDsimplyDan
DaccountDmaintainedDbyDtheDmortgageDcompanyDtoDcollectDinsuranceDandDtaxDpaymentsDthatDareD


necessaryDforDyouDtoDkeepDyourDhome,DbutDareDnotDtechnicallyDpartDofDtheDmortgage



EscrowDclosesDonDtheD16thDdayDofDFebruaryD(28Ddays).DTheDsellerDreceivesD$500DinDrentDforDtheDm
onthDofDFebruary.DTheDseller:

, D a)DowesDtheDbuyerD$250.

D b)DowesDtheDbuyerDmoreDthanD$250.

D c)DowesDtheDbuyerDlessDthanD$250.

D d)DkeepsDtheDentireD$500.D-DCORRECTDANSWERD-a.DowesDtheDbuyerD$250.D



Remember,DescrowDcalculatesDaDmonthDasD30Ddays,DasDstatedDinDQuestionD2DsoDdisregardDtheDrefe
renceDtoDtheDliteralDnumberDofDdaysDinDtheDmonth.DTheD16thDdayDofDtheDmonthDisDfirstDdayDofDtheD
secondDhalfDofDtheDmonthDandDthusDtheDsellerDowesDtheDbuyerDpreciselyDhalfDofD$500



WhichDisDnotDtrueDofDaDtenancyDinDcommon?

D a)DInterestsDmayDbeDunequal.

D b)DADtenantDinDcommonDmayDnotDwillDtheirDinterestDinDtheDpropertyDtoDothersDonDtheirDdeath.

D c)DAnDindividualDownerDcanDsellDtheirDinterestDwithoutDtheDconsentDofDtheDotherDtenants.

d)DTheDownerDdoesDnotDownDaDspecificDpartDofDtheDproperty.D-DCORRECTDANSWERD-
D


b.DADtenantDinDcommonDmayDnotDwillDtheirDinterestDinDtheDpropertyDtoDothersDonDtheirDdeath.D



AnswerDselectionsDA,DCDandDDDareDtrueDofDaDtenancyDinDcommon,DasDdistinctDfromDaDcommunityDi
nterestDsuchDasDjointDtenancy.DHowever,DaDtenantDinDcommonDmayDwillDtheirDinterestDinDtheDprope
rtyDtoDothersDonDtheirDdeath



ADpersonDholdingDtitleDtoDrealDpropertyDinDseveralty:

D a)DownsDtheDpropertyDwithDseveralDotherDowners.

D b)DhasDanDestateDforDyears.

D c)DtakesDtitleDwithDtheirDspouse.

d)DhasDsoleDownershipDofDtheDproperty.D-DCORRECTDANSWERD-
D


d.DhasDsoleDownershipDofDtheDproperty.D