UNIT 1: REAL ESTATE LAW UNIT QUIZ

Which topic would NOT be acceptable for continuing education? A. appraisal B. escrow requirements C. property management D. sales techniques

D. Offerings in office and business skills, such as advertising or sales techniques, would not be appropriate for continuing education.

Which is NOT a protected class under the Illinois Human Rights Act? A. grandparents raising their grandchildren B. order of protection status C. sexual orientation or gender identity D. source of income

D. Source of income is protected under the Equal Credit Opportunity Act, but not under the Illinois Human Rights Act.

Which of the following describes the Supreme Court decision in Plessy v. Ferguson (1896)? A. A court may not constitutionally enforce a "restrictive covenant" which prevents people of certain race from owning or occupying property. B. Arabs, Greeks, and other ethnic groups are protected. C. Racial discrimination is prohibited by any party in the sale or rental of real estate. D. The court ruled in favor of a "separate but equal" doctrine of legalized racial segregation.

D. Thirty years after the Civil Rights Act was enacted, in Plessy v. Ferguson (1896), the Supreme Court ruled in favor of a "separate but equal" doctrine of legalized racial segregation.

All are types of disciplines that can apply to real estate licenses EXCEPT A. probation. B. reprimand. C. termination. D. transfer.

D. Transfer of sponsorship is not a type of discipline. The types of discipline include reprimand, probation for a period with various possible conditions, suspension for a period, indefinite suspension for a period, revocation, termination, refusal to renew a license, and/or refusal to issue a license.

Any licensee whose license has expired for more than _________________ is not eligible for renewal of that license. A. 180 days B. 2 years C. 3 years D. 4 years

B. Any licensee whose license has expired for more than two years is not eligible for renewal of that license.

When does an Illinois real estate managing broker license expire? A. April 30 of each even-numbered year B. April 30 of each odd-numbered year C. December 31 of each even-numbered year D. December 31 of each year

B. Managing broker licensees must complete and pass all continuing education requirements then renew their licenses before April 30 of each odd-numbered year.

A broker is taking a listing and the seller states that he wishes to sell only to members of a particular race. Of these options, what do you think would be the broker's best response? A. comply with the seller's wishes B. refuse to take the listing C. say he must consult with his broker before making a decision D. take the listing but ignore the seller's request

B. Racial discrimination is prohibited by the federal Fair Housing Act and the Civil Rights Act of 1866. Failure to comply constitutes an unlawful act.

What is the maximum amount a claimant with a valid judgment may be able to recover from the Real Estate Recovery Fund? A. up to $15,000 plus court costs and reasonable attorney's fees B. up to $25,000 plus court costs and reasonable attorney's fees C. up to $50,000 plus court costs and reasonable attorney's fees D. up to $100,000 plus court costs and reasonable attorney's fees

B. A claimant with a valid judgment from the court may be able to recover up to $25,000, plus court costs and reasonable attorney's fees.

A landlord is exempt from the policies of the federal Fair Housing Act A. at all times; federal Fair Housing laws apply only to sales of property, not to leasing of property. B. never; a landlord is not exempt from the laws governing fair housing. C. when leasing to families with children. D. when the lease is for less than 18 months.

B. A landlord is not exempt from the laws governing fair housing. Anyone who is selling or leasing residential property must abide by these rules.

What is NOT a requirement to apply for an initial real estate managing broker license in Illinois? A. 21 years old B. certificate licensure for at least one year as a real estate broker or salesperson C. completion of prelicensing education or admittance to the Illinois Bar D. never have had a license revoked in any jurisdiction

B. An applicant for licensure must have certification of licensure for at least two (2) of the preceding three (3) years as a real estate broker or salesperson.

