Chapter 5 Review Questions
The civil rights act of 1968 prohibits A. retaliating acts against those making fair housing complaints B. premises that have barriers to persons with a disability C. controlled business arrangements D. kickbacks
A landlord cannot retaliate by eviction or cutting services for fair hosing complaints
Brokers are protected from conversion of trust funds by their salespersons with A. Bonding B. The state surety fund C. Errors and omissions (E&O) insurance D. The state licensing law
A. A. Fidelity bond would indemnify the broker for any loss
A lessor allowed a residential rental to become uninhabitable. Which of the following is FALSE? A. There is now an estate at sufferance B. The tenant can terminate the lease C. The landlord cannot collect rent D. The tenant may be entitled to damages
A. An estate of sufferance is a holdover tenant
A landlord collects rent after knowing the tenant breached a material provision of the lease. THe landlord A. Has waived the breach B. Can proceed with eviction based on the breach C. Can insist on compliance with the breached provision D. Has created an estate at will
A. And lost right to evict for breach
An owner wants to structure the lease to provide income benefits like an nudity but also wants inflation protection. To a long-term net lease, she added a provisions relating to A. The Consumer Price IndexB. EMF C. A right of firs refusal D. Quiet enjoyment
A. Consumer price index reflects inflation, so rent keeps the same purchasing power
The fine for a non-willful single OSHA violation may be A. $5,000 B, $20,000 C. $25,000 D. $100,000
A. Fine may be up to $12,675
Three broker agreed that they would not deal with a. Particular agent. They are subject to a fine because they violated A. The Sherman Antitrust Act B. FIRREA C. The Fair Housing Act D. OSHA
A. Group boycottt
Owners wish to list an expensive home but insist that the home be sold to Caucasians only. THe agent should A. refuse the listing B. explain that it is unlikely that non Caucasians can afford the house C. advise the owners to sell it themselves D. accept the listing and ignore the owners request
A. If an owner or other agent sold it based on racial discrimination, they would violate fair housing laws
Under the 1988 amendment to the civil rights act of 1968, an apartment owner is acting within the law by A. refusing to pay for modifications to an apartment that would allow a person with a disability the full enjoyment of the unit B. asking whether a renter has a disability and attempting to determine its severity C. refusing to make reasonable accomodations in rules, policies, practices, or services to allow a person with a disability equal opportunity to use a dwelling D. refusing to rent to a person whose disability is mental rather than physical
A. It is the disabled persons responsibility to modify the unit
A tenants commercial lease was not terminated when the lessor's interests were lost by foreclosure. The lease contained A. A non disturbance clause B. An anti merger clause C. A subordination clause D. A holdover provision
A. Otherwise a prior lien foreclosure would wipe out the lease
J leased to K, who subleased to L. Th lease between K and L could be regarded as A. A sandwich lease B. An assignment C. A master lease D. An option
A. Subleases are called sandwich lease
A buyer is protected against a tenants claim of set offs against rent because the tenant signed A. An estoppel certificate B. a nondisturbance clause C. an antimerger clause D. a subordination clause
A. Tenant acknowledges the lease and that he has no claims. To offset rent
The supreme court case Jones v Mayer upheld the validity of A. the civil rights act of 1866 B. the civil rights act of 1964 C. the civil rights act of 1968 D. the 1988 Fair housing amendments act
A. The 1968 case decision was the same years as the fair housing act
In determining rental rates and security deposit requirements, a landlord may properly A. Require an increased security deposit for tenants with pets B. Require an increased security deposit for tenants with children C. Provide that single person occupancy will be entitled to a $100 reduction in rent D. Have a monthly surcharge of $25 above the basic rent per resident
A. The others discriminate based on familial status
An african American was denied a rental in an owner occupied duplex that the owner was advertising for rent. The owner indicated that he would only rent to Caucasians. Which federal law did the owner violate? A. civil rights act of 1866 B. civil rights act of 1964 C. civil rights act of 1968 D. 1988 fair housing amendments act
A. While an exemption under the 1968 act, the 1866 act has no exemptions for racial discrimination
