REAL ESTATE PRACTICE: CH 14-23

The fine for a first violation of the federal Fair Housing Act could be as much as?

$16,000.00

Civil penalties for the violation of Fair Housing Act may result in an amount not to exceed what?

$55,000. for first offense & $110,000. for second and subsequent offense

Penalties through the Fair Housing Act are $16,000.00 for the first offense, $ second offense within 5 years, and how much for the third offense?

$70,000.00

What are the 5 common law fiduciary duties?

1. Care 2. Obedience 3. Accounting 4. Loyalty 5. Disclosure COALD

an individual who violates antitrust laws can face up to a fine of $1 million and/or up to how many years in jail?

10 years

Up to how many months can licensees call consumers whom they have established a business relationship after the last purchase, delivery or payment?

18 months

Under the Clayton Act injured parties may be awarded up to how much of the amount of damages sustained, attorney fees, and other litigation costs?

3 times

At what age is a person considered elderly according to the federal government?

62

An independent Real Estate Contractor, according to the IRS must meet certain requirements including having a license, a contract with the broker that specifies that the licensee will not be treated as an employee for federal tax purposes, and that what percentage of the licensees income must be based on sales production (not the number of hours worked) ?

90%

A person who has a physical or mental impairment which limits one or more major life activities is referred to as what?

A disability.

What is the relationship between a real estate licensee (agent) and the parties represented by the agent in the real estate transaction.

Agency

Who is the person who is authorized to act on behalf of another?

Agent

Acts as a point of contact between two or more people in negotiating the sale, purchase, or rental of property. A person or company who is licensed to buy, sell, exchange, or lease real property for others and to charge a fee for these services and employs real estate salespersons to conduct brokerage activities on their behalf.

Broker

Licensees provide a wide array of valuable services that consumers can pick and choose from. When charging the fees for this service who must licenses consult with?

Broker

The business of bringing parties together by a person who is licensed to buy, sell, exchange or lease real property for others and to charge a fee for these services.

Brokerage

What agreement is an employment contract that establishes the rights and responsibilities of the broker as agent for the buyer-principal?

Buyer agency agreement

What Act prohibits exclusive tie-in-sales, price discrimination's and acquisitions that unfairly restrains trade?

Clayton Act

The person who is the principal who hires the agent and delegates to the agent and delegates to the agent the responsibility of representing the principal's interests. In a real estate transaction, this person may be the seller/property owner or buyer/tenant who has an agency relationship with the broker.

Client

What is the written system of standards for professional adopted by organizations or companies? It contains statements that are designed to advise, guide, and regulate behavior.

Code of Ethics

What is payment to a Broker for services rendered, such as in the sale or purchase of real property? It is usually a percentage of the selling price of the property?

Commission

Who is the person who is the recipient of any real estate service, as defined by PA's licensing law? This person may receive client or customer services, depending on the nature of the relationship established with the real estate broker.

Consumer

In PA what is the name of the disclosure summary that must be discussed prior to the purchase or sale of residential or commercial real estate or for the lease of residential or commercial real estate when the licensee is working on behalf of the tenant?

Consumer Notice

Who is the person who is a consumer of real estate services, but is not a client of the real estate licensee?

Customer

In PA what is the process that accomodates an in-house sale in which two different affiliated licensees are involved? The broker designates one licensee to represent the seller and one licensee to represent the buyer. The broker is still a dual agent.

Designated agency

A salesperson who is employed by a Broker and is asked to follow rules such as those governing working hours, office routine, attendance at sales meetings, assignment of sales quotas and adherence to dress code. This person gets gets a paycheck with federal withholding for social security.

Employee

What Act prohibits discrimination in the lending process based on race, color, religion, national origin, sex, marital status and age?

Equal Credit Opportunity Act (ECOA)

If a mortgage lender discriminates against a loan applicant on the basis of marital status, what law is violated? a. ADA b. Civil Rights Act of 1866 c. ECOA d. Fair Housing Act

Equal Credit Opportunity Act (ECOA) Prohibits based on color, religion, race, receipt of public assistance national origin, and marital status.

A victim in PA is also protected under what law? It prohibits retaliation against those who file complaints alleging discrimination, fair housing activities, and real estate licensees who are attempting to conduct business in compliance with the fair housing laws.

Ethnic Intimidation and Vandalism Act

An oral or written contract in which the parties state the contracts terms and express their intentions in words?

Express Contract

What group of laws prohibit discrimination in housing on the basis of race, color, religion, sex, disability, familial status, and national origin?

Fair Housing Act

What have the PA Human Relations Commission and the PA Association of REALTORS jointly authorized? It aims to standardize inventory of properties, utilize consistent practices for qualifying prospective purchasers and tenants, use verifiable and measurable criteria that can be justified as prudent business decisions with which to qualify all tenant applications equally.