To be eligible to take the state exam for a real estate broker license, an applicant must complete a minimum of ___________ hours of education. A. 75 B. 90 C. 100 D. 120

B. An applicant for licensure must have completed a minimum of 90 hours of prelicensing education.

To be eligible for a broker license in Illinois, a new applicant must A. be at least 18 years old. B. be of good moral character. C. have completed a minimum of 80 hours of prelicensing education. D. have two years of experience working as a personal assistant in the real estate industry.

B. An applicant for licensure must provide vidence of good moral character. The other statements are not correct.

Antitrust laws are in place to ensure that A. all monies in financial transactions are accounted for. B. competition in the marketplace is fair and unrestrained. C. licensees have a minimum level of education and training to protect the public. D. no one is discriminated against because of race, sex, or national origin.

B. Antitrust laws were enacted to ensure that there are no restraints on trade.

Who must be licensed as a broker under Illinois law? A. Amy, who has keys made for a sponsoring broker's company listing B. Bruce, who holds open houses to market real estate to the public for a sponsoring broker C. Cassie, who sits at a sponsoring broker's property for a broker tour not open to the public D. Doug, who places signs on properties for a sponsoring broker

B. Bruce is performing an activity that requires a license. The others are performing activities that an unlicensed personal assistant can perform.

At a local convention of real estate licensees, broker Dan mentioned that he was going to have to raise his commission rates or close his office. Dan could be found guilty of A. allocation. B. price-fixing. C. securities violations. D. nothing; he did not violate any rules or laws.

B. Even the appearance of discussing fees could be considered an example of illegal price-fixing.

Marge is a broker at Bob's Brokerage. Which of these phrases is LEAST LIKELY to be evidence of her conspiracy to commit an antitrust violation? A. "Let's do something about Top's discount fee policy." B. "No one will show your house for less than 6 percent." C. "Our brokerage charges 7%, but I can talk to Bob about lowering that." D. "This is my neighborhood. Tell him to go sell somewhere else."

C. All of these phrases could get a real estate licensee into severe trouble. Antitrust laws must be taken very seriously.

Which appointee must hold a currently valid real estate broker license which must be surrendered to the Department during their appointment? A. any Advisory Council member B. any Real Estate Administration and Disciplinary Board member C. the Real Estate Coordinator D. the Secretary of the Real Estate Administration and Disciplinary Board

C. Article 25 of the Illinois Real Estate License Act establishes the creation of a Real Estate Coordinator. The Real Estate Coordinator is appointed by Secretary of the Real Estate Administration and Disciplinary Board. The Real Estate Coordinator must hold a currently valid broker license which must be surrendered to the Department during the appointment.

Sally was interested in renting the other half of an owner-occupied duplex. She called a broker about it who told her that the owner, his client, does not allow children. Who, if anyone, is violating fair housing laws in this situation? A. the broker B. the owner C. both the broker and the owner D. neither the broker nor the owner

C. Both are in violation. Once the owner chose to use a real estate licensee, the exemption to familial status was no longer available to him.

An owner of an apartment complex may deny housing to children if A. 80% of residents are over 62 years of age. B. 80% of the residents are over 65 years of age. C. 100% of the residents are over 62 years of age. D. 100% of the residents are over 65 years of age.

C. Exempt senior housing facilities and communities can lawfully refuse to sell or rent dwellings to families with minor children if the facility is intended for and solely occupied by persons 62 years or older.

In order to be eligible for a pay out from the Real Estate Recovery Funds, a wronged individual should notify the IDFPR in writing within ____ days of the intention to commence an action for a judgment. A. 2 B. 5 C. 7 D. 10

C. Failure to notify the IDFPR in writing within 7 days of the commencement of an action may preclude any recovery from the fund.

Which household does NOT qualify as a protected class under the familial status clause? A. grandparents raising their grandchildren B. pregnant woman C. retired couple over 65 D. single mother with three toddlers

C. Familial status refers to households that include individuals under the age of 18 who either live with parents or legal custodians. This protection also extends to pregnant women or any person in the process of obtaining legal custody of a child under the age of 18.