A lessor wants a tenant to protect the lessor from claims of others based on problems concerning the premises. What type of insurance does the lessor want the lessee to carry? A. General liability B. Errors and omissions C. Homeowners D. Fire and extended coverage
A. With the landlord as a named insured
Persons or. Groups specifically exempted from discriminatory practices by the Civil Rights Act of 1968 include A. All nonprofit groups B. Religious groups limiting leases on nonprofit housing to members of its religion C. Owners of furnished units D. Hotel and motel operators
B . However religious groups are not exempt under the 1866 act as well as many state housing laws
A lessee has a right that will exist only if the lessor is willing to make a deal. What is this right? A. An option B. A right of first refusal C. A non disturbance agreement D. An stopped certificate
B. A lessee has the right to meet an offer that the owner is willing to accept from another
The civil rights act that applied only to race was A. the civil rights act of 1968 B. the civil right act of 1866 C. the equal credit opportunity act D. the civil rights act of 1964
B. All citizens have the same rights to housing regardless of race
Failure of a broker to post an Equal Housing Opportunity poster could result in A. automatic revocation of the brokers license B. evidence of broker discrimination C. suspension of the brokers license D. criminal penalties
B. Broker would have to prove there is no discrimination
A property manager was penalized because the manager remitted rent received to an owner. The reason for the penalty was a violation of A. OSHA B. FIRPTA C. RESPA D. The Dodd Frank Act
B. Failure to withhold when the owner is a foreign national
In the course of a sale a buyer state, "This is what I Want-a home on a full acre so I can legally keep a horse." The agent knew the parcel was only half an acre but failed to correct the buyer
B. Fraud can be a negative and in failing to correct a mistaken belief
IRS Form 1099 must be given by the property manager for service providers paid A. $500 o more B. $600 or more C. $1,000 or more D. $10,000 or more
B. IRS reporting
In renting residential units, a property manger may properly A. charge families higher security deposits than single renters B require tenants with a disability who remove interior doors for accessibility to restore the premises at the end of a lease C. refuse to rent to a pregnant women D. designate adult and family sections in an apartment complex
B. If a person with no disability would not want the alteration
A listing did not require the listing broker to use diligence in locating a buyer. The listing was A. A net listing B. An open listing C. An exclusive agency listing D. An exclusive right to sell listing
B. It is a unilateral agreement
Civil Rights Act of 1964 had limited effect because A. of narrow court interpretation B. it was limited to housing where there was government assistance C. it only applied to racial discrimination D. it was limited to commercial property
B. It was the first step toward fair housing in minders times
G leased a commercial building to S for 10 years. After six months, S moved out without notice, G advertised for a tenant, G's actions relate to A. liquidated damages B. mitigation of damages C. punitive damages D. severance damages
B. Lessor has a duty to keep tenants damages as low as reasonably possible
Which of the following terms in an advertisement would violate the Civil rights act of 1968? A. master bedroom B. one child OK C. Mother-in-law suite D. Bachelor apartment
B. Limiting family size but not total occupancy
Under the Uniform Residential Landlord and Tenant Act, landlords must provide garbage receptacles A. For all residential renters B. If there are four or more units C. If there are one to four units D. For all furnished rentals
B. Otherwise the tenant supplies garbage receptacles
A lease where a lessee comes a lessor is A. A sale-leaseback B. A sublease C. An assignment D. An option lease
B. Tenant gets her own tenant
A broker has installed ramps over stairs to her office, moved furniture for easier access within the office and installed a paper cup dispenser by the water fountain. She performed these actions to comply with A. title VIII of the civil rights act of 1968 B. the americans with disabilities act C. the civil rights act of 1964 D. the 1988 fair housing amendments act
B. The ADA required access to places of public accommodation
A tenant on a long term lease purchased the building from his landlord and resold it to investors at. A profit. Making no mention of lease rights. The lease was terminated by A. Commercial frustration B. Merger C. Surrender D. Recordation
