chapter 9
the most common form of business organization created buy law with separate tax rates that are different from taxes on individuals is
a corporation
which of the following is a key word used to determine whether a real estate broker is, or is not, legally entitled to a commission?
acceptance
if a property is part of a Chapter 7 bankruptcy, who must the broker contact before selling the property of the debtor? the
bankruptcy trustee
ONE major purpose of the license law for real estate salesperson and brokers is to
protect consumers from dishonest activities by real estate brokers
individuals with AIDS are
protected under the fair housing act
the civil rights act of 1866 prohibits discrimination based on
race, no exemptions
all but one of the choices in the question are exemptions regarding protected classes defined under the 1968 fair housing act. select the one that is NOT exempt
real estate brokers providing brokerage services
mutual agreement buy certain states to extend licensing privileges to each other is called
reciprocity
executives of choice bank had a meeting and each loan officer at the meeting was shown certain neighborhoods highlighted in a PowerPoint presentation. The loan officers were told NOT to make mortgage loans to people buying property in the highlighted neighborhoods. this bank is guilty of
redlinning
which of the following is FALSe regarding referral fees?
referrals cannot be offered for relocation
fiar housing laws contain some exemptions in certain situations. which of the following is NEVEr an exemption?
rental applications that ask for Ann individuals race
a business activity where there is a monopoly or conspiracy that negatively impacts another individual or company ability to do business is called a(n)
restraint of trade
an example of discriminatory advertising I the sale or rental of residential property would NOT be
"non-smokers preferred"
a fine that may be imposed through HUD for a first offense for violation of the federal fair housing act is
10,000
the civil penalty for departed discriminatory acts in violation of the fair housing act is
50,000
a tie in arrangement is
Ann agreement between a party selling a product or service with a buyer that, as a condition of the sale, the buyer will buy another product from the seller or not do business with another
which of the following Supreme Court decisions state that separate but equal facilities were unconstitutional?
Brown v. board of education
which of the following is False regarding a C corporation?
C corporations must issue publicly traded shares of stock
the federal regulatory agency that oversees human rights complaints and legislation is
HUD
real estate license are classified as independent contractors under
IRS code sections 3508 (a)(b)
if a salesperson earns $600 or more, a broker must file
IRS tax form 1099 misc.
which of the following CANNNOT bee placed in a brokers trust account?
MLS fees from agents in the office
the retirement that sex offenders register when they move into a neighborhood is mandated by
Megan;s law
Reuen is an independent contractor who wants to terminate his employment arrangement with his broker. which of the follow Is TRUE?
Reuben may do so at any time
fair housing complainnts may be referred to
U.S. department of housing and urban development
the brokers improperly pay any part of their compensation to anyone who is not licensed or who is to exempt from the license law, they violate that license law. this payment is called
a kickback
which of the following would not result in license suspension or revocation? real estate agents
accepting a commission from their sponsoring broker
a real estate broker is NOT responsible for
adhering to a commission schedule recommended by the local board of REALTORS
which of the following is not a protected class under the federal fair housing act?
age
Carlos, of Latino origin, and his wife, jasmine, and African American, live in a predominately lower income section of town and apply for a home improvement loan to Yes bank. their mortgage is paid in full, and the couple is an excellent credit risk with steady jobs. the lender refuses to give them a loan. the lender may be guilty of
all of the above (discrimination based on race, discrimination based on national origin, redlining)
which of the following is TRUE regarding online listings posted on a. brokerage firms website?
all of the answers shown
familiar status, a protected class under the Fair housing act, is defined as
an adult with childern under 18
under fair housing laws, owners of multi-unit housing can advertise
as older-resident housing if 80% of the units have persons age 55 or older
guidelines for internet advertising for real estate broker are provided by the
associated of real estate license law officials
in order to qualify under the IRS code for the independent contractor relationship, which of the following is necessary? the agent must
be licensed
a real estate agent calls several residents of a neighborhood to announce that many families of a certain minority group are moving into the neighborhood. this agent is guilty of
blockbusting
which of the following describes a trade-name broker? a(n)
broker conduction business as a sole proprietorship, using a name other than his Personal name
which of the following is not an example of housing discrimination?
buyers requesting that only two-story housing be shown to them.
according to the tax laws, which of the following business organization is not taxes as a partnership?
c corporation
the perfectos are willing to give Jennie the listing on their house, but they do not want to sell to a white couple, they claim that the family would not like their long-time neighbors who are African American. Jennie
cannot accept the listing as it is in violation of federal and state fair housing and human rights laws
which of the following inn not a penalty under the sherman antitrust act
capital punishment
the fair housing law that is interpreted to prohibit all racial discrimination with non exemptions is the
civil rights act of 1866
Ms. Martinez has inherited a home for which she has placed an ad in the newspaper for tenants. one of the applicants is African- American. she refuses to rent to this women because she prefers rents of her own national origin with who she shares a common cultural background. what is the first enacted law prohibiting discrimination that Ms. Martinez has violated?