Which ruling by the Supreme Court of the United States upheld the Civil Rights Act of 1866, confirming that one can NEVER discriminate on the basis of race or color? A. Brown v. Board of Education B. Buchanan v. Wharley C. Jones v. Alfred H. Mayer Co. D. Plessy v. Ferguson

C. The Jones v. Alfred H. Mayer Co. ruling in 1968 prohibits any racially based discrimination in housing.

A disabled individual, confined to a wheelchair, would like to rent an apartment. The disabled individual states that the property would need to be made handicapped accessible. Which of the following options would not be lawful in this situation? A. The landlord makes the renovations, but requires the tenant to pay the actual cost of the materials. B. The landlord makes the renovations to the property at the landlord's expense. C. The landlord refuses to allow the individual to make the renovations to the apartment. D. The landlord requires the tenant to make the renovations at the tenants own expense and requires the tenant also return the property to its original condition at the end of tenancy.

C. The federal Fair Housing Act requires landlords and owners to make provisions for handicap accessibility, but it does not require the landlord to bear the expense of the renovations. The landlord is also allowed to require the property be returned to its original condition upon termination of occupancy.

A disabled individual applies to rent an apartment and states that the property would need to be made handicapped accessible. Which action would not be lawful in this situation? A. The landlord makes the renovations, but requires the tenant to pay the actual cost of the materials. B. The landlord makes the renovations to the property at the landlords' expense. C. The landlord refuses to allow the individual to make the renovations to the apartment. D. The landlord requires the tenant to make the renovations at the tenants own expense and requires the tenant also return the property to its original condition at the end of tenancy.

C. The federal Fair Housing Act requires landlords/owners to make provisions for handicap accessibility, but it does not require the landlord to bear the expense of the renovations. The landlord is also allowed to require the property be returned to its original condition upon termination of occupancy.

What is the name of the fund that can provide compensation for people who have been harmed by a licensee's negligence? A. Real Estate Audit Fund B. Real Estate License and Administration Fund C. Real Estate Recovery Fund D. Real Estate Research and Education Fund

C. The function of the Real Estate Recovery Fund is to provide a means of compensating people who have been harmed by a licensee's negligence.

If a managing broker's license is revoked, the sponsoring broker has___________ days to designate a new managing broker. A. 7 B. 10 C. 15 D. 21

C. The sponsoring broker has 15 days to replace the managing broker without consequence.

All are potential expressions of steering EXCEPT A. "I think you'd be more comfortable in another more familiar neighborhood." B. "I think you'll be right at home here, this building is filled with elderly people." C. "I hope you'll like this house." D. "Don't you think this neighborhood is a little low-rent for you?"

C. This hopeful statement is perfectly acceptable. The other choices are all examples of steering.

Brokers Rob and Bonnie are having dinner when Bonnie mentions she's having trouble getting listings in a particular part of town. Rob says he's happy to handle all the listings in that neighborhood if she agrees to quit trying to land clients there. In exchange, he'll send prospective clients her way if they live closer to her business. This is an example of A. boycotting. B. price-fixing. C. territory allocation. D. tying in.

C. When two brokers agree to divide territory or customers, they are engaging in the illegal practice of allocation of territory.

Which was the first federal law to prohibit business practices considered to be harmful to consumers? A. Clayton Antitrust Act B. Federal Trade Commission Act C. Sherman Antitrust Act D. Unfair or Deceptive Acts or Practices Law

73. C. The Sherman Antitrust Act of 1890 was the first federal law outlawing practices considered harmful to consumers, such as monopolies.

Broker James is considered to have an affiliated business relationship with a title company to whom he refers business if he has an ownership interest of more than A. 1%. B. 5%. C. 10%. D. 25%.

A. According to RESPA, an affiliated business arrangement is a situation where a person in a position to refer settlement services has either an affiliate relationship with or a direct or beneficial ownership interest of more than 1% in a provider of settlement services and who then refers business to that provider.

