Aceable Agent
Which of the following is NOT true regarding a license holder's obligation to disclose a property defect:
-Only if the Buyer asks
Fair Housing Act
-a federal law that prohibits discrimination in housing based upon race, color, religion, or national origin and was amended to include sex, disability, and familial status
Home Mortgage Disclosure Act
-allows HUD to spot problematic lending patterns and helps support lawsuits or other disciplinary measures
Americans with Disabilities Act
-establishes requirements for telecommunications relay services
Disclosure
-if it will help the client, the agent should share it
Equal Credit Opportunity Act
-illegal to discourage anyone from applying for credit
Obedience
-is only required if legal
Community Reinvestment Act
-requires lenders to assist their local communities by participating in community development projects
Reasonable Care
-standard is based on what most agents would do
Loyalty
-the buyer's agent should get the lowest price possible, even if it means less commission
At what age does a child living with his or her parents no longer qualify for familial status protection under the Fair Housing Act?
18, they are no longer considered a child by the Fair Housing Act and do not receive the act's protections.
Which parties need to be told if an agent is representing anyone?
A license holder must disclose orally or in writing to others of their representation of a party to a real estate transaction at the first contact.
The National Association of REALTORS® Code of Ethics consists of:
A preamble and 17 articles
Which of the following statements accurately describes the basic issues involved in the Jones v. Mayer Co. case?
A real estate company refused to sell a home because of the prospective buyer's race and was found guilty of violating the Civil Rights Acts of 1866
How often must a real estate license be renewed?
A real estate license must be renewed every two years.
Which of these tenants is protected by the Fair Housing Act?
A seeing-impaired woman who uses a service dog in a pet-free building
Which of the following is NOT one of the unethical or illegal activities performed by Ulysses?
Acting as a real estate agent without a license
Which statement is NOT true regarding death on a property?
Agents are able to disclose deaths at their discretion
Why should real estate agents refrain from giving legal advice to clients?
Agents aren't licensed to give legal advice and if they do, they could be held liable
ADA
Americans with Disabilities Act
Which of the following is an example of misrepresentation?
An agent thinks there are hardwood floors beneath the carpet of a property and implies to the buyer that there are, when in fact, there are not.
What is a protected category according to Texas fair housing laws, but not national ones?
Ancestry
Why do most brokerages fall within the scope of the ADA, and therefore must be extra careful about accessibility?
Because of their location or because they have 15 or more employees
Special Agency
Broker & Client
General Agency
Broker & Sales Agent
Universal Agency
Child & Parent or Executor of will
Which of the following phrases would be considered discriminatory if used in an advertisement?
Christian Neighborhood
What is the BEST way to avoid giving misinformation (and consequently, violating the Texas Deceptive Trade Practices-Consumer Protection Act)?
Cite a source for any information you give a client about a property
Which was the first housing discrimination protection act?
Civil Rights act of 1866
CRA
Community Reinvestment Act
HUD
Department of Housing and Urban Development
In an agency relationship, the agent owes the principal the fiduciary duties of loyalty, obedience, accounting, confidentiality, reasonable care, and what else?
Disclosure
If a lender refuses to make Harry a 30-year mortgage just because Harry is 85 years old, they will have violated:
ECOA
Sally and Fred are two single people buying a home together. The lender is threatening to deny them a loan because he does not like their lifestyle. If the lender does that, it will be a violation of the:
ECOA
ECOA
Equal Credit Opportunity Act
Ulysses did nothing wrong in instructing the mortgage company to take money out of Sam's account.
FALSE
FHA
Fair Housing Act
Families Crave Resorts Not Small Damp Ramps
Familial Status
Protected classes in the Fair Housing Act of 1968 include race, color, religion, national origin, sex, disability, and what other category?
Familial Status
Fraud vs. Misrepresentation
Fraud is intentional; misrepresentation is not. Fraud generally includes both affirmative misrepresentations and affirmative concealment, and the person making the misrepresentation is aware of the true facts.