Fair Housing Guidelines

What Act fills the loopholes of other laws and allows monetary relief, and permits investigations of such activities?

Federal Trade Commission Act

What is the relationship between trustee and beneficiary, attorney and client, or principal and agent?

Fiduciary relationship

A person who has the authority to enter into the contracts concerning all business affairs of another is called?

General agent

What is the illegal practice that occurs when two or more business conspire against other businesses or agree to withhold their patronage to reduce competition?

Group boycotting

What is the name of the contract under which the agreement of the parties is demonstrated by their acts and conduct ?

Implied Contract (agreement)

What is the agency that arises by conduct or inference from other acts or circumstances, often creating an agency relationship when none was intended?

Implied agency

What defines the rights and duties of the principal and the agent and applies in a variety of business relationships. In real estate transactions, contract law and real estate licensing law it interprets the relationship between licensees and their clients.

Law of agency

Refers to a person who has satisfied the requirements set forth by a licensing agency or state legislation

Licensee

An agency relationship between a seller and a broker is generally created by a written employment contract, commonly referred to as what?

Listing agreement

A marketing organization composed of member brokers who agree to share their listing agreements with one another in hopes of procuring ready, willing, and able buyers for their properties more quickly than they could on their own.

MLS

RELRA, Section 604 specifically prohibits accepting listings that illegally discriminate, give false information, and what else?

Make distinctions in the location of housing or dates of availability.

What is the name of the registry, manged by the Federal Trade Commission that is a list of the telephone numbers from consumer who have indicated they do not want to be bothered by telemarketers?

National Do Not Call Registry

What state law deemed to be "substantially equivalent" to the federal Fair Housing Act added religious creed, ancestry to a protected class. It defines disability more specifically.

PA Human Relations Act (PHRA)

Which of the following is an illegal reason for a lending institution to refuse to make a residential real estate loan in a particular area? questionable economic situation of applicant or physical location of the property?

Physical location of the property - redlining.

What is the illegal practice of competitors setting prices for products or services rather than letting competition in the open market establish those prices?

Price-fixing

Who is the main party to a transaction-the person for whom the agent works?

Principal

If a Broker wants to receive commission for a sale, he must be able to prove that he started an unbroken chain of events that ultimately resulted in a sale. What is this referred to as?

Procuring clause

What is the name of the buyer who is prepared to buy property on the seller's term and is ready to take positive steps to consummate the transaction?

Ready, willing, and able buyer

What is the name of the person who is an office manager, marketer, organizer, and facilitator who has a fundamental understanding of the real estate industry. They may or may not have a real estate license, depending on the state law. The extent to which this person can help the real estate Broker with transactions is determined by licensing laws.

Real Estate Assistant/Personal Assistant

Who is responsible for creating and maintaining an open housing market?

Real Estate industry is largely responsible for creating and maintaining an open housing market.

What Law prohibits contracts or conspiracies that create monopolies?

Sherman Antitrust Laws

The National Association of Realtors (NAR), the largest trade association in the country adopted a Code of Ethics for its members in 1913. Practical applications of the article of the code are known as the ?

Standards of Practice

What is the channeling of homes to particular neighborhoods or by discouraging potential buyers from considering some areas? In the rental process, it occurs when the landlord puts members of a protected class on a certain floor or building. Another form is when a landlord tells a prospective buyer nothing is available.

Steering

Who is the agent of an agent?

Sub agent

Who enforces ECOA?

The Federal Trade Commission (FTC)

What type of agreement involves the sale of one product contingent on the buyer also purchasing another product?

Tie-in-Agreements

Who is the Fair Housing Act administered by?

US Dept of Housing

Who is the agent that is empowered to do anything the principal could do personally? They act on behalf of the principal and are virtually unlimited in the power.

Universal agent

Agents must exercise a reasonable degree of care while transacting business entrusted to them by the principal. Is the agent liable to the principal for any loss resulting from negligence or carelessness?

Yup

Who are administrative proceedings held by?

administrative law judge (ALJ)

What is the unlawful act of encouraging people to sell or rent their homes by claiming that the entry or prospective entry of a protected class of people into the neighborhood will have some sort of negative impact on property values?

blockbusting (panic selling)

Title VII of the Civil Rights Act of 1968, called the Fair Housing Act, prohibits discrimination in housing based on race, color, religion, or national origin. It does not prohibit discrimination based solely on a person's what?It prohibits illegal activities such as steering, blockbusting (panic selling) and redlining.

citizenship status

What law prohibits any type of discrimination based on race, stating that "all citizens of the U.S. shall have the same right in every state and territory as is enjoyed by white citizens thereof to inherit, purchase, lease, sell, hold, and convey real and personal property?

civil rights act of 1866

In PA the PA Human Relations Act (PHRA) includes what type of property?

commercial

A Brokers compensation is specified in the contract and can be a flat fee, fee for service, hourly rate or what else?