Broker Ben owns several timeshare properties at a lakeside resort. He would like Fred, the maintenance man who lives nearby and takes care of Ben's properties for him, to help show available properties to prospective timeshare owners and provide them information about rates and terms. Under Illinois law, to perform this function for Ben, A. Fred must be licensed as a broker. B. Fred must be licensed as a leasing agent. C. Fred must be licensed as a managing broker. D. Fred must reside in one of the properties to perform this function.

A. According to the Illinois Real Estate License Act, to perform this function, Fred must be licensed as a broker.

When does an Illinois real estate broker license expire? A. April 30 of each even-numbered year B. April 30 of each odd-numbered year C. December 31 of each even-numbered year D. December 31 of each odd-numbered year

A. Brokers must complete and pass all continuing education requirements then renew their licenses before April 30 of each even-numbered year.

What is steering? A. leading prospective homeowners to or away from certain homes B. refusing to make loans to certain areas because of their ethnic makeup C. refusing to help prospective buyers locate housing because of their race, color, religion, national origin, handicap, or familial status D. suggesting an owner should sell now because property values are expected to decline as more and more minorities infiltrate the area

A. Steering relates to buyers or renters and is defined as channeling prospective buyers or renters to or away from specific neighborhoods based on their race (or religion, national origin, or other protected class), to maintain or change the character of a neighborhood.

Any person who commits a first offense of acting as a leasing agent without being licensed under the Illinois Real Estate License Act can A. apply for a probationary license while waiting for a hearing. B. be charged with a Class A misdemeanor. C. be charged with a Class 4 felony. D. seek the immediate endorsement of a sponsoring broker.

B. Any person who practices, offers to practice, attempts to practice, or holds oneself out to practice as a real estate broker, managing broker, or leasing agent without being licensed under the Illinois Real Estate License Act has committed a Class A misdemeanor (first offense).

Who is NOT required to be licensed? A. Andrew who negotiates a real estate transaction via email correspondence. B. Helen, who sets an appointment with a client to view a property. C. Mark, who shows a client through a property being sold by an owner. D. Paula, who hosts a public open house on behalf of a sponsoring broker.

B. Setting an appointment with a client does not require being licensed.

What is the maximum amount of money that can be awarded in a civil violation of the American with Disabilities Act for a first offense? A. $25,000 B. $50,000 C. $100,000 D. unlimited

B. The Department of Justice may assess a civil penalty not to exceed $50,000 for a first violation.

Steve is one of three brokers accused of boycotting. What did Steve and his fellow co-conspirators do? A. They agreed to charge the same commission for specific services. B. They decided to avoid showing clients homes listed by Easy Realty. C. They divided up their town into four quadrants so that each could focus on their specific area. D. They included a clause in their listing contracts requiring clients to use Thomas Title Co.

B. When two companies conspire to deny business to a competitor, they could be accused of illegal boycotting.

Property managers in Illinois must be licensed real estate brokers if they A. answer the phone at the property. B. collect and deliver keys for the property. C. collect rent for the property. D. perform improvements or repairs on the property.

C. A property manager who collects rent must be licensed as a broker. Performing the other functions listed would not require the property manager to be licensed.

Alice believes that she is the victim of housing discrimination. Which of the following would NOT be an appropriate action to pursue? A. Alice should file a complaint with HUD by going to the closest HUD office. B. Alice should file a complaint with a state or local fair housing agency. C. Alice should file a complaint with the local sheriff. D. Alice should file a written complaint with HUD by writing a letter directly to HUD.

C. Alice should either work with a national, state, or local fair housing agency when pursuing a fair housing complaint.

Employers are obligated to comply with the Americans with Disabilities Act in places of employment where there are _________ or more employees. A. 5 B. 10 C. 15 D. 20

C. Employers are expected to comply with the Americans with Disabilities Act when there are 15 or more employees in place of employment.