civil rights law of 1866
the federal fair housing act does not cover discrimination in the sale or rental of
commercial property
in the salesperson- broker independent contractor relationship, which of the following characterizes allowable activities in this relationship? the salesperson
commissions are paid without deduction for taxes
moria, a real estate salesperson, placed Ann ad that read "luxury community in beautiful mountain rural area, Great for 40 somethings. perfect for adult empty nesters that are young enough to still enjoy life" this ad is discriminatory according to the fair housing act because
discriminated against families with children
which of the following activities is NNOT allowable with only a real estate license?
drawing an Installment land contract
the most important aspect of independent contractor relationship is that the
employer does not have the right to control the details of the workers performance
which of the following activities is NOT a element of Ann independent contractor relationship?
employers withhold federal. state, and social security taxes
the fair housing act of 1968 was amended in 1988 to include
familial status and mental and physical disability
bankruptcy cases are heard in
federal court
the governmental comission that has the power to declare trade practices unfair is the
federal trade commission
whether a salesperson is associated with a broker as an employee or as an independent contractor is important
for income tax purposes
which of the following activities are allowable under antitrust laws?
free competition
under IRS rules, a real estate salesperson violates his independent contractor status if he or she
has a set salary each week non matter how many sales are produced
which of the following is NOT an example of steering? showing
high-income buyer luxury properties only
delia is planning to open her own real estate office. which of the following activities is NOT necessary?
hire sales agents
under the federal fair housing act, exemptions exist for
housing for older people
Judy, an agent finds a buyer who is ready, willing, and able to buy a property, when she contracts the principals on the offer, they request information of the national origin of the buyer, what must Judy do?
if she gives this information, she has violated the federal fair housing act
to save on paperwork, broker B decided to combine the office operating account with the deposits obtained with contracts of sale. Broker B is guilty of
illegal commingling of funds
a real estate broker who convinces a party to a contract of sales break the contract in oder to subside a new contract with another party is guilty of
including a breach of contract
which of the following is NOT a discriminatory question for a lender to ask while regranting credit to an applicant?
income
according to the IRS code, real estate licenses can be qualified as which of the following?
independent contractors
a brokerage firm receives an order from the court to immediately stop soliciting listings in a certain geographic area. this order is called a(n)
injunction
a disadvantage of conduction business as a sole proprietorship instead of a corporation is the broker
is personally financially liable for debts and lawsuits against the business
dewey, cheatum, and howe savings and loan would violate the federal fair housing act by denying a loan to Seymour because of
jewish descent
protected classes under the federal fair housing act do NOT include which of the following?
lawful occupation
even though licenses may be paid through a commission arrangement uses one sales, the broker is responsible for which of the following?
maintaining records as to the gross and net profit of all transaction for a period of a time specified by the IRS and state law
protected classes under the federal fair housing act do NOT include which of the following?
marital status
Royce owns and lives in a duplex and wishes to rent out the other apartment. Royce
may not discriminate against individuals because they are of a certain race
a real estate broker's advertisement for the sale of condominium units or rental apartments containing pictures that show owners or tenants of onnnlle one race on the property
may violate fair housing law
a false statement regarding an important matter in a real estate transaction too induce someone to contract is called
misrepresentation
the Whitney's refuse to rent an apartment in their multi-family dwelling to Belinda Dual, a financially qualified tenant, who is the single mother of two children under 18. Belinda is able to meet all of the lease terms. the Whitney's are
not exempt under the federal fair housing act
limited partners in a partnership business organization are
not liable of rate debts of the partnership beyond the amount of money they have contributed
under federal fair housing laws, a lender may NOT
offer a different loan interest rate based on minority status
at the end of a lease, a person with disabilities who has made changes to the intel to fit his special needs, must
return the premises to their original condition
enforcement of the fair housing act through HUD does not include
revocation of real estate liecennsure
deposits for real restate transactions negotiated by real estate brokers may NOT be held by
sellers
the housing and community development act of 1974 added which protected class?
sex
a protected class under certain state laws, but not under the federal fair housing act, is which of the following?
sexual orientation
the American with disabilities act does not cover
single-family homes
which of the following is NOT taxed as a partnership?
sole proprietorship
which of the following business structures create unlimited liability for the owners?
sole proprietorship and general partnership
broker Jerry brought prospective buyers to a certain community because he felt they would be happier due to their ethnic origin. this violation of the feral fair housing act is called
steering
a prospectus is used in connection with a(n)
stock offering
although licensees are independent contractors, the broker still has which of the following duties? to
supervise the activities of licensee in his firm
a disadvantage of a C corporation as a form of business organization is that it is
taxed on both the corporate and shareholder level
individuals posing as prospective home seekers, but who are actually volunteers who investigate equal treatment buy brokerage firms are known as
testers
which of the following is NOT prohibited under the federal hair housing act?
testers
which of the following statement is FALSE regarding the civil rights act of 1866?
the 1866 law was declared null and void after the civil war
which of the following need not be followed to preserve the independent contractor status?
the license can bee compenstated according to the hours worked
with a corporation, stockholders are liable
to the extent of their investment
the supreme law of our country is the
us consititionn
if a seller request that a real estate salesperson not show the sellers property to minorities, the salesperson should
withdraw from the listing relationship