B. Then the tenant purchased the property, the lease ceased
A landlord served a tenant with an unlawful detainer action because the tenant called a building inspector regarding a code violation. The landlords action was A. Constructive eviction B. Retaliatory eviction C. Peremptory eviction D. Proper
B. This is a defense against an unlawful detainer action
Redlining refers to a refusal to A. advertise in a designated areas B. loan in designated areas C. list in designated areas D. cooperate with other agents in designated areas
B. Violation of the civil rights act of 1978
In soliciting listings of homes in an area where minorities had recently purchased homes, a broker told his salespeople to solicit only Caucasian owners for listing because they will likley want to leave the area. This action is regarded as A. steering B. blockbusting C. redlining D. intimidation
B. While subtle, the broker is inducing owners to sell based on entry of minority groups to the area
An owner refused to sell even though the broker brought in a full-price offer that met all terms of the exclusive right to sell listing. The broker is entitled to A. Specific performance B. Compensatory and punitive damages C. The agreed commission D. Either compensatory and punitive damages or the agreed commission
C. Broker is only entitled to the agreed commission.
An example of constructive eviction is A. A tenant who refuses to pay rent B. A tenant being given a notice to quit or pay rent C. A landlord cutting of the tenants heat and water D. A tenant who remains in possession after termination of the lease
C. Constructive eviction is wrongful conduct by a landlord that interferes with a. Tenants quiet enjoyment. The tenant may vacate and end the lease obligation
Because the value of a property has dramatically increased, it is in the economic BEST interest of a tenant on a long term lease who no longer needs the space to A. assign the lease B. surrender the premises C. sublet D. abandon the premises
C. Could subject for higher rent than currently charged
A broker has protection from a clients slip and fall in her office under her A. errors and omissions insurance B. workers compensation coverage C. general liability coverage D. extended coverage fire policy
C. Covers premises injury to others
An apartment owner was in violation of Fair Housing Act because A. there were no specific accommodations for children B. children were excluded from the pool without adult supervision C. there was one section for adults and another section for families D. all residents were 55 years old
C. Discrimination as to units. Does not matter that housing is available elsewhere
G gave an exclusive right to sell listing to H. While the listing was in effect, agent J located a buyer and received a full commision from G. H has the right to A. Half of J's commission B. A listing fee from J C. A full commission from G D. 50% of the agreed commission from G
C. Does not legally have to accept any split
The uniform Residential Landlord and Tenant Act provides tat the tenant A. can agree to hold the landlord harmless for actions of the landlord B. may apply the security deposit to the last months rent C. may not unreasonably withhold permission for the landlord to enter the premises D. will make the repairs necessary to keep the premises fit for habitation
C. Entry must be fore reasonable purpose with reasonable notice
A landlord can charge a tenant extra if the tenant A. is disabled B. receives rent from public assistance C. has a pet D. has a child
C. Extra charge is allowed unless it's a support animal
An exculpatory clause in a lease means that A. All repairs will be made by the tenant B. The lease cannot be assigned C. The tenant will not hold the landlord liable for damage or injury D. The tenant is entitled to quiet enjoyment
C. Hold-harmless clause
What are a tenants rights. Under a lease when a prior lien forecloses and the buyer at foreclosure wishes to occupy the unit? A. The lease ended with the foreclosure, and the tenant is entitled to a 30 day notice B .the lease continues until expiration C. The tenant is entitled to a 90 day notice to vacate D. The tenant is entitled to the value of the unexpired lease term
C. If the buyer did not wish to occupy the unit, the lease would survive
THe term unlawful detainer is used in connection with A. a trustee B. a lender C. a tenant D. an agency
C. It is a formal eviction procedure
A broker repeated information he received from an owner as to income and expenses. After the sale was completed, the buyer discovered the data provided was false. The buyer MOST likely would sue A. The seller B. The broker C. The seller and the broker D. No one because of the caveat emptor