Which act defined gender/sex as a protected class? A. Civil Rights Act of 1866 B. Title VIII of the Civil Rights Act of 1968 C. The Housing and Community Development Act of 1974 D. The Fair Housing Amendments Act of 1988

C. Gender was added as a protected class in 1974 with the passage of the Housing and Community Development Act.

Of these, which would be grounds for discipline under the Illinois Real Estate License Act? A. acting as a dual agent B. agreeing to a reduced commission to close a sale C. participating in panic selling D. using the logo of an organization of which the licensee is a member in an advertisement

C. It is unlawful to participate in panic selling or blockbusting. Acting as a dual agent so long as all parties involved are properly informed and have consented, agreeing to a reduced commission or using a membership logo in an advertisement are all acceptable practices.

Which applicant's personal situation would LIKELY result in denial of licensure as a broker under the Illinois Real Estate License Act? A. Erin, who is only 21 years old and still a college student B. Frank, who had a felony conviction for assault 10 years ago C. George, who is currently in arrears for delinquent state income taxes D. Hannah, who is currently making payments against on a delinquent unpaid hospital bill

C. Of these personal situations, the fact that George has not paid his property taxes would likely result in a denial because it is evidence of financial irresponsibility and does not demonstrate evidence of good moral character.

Which sentence can be used as a memory device to recall each of the protected classes under the federal Fair Housing Act? A. Anyone Can Buy a Sweet House From a Realtor. B. Fast Sales Can Really Make Houses Affordable. C. Realtors Can Really Sell Houses Fast Now. D. Smart Real Estate Professionals Know How to Sell.

C. Realtors (Race) Can (Color) Really (Religion) Sell (Sex) Houses (Handicap/Disability) Fast (Familial Status) Now (National Origin).

A minority applicant applies to a mortgage company for a home loan and is refused based on the reputation of the neighborhood for a high number of foreclosures. This is an example of what illegal practice? A. blockbusting B. puffing C. redlining D. steering

C. Redlining is a refusal to make loans or issue insurance policies on property located in a particular neighborhood for discriminatory reasons (effectively, drawing a red line around an area).

What is the maximum fine that may be imposed by the IDFPR? A. $5,000 B. $10,000 C. $25,000 D. $50,000

C. The IDFPR may assess a fine not to exceed $25,000 per licensee as a result of a formal hearing.

Which is NOT a cause for disciplinary action? A. allowing a real estate license to expire for more than five years B. attempting to cheat on the licensing exam or assist someone else in doing so C. being convicted of a felony in federal court D. making a false or fraudulent representation in attempting to obtain a license

A. Allowing a license to expire is not a cause for disciplinary action unless the person continues to practice real estate without a valid license.

As amended in 1988, the federal Fair Housing Act allows for a fine up to what amount for a single first offense to be imposed by an administrative law judge? A. $10,000 B. $25,000 C. $50,000 D. $75,000

A. An administrative law judge is limited to imposing a fine up to $10,000 for a single first offense. A federal court judge may impose a fine of up to $25,000 for the same offense.

Which group is composed of five members appointed by the Governor? A. Advisory Council B. Bureau of Real Estate Professions C. Division of Professional Regulations D. Real Estate Administration and Disciplinary Board

A. Article 30 of the Illinois Real Estate License Act establishes the creation of The Advisory Council. The Council is composed of five members appointed by the Governor.

How many hours of prelicensing education are required to apply for a leasing agent license? A. 15 B. 45 C. 60 D. 75

A. For prelicensing education, a leasing agent is required to complete 15 hours of instruction in an approved course of study related to the leasing of residential real property.

Under the Illinois Real Estate License Act, an employee of a brokerage is required to be licensed if he A. hosts a home show fair booth on behalf of the brokerage. B. places yard signs on properties on behalf of the brokerage. C. records and deposits earnest money on behalf of the brokerage. D. submits listings to a Multiple Listing Service on behalf of the brokerage.

