Reference no: EM132833643

Problem 1: Rents on a duplex total $600 monthly and are due the first of each month. If the sale of the duplex closes on the 15th of a month, the rental income will be reflected on the closing statement as a

a. Debit to the seller of $300 and a credit to the buyer of $300
b. Credit to the seller of $300 and a debit to the buyer of $300
c. Credit of $600 to the seller only
d. Credit of $600 to the buyer only

Problem 2: An owner who lives out of state contacts a licensee who is in the state where the owner's property is located. The owner hires the licensee to sell the property for $150,000. The licensee realizes that the land is in an area that has recently been rezoned for a higher use. He tells the owner he will purchase the property himself. He does so, and, 3 weeks later, sells the same property for $175,000. Which of the following statements about this situation is correct?

a. The licensee cannot legally act as an agent for an owner who lives out of state without either an active license from that state or the help of a cooperating out-of-state licensee
b. Since the property sold at a profit within 6 months after the purchase, the licensee must inform the owner of his selling price
c. The licensee can legally purchase the property only after informing the owner of the zoning change and how it will affect the property.
d. As long as the licensee has informed the owner of his intentions to purchase the property himself, his actions are proper and legal