C. Normally they go after everyone involved. The broker was likely negligent, and the owner misrepresented facts
According to the Americans with disabilities act, a place of public accomadation refers A. one to four residential unit buildings B. any residential unit C. nonresidential facilities D. government owned properties
C. Open for business to the public
Which of the following describes a sublease? A. The sublease becomes the tenant of the lessor B. The entire leasehold is transferred C. The sublease is a tenant of the lessee D. The sublease becomes primarily liable on the lease
C. Original lessee is liable on the lease and the sublease is liable to the sublessor
A landlord may enter leased premises without tenant notification A. when the tenant is behind in rent payments B. anytime during daylight hours C. only in an emergency D. if the landlord beliees the premises are being used for an illegal purpose
C. Otherwise, reasonable notice is required
To accomodate a person with a disability the term "readily achievable" means if A. at all possible B. possible at no additional cost C. possible without unreasonable expense D. the cost is less than 1/2% of the property value
C. Possible without prohibitive expense
An owner of a desirable housing complex has a long waiting list of prospective tenants. THe owner has a policy where widows of veterans who were killed in action are moved to the top of the list. THe owner should be concerned with which of the following laws? A. soldiers and sailors civil relief act B. americans with disabilities act C. civil rights act of 1968 D. civil rights act of 1866
C. Preference based on familial status and sex
A biracial family inquires about a home in a predominately white area. The agent should A. Explain the problems their presence in the neighborhood could cause B. Inform the owners of the buyers racial status before showing C. Treat the prospective buyers the same as anyone else D. Attempt to interest the prospects in homes in integrated areas
C. The other acts are steering
A property manager would LEAST likely accept as a compensation A. a set montly fee B. a percentage of the gross C . a percentage of the net D. rental fees
C. There may be no net
Which of the following is regarded as the federal fair housing act? A. civil rights act of 1866 B. civil rights act of 1964 C. civil rights act of 1968 D. americans with disabilities act
C. This was a comprehensive fair housing act
Vicarious liability refers to A. liability of owners as to crimes of tenants B. state liability for actions of licensees C. liability of employers for acts of employees D. liability of wrongdoers for their actions
C. Within the scope of employment. Also applies to agency
A property manager is in trouble because of compensation received. THis compensation was A. a percentage of the gross B. a fee for leasing C. a fee for supervising repairs D. a kickback from a supplier
D property manager cannot make a secret profit. Fiduciary violation
A white couple responded to a brokers ad for a property in a predominantly minority neighborhood. The broker should A. Try to direct them to another property in a white neighborhood B. Explain that the neighborhood is predominantly minority C. Tell the prospects they will be uncomfortable in the neighborhood D. Show the property
D, another act is steering, which is prohibited by the Civil Rights Act of 1968
A residential tenant on a long term lease learned that a prior mortgagee foreclosed on the property. While the new owner does not intent to occupy the leased premises, the tenant should understand that A. The tenancy is now month to month B. A 90 day notice to vacate will end the tenancy C. Here is a tenancy at will D. The lease remains valid
D. According to the protecting tenants at foreclosure act of 2009
A protected group under federal fair housing law is A. poor people B. blue collar workers C. drug addicts D. alcoholics
D. Alcoholism is a covered disability. While owners can prohibit intoxication they cannot refuse to rent to alcoholics
A residential lease has an implied covenant of A. Acknoledgement B. Exculpating C. Merger D. Habitability
D. Also an implied covenant of quiet enjoyment
A CPM diseignation applies to A. Appraisal B. Property inspection C. Mortgage bankers D. Property management
D. Certified property manager
A broker prepared a lease by cutting and pasting clauses from other leases and drafting paragraphs for other matters. The broker A. Must have the CPM designation B. Has failed to exercise due diligence C. Must have the GRI designation D. Is guilty of the unauthorized practice of law
D. Drafting a legal document