A. Hosting an open house, a home show kiosk, or fair booth on behalf of a brokerage would require an employee to be licensed under the Illinois Real Estate License Act.

Licensee Al wants to appeal a decision by the Real Estate Administration and Disciplinary Board. The first step he must step he must take to initiate a review is to petition the A. Circuit Court of the county in which he lives. B. Illinois Department of Financial and Professional Regulation. C. Illinois State Appellate Court. D. Real Estate Coordinator.

A. Proceedings for judicial review are commenced in the Circuit Court of the county in which the party applying for review resides.

Donna, a licensed real estate broker, receives a fee for every client she refers to a mortgage company that results in loan. Is this permitted? A. No, this would be considered an illegal kickback under RESPA. B. Yes, it's permitted if she discloses the fee arrangement to the client when she makes the referral. C. Yes, it's permitted if she discloses the fee arrangement to the client before the sale is finalized. D. Yes, it's permitted as long as she does not require the client to use that mortgage company.

A. RESPA prohibits a real estate broker or agent from receiving anything of value, such as a fee or commission, for referring business to a settlement service provider.

Of these, which would NOT be considered an action that the Department could take when disciplining a licensee? A. impose a jail term not to exceed 10 days B. petition the court for an injunction C. require a broker to have a medical examination D. restrict a broker's access to an escrow account

A. The Department has no authority to impose a criminal penalty such as imprisonment.

Sponsoring broker Valerie's license was revoked for an ongoing issue related to failure to secure client escrow funds. The licenses of her affiliated brokers are A. automatically inoperative. B. revoked if they do not find a new sponsoring broker within 15 business days. C. temporarily suspended. D. not affected.

A. The licensees of all sponsored licensees are automatically inoperative and sponsored licensees must secure a properly completed 45-day sponsor card from another qualified sponsoring broker in order to resume practice.

When a judgment amount is paid from the Illinois Real Estate Recovery Fund on behalf of a licensee, the licensee's license is A. automatically terminated until the money is repaid to the Fund. B. immediately placed in probationary status for the remainder of the two-year license period. C. permanently revoked without possibility of reinstatement. D. temporarily transferred to the sponsoring broker's name until the money is repaid to the Fund.

A. When a judgment amount is paid from the Fund on behalf of a licensee, the licensee's license is automatically terminated, until such time as the money is repaid to the Fund, plus interest. Bankruptcy of the licensee does not discharge liability to the Fund.

Which situation describes blockbusting? A. A bank refused to lend to residents of certain neighborhoods because of their racial makeup. B. A broker moves a minority person into a neighborhood with the intent of buying other houses in the neighborhood at a greatly reduced price. C. A salesperson shows a minority client only properties in areas mostly populated by the same minority. D. Despite the all-Caucasian character of a neighborhood and the implication the seller would like to see it remain that way, the broker insists on showing

B. It is defined as "Inducing or attempting to induce, for profit, any person to sell or rent property based on representations made regarding entry into the neighborhood of persons of a particular race, color, religion, sex, or national origin." Blockbusting is also referred to as panic selling or panic peddling.

Jane works as a clerical assistant for a brokerage company. Under the Illinois Real Estate Act, Jane is required to be licensed if she A. arranges for keys to be picked up for an open house. B. explains the terms of a sales agreement to a client. C. follows up on completing paperwork for a client after the contract has been signed. D. responds to phone inquiries from customers about prices by quoting directly from published information.

B. Jane is required to be licensed in order to interpret or explain the terms of a sales agreement. Jane may perform the other activities described as an unlicensed employee of a brokerage.