commission

What is the resolution of a complaint by obtaining assurance that the person against whom the complaint was filed (the respondent) will remedy any violation that may have occurred.

conciliation

When in the ordinary course of doing business, real estate licensees, lenders or business owners adopt policies and procedures that might have unintentional discriminatory effects this is referred to as what?

disparate impact

What type of agency is represented by both parties in a single transaction. It is unethical unless both parties agree to it and in some states its illegal.

dual agency

PA's real estate licensee law considers the Broker's affiliated licensees, whether associate broker or salesperson as what?

employees

What is the system of moral principle, rules, and standards of conduct that guide a person's actions in life? They establish standards of integrity, competence and define a code of conduct for relationships within the industry among its professionals.

ethics

When one or more individuals under the age of 18 live with a parent or guardian they are said to have what type of status? This also applies to pregnant women and anyone in the process of assuming custody of a minor.

familial status

The Fair Housing Amendment Act of 1988 changed the penalties, making them more severe, and added damages such as those for non economic injuries (humiliation, embarrassment, inconvenience, and mental anguish). To whom did they expand federal civil rights protections to?

families with children and people with physical or mental disabilities.

What is a hidden structural defect that is not discovered by ordinary inspection and that threatens the property's soundness or the safety of its inhabitants. Sellers and licensees have a duty to inspect for and disclose this?

latent defect

Who is referred to as a facilitator, intermediary, transaction broker, transactional coordinator, or contract broker and is a middleman between a buyer and seller (landlord or tenant) and assists one or both parties with the transaction without representing either party's interest. They are subject to statutory responsibilities.

nonagent

An agency coupled with an interest is a relationship in which the agent is given an interest in the subject of the agency, such as the property being sold. Upon death of the principal does the interest go back to the principal?

nope

Are real estate licensees required to research or disclose information about sex offenders on the Megan's Law?

nope

Can a single agency broker represent both sellers and buyers in the same transaction and remain a single agent?

nope

Must electronic communication on a broker's website include his real estate license number?

nope

Two salespersons who work for the same brokerage firm agree to divide their town into a northern region and a southern region. One salesperson will handle listings in the northern region, and the other salesperson will handle listings in the southern region. Does this agreement violate antitrust laws?

nope

When in the course of the screening process for housing, is a Landlord prohibited from asking for citizenship documentation or immigration status papers.

nope; The Fair Housing Act does not specifically prohibit discrimination based solely on a persons citizenship status.

Is a general agent one who is authorized by a principal to represent the principal in one specific matter?

nope; range of matters

In how many acts or business transaction does a special agent represent the principal?

one; represents the buyer or the seller

PA and federal Fair Housing law has 3 exemptions: owner occupied buildings of one to four family dwellings, single-family housing sold or rented without the use of a licensee and housing operated by whom?

organizations and private clubs that limit occupancy to its members.

Brokers can incorporate social networking into their business and must know the risks for doing so. They need to learn about the potential risks and liabilities of these sites, including recognizing that the communication through these sites establishes what type of record?

permanent

The term fiduciary refers to what type of relationship?

principal-agent

The U.S Supreme Court expanded the this term to include ancestral and ethnic characteristics, including certain physical, cultural, or linguistic traits that are shared by a group with a common national origin.

race

What must Landlords do to existing policies, practices or services to permit persons who have disabilities to have equal enjoyment of the premises?

reasonable accommodation

The Americans with Disabilities Act (ADA) requires that in employment and access to goods, services and public buildings what must be put in place?

reasonable accommodations

What is the practice of refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than the economic qualifications of the applicants. This leads to the deterioration of older neighborhoods.

redlining

The key distinction between a licensed salesperson who is an employee and one who is an independent contractor is the extent of the control exercised by the broker over what?

salespersons business activities

What did the Fair Housing Amendment Act of 1974 add to the protected class?

sex

The legal relationship between broker and seller is MOST frequently what type of agency?

special agency

What is created when one broker appoints other brokers to help perform client-based functions on the principal's behalf.

subagent

Are complaints brought under the Civil Rights Act of 1866 taken directly to a federal court?

yup

Are the definitions of "handicap" under the Fair Housing Act and "disability" under the "Americans with Disabilities Act the same?

yup

Does RELRA require that agreements contain statements about the broker's polices regarding cooperation and compensation arrangement with sub agents, buyer agents, and listing agents, AND potential for dual agency?

yup

Does the listing agreement include the legal description of the property?

yup

Is a Transactional licensee a nonagent who provides ONLY customer-level service for either or both the buyer/tenant and sell/landlord in the transaction?

yup

the 1995 Housing for Older Persons Act (HOPA) prohibits an award of monetary damages against those who reasonably rely in good faith on property designated as housing for older persons as being exempt from familial status provisions of the Fair Housing Act. Did it repeal the requirement that 55 and older housing have "significant facilities and services" designated for seniors.

yup