Exam 3

The Civil Rights Act of 1866 prohibits discrimination in housing based on: A. race B. religion C. sex D. handicap

A. race

When a leasehold tenancy is terminable immediately by notice of either party, the tenancy is known as a: A. tenancy at will B. tenancy at sufferance C. tenancy for a period D. periodic tenancy

A. tenancy at will

Jim holds $800 in security deposits from the six tenants in his apartment building when he sells the building to Harry. The tenants can expect a return of their security deposits from: A. Jim at closing B. Harry upon termination of the lease C. the person who conducted the closing D. Jim upon completion of tenancy

B. Harry upon termination of the lease

During the initial "rent-up" of an apartment building, which of the following practices would violate the federal fair housing laws? A. Rejecting a prospective tenant because the tenant is known to be a highly litigious lawyer. B. Rejecting a physically handicapped prospective tenant because the apartment interior doors and hallways are too narrow for wheelchair access. C. Using a rental application which inquired into the applicant's credit history D. Rejecting a prospective tenant on the basis of his/her intention to house a pet cat or dog.

B. Rejecting a physically handicapped prospective tenant because the apartment interior doors and hallways are too narrow for wheelchair access.

A broker negotiates a "sale-leaseback" agreement on behalf of a client. After the buyer locates acceptable financing, the sale closes. Who will be the tenant? A. The buyer B. The seller C. The lender D. The broker

B. The seller

A provision within a lease granting the tenant the right to purchase the leased property at the same price as it is offered to a prospective purchaser is called: A. an option clause B. a first right of refusal clause C. a "subject to" clause D. a "take-out" clause

B. a first right of refusal clause

A property manager is typically: A. a universal agent B. a general agent C. a specified agent D. a special agent

B. a general agent

The property most likely to be rented under the terms of a percentage lease is: A. a residential condominium in a retirement community B. a retail store in shopping center C. a cooperative apartment D. a manufacturing plant in an industrial park

B. a retail store in shopping center

When a lessee transfers a portion of his/her remaining interest in a lease to another party, it is called; A. novation B. a sublease C. an accession D. accord and satisfaction

B. a sublease

While spending six months in Europe, a tenant continues to pay rent to her landlord but actually collects rent from her friend, who is living there until the tenant returns to finish the term of the lease. This situation is known as A. an assignment of lease B. a sublet C. a lease option D. a right of reverter

B. a sublet

An unscrupulous real estate broker began soliciting listings in the Honeydew subdivision. The broker told homeowners that a "non-white" had moved into the area, that as a result it was likely the area would soon become a mixed neighborhood, and that property values would decline. The broker suggested that if the owner listed now, perhaps the property could be sold before the neighborhood deteriorated. The broker's actions constitute: A. a legitimate attempt to keep potential sellers informed B. blockbusting or panic peddling C. steering D. acceptable marketing

B. blockbusting or panic peddling

The Rockland Corporation leases office space under a 5-year lease which calls for monthly rent payments based on an annual charge of $20.00 per gross square foot. The building owners provide custodial services and pay the costs for property insurance, repairs to the building and real estate taxes.m Which of the following would best describe this type of lease? A. net lease B. gross lease C. percentage lease D. ground lease

B. gross lease

The lessee's interest is called the: A. leased fee interest B. leasehold interest C. reversionary interest D. remainder interest

B. leasehold interest

It is illegal for a lending institution to refuse to make a residential real estate loan in a particular area only because of the A. economic situation of the applicant B. location of the property C. applicant not being of legal age D. deteriorated condition of the premises

B. location of the property

When a tenant voluntarily gives up possession of the leased premises to the landlord prior to the expiration of the lease, it is called: A. abrogation B. surrender C. premature D. subrogation

B. surrender

To file a complaint of discrimination, the complainant must A. be able to prove that discrimination occurred B. suspect that discrimination occurred C. be able to prove that the discrimination was intentional D. be able to produce witnesses to the discrimination

B. suspect that discrimination occurred

Rent would best be defined as: A. the contractual consideration to a third party B. the consideration for the use of real property C. all monies paid by the lessor to the lessee D. the total amount owed under the terms of a lease

B. the consideration for the use of real property

Generally, an oral lease for five years is: A. illegal B. unenforceable C. a short term lease D. renewable only in writing

B. unenforceable

The agency responsible for enforcing the Fair Housing Act is the A. Department of Justice (DOJ) B. Federal Housing Administration (FHA) C. Department of Housing and Urban Development (HUD) D. Department of Veteran Affairs (VA)

C. Department of Housing and Urban Development (HUD)

The lessor and lessee have agreed to a lease term of 5 years. How could the lessor ensure that the rental income during the term is reflective of the market conditions? A. Negotiate a new lease each year B. Collect an additional security deposit C. Negotiate an index lease D. Negotiate a gross lease

C. Negotiate an index lease

The lease that would be the least affected by the death of either party is: A. tenancy at sufferance B. tenancy for life C. an estate for years D. a periodic tenancy

C. an estate for years

The leasehold estate which is characterized by a fixed period of time is: A. an estate at will B. a periodic estate C. an estate for years D. an estate at sufferance

C. an estate for years

The term "definite duration" refers to: A. a life estate B. an estate at will C. an estate for years D. a periodic tenancy