Jason, a real estate broker, also owns the mortgage company his buyer chooses. Which of the following is true under RESPA? A. Jason must advise his buyer to select a different mortgage company. B. Jason may refer the buyer to his mortgage company as long as he discloses his interest in the company to the buyer. C. Jason may not refer buyers to his mortgage company, but if the buyer chooses the company independently, this is permitted, as long as Jason discloses his interest in the company. D. Jason may not refer buyers to his mortgage company, but if the buyer chooses the company independently, Jason has no obligation to disclose his interest in the company.

B. Real estate brokers and mortgage companies may have an interest in each company so long as the real estate broker discloses its relationship with the joint venture company when it refers a customer to the mortgage broker or title company.

Bob owns a single-family home that he rents out. In order to be exempt from federal fair housing laws, all of these requirements must be met EXCEPT that he A. does not use a real estate professional. B. owns no more than two one- to four-family homes. C. owns no more than three single-family homes. D. uses no discriminatory advertising.

B. Single-family housing is exempt from federal fair housing laws if the owner owns no more than three such homes at one time, no discriminatory advertising is used, and no real estate professional is used. This is also known as the Mrs. Murphy Exemption.

23. Michelle has been accused of breach of her agency obligations and has been notified of an upcoming hearing. How long does she have to file a written response to the charges levied against her? A. 10 days B. 20 days C. 30 days D. 45 days

B. The accused then has 20 days to file a written response to the charges.

Violet, who is six months pregnant, tries to rent an apartment in a six-unit building with access to a shared swimming pool. The property manager rejects her application citing insurance liability concerns of having small children in the building. Does his refusal violate the federal Fair Housing Act? A. no, because safety is a legitimate reason for rejecting a rental applicant B. no, because residential buildings with six units or less are exempt from the federal Fair Housing Act C. no, because the federal Fair Housing Act doesn't apply to discrimination by real estate brokers D. yes, because discrimination based on familial status was a factor in the manager's decision

D. A woman who is pregnant is considered part of the familial status protected class. Unless the exemption criteria are met, it is unlawful to discriminate based on the fact that Violet will soon have a child living with her.

Broker Bryn has been accused of conflict of interest by working with buyer client Jack to purchase a house owned by her sister without disclosing her relationship. What action could lead to an investigation by the Real Estate Administration and Disciplinary Board? A. Client Jack files a complaint against Bryn. B. The broker who is listing Jack's current house for sale files a complaint against Bryn. C. The IDFPR makes a motion for an investigation. D. All of the above

D. Anyone can file a complaint that could lead to an investigation, as well as a motion from the IDFPR. The Board could also investigate on its own initiative.

Which of the following is NOT included as a protected class by the federal Fair Housing Act? A. handicap B. national origin C. religion D. sexual orientation

D. As of today, the federal Fair Housing Act prohibits discrimination in housing based on "race, color, religion, sex, national origin, disability, or familial status in the sale or lease of residential property."

Broker Dan talks with his friend Jane, a financial analyst, and Jane suggests that she will refer her clients who need real estate related services to Dan. Dan is glad to have the extra business. In appreciation, Dan may A. direct a fee is paid out of closing to Jane. B. give Jane a flat screen TV. C. pay a referral fee to Jane. D. tell Jane, "Thank You."

D. Broker Dan can give Jane his thanks. All of the other choices would constitute illegal kickbacks or referral fees which violate RESPA.

Which act defined familial status as a protected class? A. Civil Rights Act of 1866 B. Title VIII of the Civil Rights Act of 1968 C. The Housing and Community Development Act of 1974 D. The Fair Housing Amendments Act of 1988

D. Familial status was added as a protected class in 1988 with the passage of the FairHousing Amendments.

As specified in Article 25 of the Illinois Real Estate License Act, who serves as Chair of the Real Estate Administration and Disciplinary Board? A. The board member who is elected by the voters chairs the Board. B. The board member who the Governor appoints chairs the Board. C. The Governor who is elected by the voters of Illinois chairs the Board. D. The Real Estate Coordinator who is appointed by the Secretary chairs the Board.