When asked to inquire about the previous owner's death, how should Tom have responded?
He should tell his clients he's legally not allowed to inquire about the death
HMDA
Home Mortgage Disclosure Act
A tenant comes to a property manager asking to put in shower bars to accommodate their disability. When they property manager informs the landlord, the landlord balks, because the tenant is not a wheelchair user. What should the property manager do? Choose the BEST option.
Inform the landlord that not all disabilities are visible, and warn them they could be violating the Fair Housing Act by refusing accomodations
IABS
Information About Brokerage Services
What is the definition of misrepresentation?
Misrepresentation is an unintentional mistake, written or spoken.
An elderly couple is going to rent their vacant basement for extra income. The couple does not want a family with children. The couple asks their granddaughter, who is a real estate agent, to help them with finding tenants. Is this legal? Why or why not?
No, the couple is not allowed to discriminate against families with children if they are helped by their granddaughter because she is a license holder
Does misrepresentation require malicious or deceptive intent?
No, the seller, broker, or agent may be liable for misrepresentation even without malicious or deceptive intent.
Was Tom right in discouraging his clients from taking the closing documents to an attorney?
No, you should never discourage clients from seeking the advice from an attorney
Carla has clients looking for a rental property who only speak Spanish. What should she do to accommodate them?
Non-English speakers should be treated the same as English-speakers, and should therefore be shown the same properties, regardless of language. However, there are official translated lease forms that could help them understand the contract they're signing.
OLD CAR
Obedience (if legal)
How long does person who believes that they have been injured by the discriminatory practices of a real estate license holder have to file a complaint with HUD?
One Year
Using the general terms of agency law, which party is represented by another party?
Principal
What is one important difference between REALTORS and other practitioners?
REALTORS are held to a higher standard than the law by the NAR Code of Ethics
Fair Housing Act Protected classes
Race
You are working with a Black buyer, Tom, and you decide to show him homes in a neighborhood with a high Black population. This illegal act is known as:
Steering
DTPA
Texas Deceptive Trade Practices-Consumer Protection Act?
What federal act was passed to help eliminate redlining?
The Community Reinvestment Act
Which one of the following actions is most likely to be a violation of the Texas Deceptive Trade Practices-Consumer Protection Act?
The Deceptive Trade Practices Act prohibits the license holder from knowingly and/or intentionally deceiving the consumer in the selling or leasing of any real property. Providing a list of professionals to choose from does not violate the law.
What is the name given to the duties owed by agents to their clients?
The duties owed by agents to their clients are known as fiduciary duties.
If the Code of Ethics and the law conflict, which takes precedence?
The law
What is the best definition of blockbusting?
The practice of encouraging people to sell their homes due to beliefs about how the entry of a protected class will affect an area's property values
The introduction to the National Association of REALTORS® Code of Ethics is called the:
The preamble.
Landlords are required to allow tenants to make modifications to their property in order to accommodate their disability. Who's responsible for paying for these modifications?
The tenant
What is one of the major tenets in the NAR Code of Ethics?
Treat all parties fairly and honestly, not just those you represent
Under the ECOA, it is legal for a lender to ask if a borrower is separated.
True
Who is at fault for not filing the closing paperwork in a timely manner?
Ulysses (Agent)
Was it a violation for Tom to agree to inquire about the previous owner's death?
Yes, Tom's inquiry was in violation of Fair Housing Laws
Since Ulysses said he would take care of closing, did he technically do anything wrong with Sam's money?
Yes, agents should never hold onto money that does not belong to them.
The protected class of disability is defined as anyone who has:
a physical or mental impairment that affects the performance of one or more major life activities
What two important classifications were added to the list of protected classes under the 1988 Housing and Community Development Act amendment?
familial status and disability
If a salesperson has no interest in opening their own brokerage, why might they still want to get a broker's license?
for marketing purposes
What is the name of the professional organization that created the Code of Ethics?
the National Association of REALTORS