An owner may properly refuse to rent to a prospective tenant because the prospective tenant A. Has AIDS B. Has a mental disability C. Is an alcoholic D. Is a drug addict
D. Drug addiction es excluded from disability protection
While an exclusive agency listing was in effect and the agent was diligently seeking a buyer, the owner sold the property. The agent is entitle to A. Full commission B. Half of the commission C. Listing commission only D. No commission
D. Exclusive. Agency allows owners to sell
A property managers contract calls for 4.5% of the rent with a montly minimum of $200. THe gross income for March was $11,000, but operations expenses were $9450 and fixed expenses totaled $3840. The property managers fee for March was A. $0 B. $94.50 C. $200 D. $496
D. Fee is based on gross not net
An agreement whereby the lessee gives premises to the lessor before the expiration of the lease, thus ending lease obligations, is A. An eviction B. An unlawful detainer C. A foreclosure D. A surrender
D. If the landlord accepts it as a surrender, all future obligations end
A salesperson listed her home with her broker. She then changed brokers. The listing A. Was terminated B. Went with her to her new broker C. Remains her personal property D. Remains with the former broker
D. Listings are the property of the broker
A woman's renal ad stated, "No communists, tall people, night watchmen, or disabled need apply." Which exclusion specifically violates fair housing law? A. communists B. tall people C. night watchment D. disabled
D. Person with disabilities are protected
A broker may properly A. advertise a property only in papers sold to a particular racial group B. refuse to handle mortgage loans in a designated area C. quote different terms to prospects of different ethnic backgrounds D. refuse to rent to families with minor children in senior citizen communities that are limited to residents age 62 or older
D. Senior housing exception
An exclusive agency listing provided for a commission of $0.06. The owner found a buyer for $1 million. The broker is entitled to A. 6% of the sales price B. $0.06 C. Arbitration as to the amount of commission D. Nothing
D. Since it was an exclusive Gary listing, an owner made the sale
The americans with disabilities act has access requirements for A. all employers B. employers having 5 or more employees C. employers having 10 or more employees D. employers having 15 or more employees
D. Small business employers are excluded from the act
A for rent advertisement may properly state A. adults preferred B. children under five years of age welcome C. retired lady preferred D. walk to work
D. Stating preferences is discrimination
FIRPTA withholding by a property manager for foreign owners of rental property is A. 10% of net income B. 10% of gross income C. 30% of net income D. 30%of gross income
D. Ten percent applies to sales
Broker L, who manages property for M, approaches tenant N for back rent a day after M dies. N refuses to pay. The broker should A. Give N statutory notice to quit or pay rent B. Start an unlawful detainer action C. Turn the matter over to a collection attorney D. Take no further action
D. The agency agreement terminated with the death of the prinicipal
If members of a minority racial group live next door to the home that prospective buyers are interested in, you should A. inform the prospective buyers B. inform the prospective buyers only if they indicated an animosity to the group C. treat it as a benefit and tell the buyers of the advantages of living in a mixed racial area D. ignore the presence of a minority neighbor
D. The mention of the minority neighbor would likely be steering
In accordance with the uniform residential landlord and tenant act, a lessor may property require that the tenant A. pay a security deposit equal to two months rent B. agree to a limitation on the owners liability C. pay any lessor attorney fees arising from a dispute D. restrict use of the premises to residential purposes
D. Unless the lease authorizes another use
Partial lease interest may be transferred by a lease. This is A. A step lease B. A gross lease C. An assignment D. A sublease
D. While an assignment transfers entire e=interest, a sublease can transfer partial interest
THe effect of a lease assignment is that A. the entire lease interest is transferred B. The assignee makes rent payments to the assignor C. the assignee is a tenant of the assignor D. the assignor remains primarily liable on the lease
The assignee makes rent payments to the original lessor
A lease prohibited assignment or subletting without the owners prior approval. The lessee assigned without asking the lessor. The assignment is A. void B. voidable C. unenforceable D. illegal
The owner can accept assignment or consider it a reach