D. One of the duties of the Real Estate Coordinator who is appointed by Secretary of the Real Estate Administration and Disciplinary Board is to act as Chairperson of the Board, without vote.

Which building is NOT EXEMPT under Title III of the American with Disabilities Act? A. Elks Club B. historical buildings at Colonial Williamsburg C. Presbyterian church D. state capitol building

D. Places of worship, private clubs, and historical buildings are exempt; however, historical buildings must still comply with the "maximum extent feasible." Although civil penalties may not be assessed in cases against state or local government, there is no exemption for these facilities.

Seller Stu refused to sign a sales contract unless buyer Beth agreed to use Stu & Associates Title Company. Beth really wanted that house and so agreed. The fee for the title insurance was $400. If she later chooses to sue Stu for violating RESPA, how much can she ask for? A. She cannot sue under RESPA since she agreed to the terms. B. She can only sue for the amount she paid, $400. C. She can sue for up to two times what she paid, $800. D. She can sue for up to three times what she paid, $1,200.

D. Section 9 of RESPA prohibits a seller from requiring the homebuyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.

Who would NOT be considered a disability as defined by the federal Fair Housing Act? A. a amputee who must use a wheelchair B. a child with AIDS C. a man with mental illness who takes anti-psychotic drugs D. a woman addicted to methamphetamine

D. Someone illegally addicted to a controlled substance is not considered disabled and is not a member of that protected class.

When considering the Real Estate Recovery Fund, the maximum liability arising out of multiple acts by any one licensee is ___________________________ and by any one unlicensed employee of a licensee is ___________________________. A. $50,000 / $25,000 B. $50,000 / $50,000 C. $100,000 / $50,000 D. $100,000 / $100,000

D. The maximum liability arising out of multiple acts by any one licensee or one unlicensed employee of a licensee is $100,000.

Upon termination of employment, A. the licensee sends their original license to the Department. B. the sponsoring broker sends the original license to the Department. C. the sponsoring broker signs the license and issues a new sponsor card to the licensee. D. the sponsoring broker signs the license, keeps a copy, and gives the original license to the licensee.

D. The sponsoring broker signs the license, keeps a copy, and then gives the original license to the licensee to facilitate the transfer of sponsorship.

All of the following would be considered examples of prohibited acts of misrepresentation or fraud under the Real Estate Licensing Act EXCEPT A. acting as an attorney for either the buyer or the seller in the same transaction in which the licensee has acted as a broker. B. acting as a broker for more than one party in a transaction without providing written notice to all parties. C. acting as a broker or salesperson in a retail sales establishment from an office that is not separate and distinct from the main retail area. D. acting as a designated agent of a sponsoring broker for a buyer when the seller is represented by a designated agent who is employed by the same sponsoring broker.

D. Two licensees who work for the same ponsoring broker may be assigned to represent a buyer and a seller in a real estate transaction. As designated agents, each licensee owes statutory duties to his or her respective client. The other situations all constitute prohibited practices.

All are exempt from licensing requirements under the Illinois Real Estate Act EXCEPT A. Garth, an attorney, who negotiates terms of a real estate transaction for a client as a secondary matter in representing his client. B. Laura, the owner of a timeshare unit, who receives compensation from the timeshare development company for her referral of between five (5) and ten (10) purchasers a year. C. Tam, who is selling an immediate family member's home as part of his duties as executor of a will. D. Vivian, a closing agent, who receives referral fees from a sponsoring broker for providing leads that result in sale of real estate by licensees of his company.

D. Vivian's activities would require her to be licensed under Illinois law.

According to the Fair Housing Act, which owner, if any, could refuse to rent to someone on the basis of race? A. Kate, who rents out the spare bedroom in her house B. Lisa, who owns and leases a four-unit apartment building C. Paul, who rents out several houses that he owns D. No one is exempt.

D. You can never discriminate on the basis of race or color.