C. an estate for years

the tenant leases a heated apartment, but the landlord fails to provide heat because of a defective heating system. The tenant vacates the premises and refuses to pay any rent. This is an example of A. abandonment B. actual eviction C. constructive eviction D. lessor negligence

C. constructive eviction

An owner-tenant relationship would most likely be established by: A. joint tenancy B. tenants in common C. periodic estate D. tenancy by the entirety

C. periodic estate

A broker managing properties owned by himself and others should: A. put all security deposits and rents for his and other's properties in the same trust account B. put all security deposits and rents for his and clients' properties in his general operating account C. put all security deposits and rents for others in a trust account separate from the trust account containing security deposits and rents from his own properties D. put all security deposits from others' and his own properties in one trust account and all rents from others' and his own properties in another trust account

C. put all security deposits and rents for others in a trust account separate from the trust account containing security deposits and rents from his own properties

The landlord dies 7 years after he/she has signed a 10 year lease. The lease is now: A. automatically terminated B. voidable at the option of lessee C. unaffected D. voidable at the option of executor or administrator of the deceased

C. unaffected

A prospective home buyer who is black inquires about the availability of a home in a predominately white residential neighborhood. What should the broker say to this prospect? A. "You wouldn't want to live in this area because the neighbors are trying to protect the integrity of the area" B. "I'd be happy to show you homes in other areas where black people are welcome." C. "The residents here have expressed a desire to keep the area homogeneous with no minorities." D. "I'll be pleased to show you any houses that you're interested in and that meet your financial qualifications."

D. "I'll be pleased to show you any houses that you're interested in and that meet your financial qualifications."

An aggrieved party may file a complaint with HUD for an alleged violation of the Fair housing Act if he/she believes illegal discrimination has occurred within: A. 6 months from the date of the alleged occurrence B. 180 days from the date of the alleged occurrence C. 2 years from the date of the alleged occurrence D. 1 year from the date of the alleged occurrence

D. 1 year from the date of the alleged occurrence

Discrimination based on familial status was prohibited with the passage of the A. Civil Rights Act of 1866 B. Civil Rights Act of 1964 C. Fair Housing Act of 1968 D. Fair Housing Amendments Act of 1988

D. Fair Housing Amendments Act of 1988

A lease would be terminated by which of the following? A. The sale of the leased premises B. The death of the tenant C. The abandonment of the leased premises by the tenant D. The expiration of the term of the lease.

D. The expiration of the term of the lease.

The principal difference between an estate for years and an estate from year to year is that: A. an estate for years is a life estate. B. an estate for years cannot be terminated C. an estate from year to year must be in writing D. an estate from year to year has no expiration date

D. an estate from year to year has no expiration date

A broker fails to perform as promised under a property management contract. This would be best described as: A. willful omission B. fraudulent behavior C. misrepresentation D. breach of agency

D. breach of agency

By means of an oral agreement, the landlord of a commercial business center leased an office space to an encyclopedia sales company for a 6-month period. The first month's rent was paid and the company moved in. One week later, the landlord realized the company's activities were causing more vehicle traffic than anticipated. Fearing the other tenants in the center might complain at the sudden lack of parking spaces, the landlord notified the encylcopedia company that their lease was being unilaterally terminated. The company refused to vacate and continued per the terms of the lease. The landlord: A. has a right to terminate the lease because a business lease must be in writing B. has the right to terminate the lease because the company's activities constitute a constructive nuisance C. has the right to terminate the lease because the company's activities constitute constructive eviction D. cannot unilaterally terminate the lease until the 6-month lease term has expired.

D. cannot unilaterally terminate the lease until the 6-month lease term has expired.

The commercial lease likely to be the most advantageous for the owner would be a: A. periodic lease B. holdover lease C. gross lease D. net lease

D. net lease

The real estate broker has qualified a prospective buyer and determined he/she is financially able to purchase property costing up to $150,000. While looking through the listing book, the prospect expresses an interest in touring a very exclusive property listed for $475,000. The broker suggests that they confine their viewing to properties within the buyer's price range. Pursuant to the federal Fair Housing Act, the broker would be guilty of: A. discrimination B. blockbusting C. steering D. nothing

D. nothing

The first line of a homeowner's advertisement appearing in the company newsletter reads 'For Sale to Minorities Only.' Pursuant to the Fair Housing Act this is an example of illegal: A. blockbusting B. discrimination C. redlining D. steering

D. steering

The practice of channeling families with children away from some buildings where other families with children reside is A. most practical B. blockbusting C. redlining D. steering

D. steering

The Liberal Bank had several defaults in the Happy Acres subdivision on its multi-family mortgages. For this reason, they decided not to make further multi-family loans in that particular neighborhood until they could investigate why the delinquencies occurred. The decision of Liberal Bank is lawful because: A. the federal Fair Housing Act does not cover banks B. developments larger than one-to-four family housing are not covered by the act. C. redlining is not prohibited by the act D. the lender's moratorium is not based on a discriminatory intent.

D. the lender's moratorium is not based on a discriminatory intent.

When a tenant sublets all or any part of the premises rented under a written lease: A. the tenant assigns all right, title, and interest in the rented property to the new lessee B. the sublessee becomes primarily responsible to the landlord for the payment of rent and maintenance of the property C. the original lease is automatically canceled and the sublessee takes possession of the property on a month to month basis D. the original lease is unaffected unless it contains a provision that prohibits such subletting

D. the original lease is unaffected unless it contains a provision that prohibits such subletting