CH. 2 Laws and Regulations Affecting Real Estate Practice

The cost for a person to file a discrimination claim through HUD is...? A. $0 (Dollars) B. $10 (Dollars) C. $50 (Dollars) D. $100 (Dollars)

A. $0 (Dollars)

In order to be exempt from the FHA a single family homeowner can sell or rent one home in how many years? A. 2 years B. 5 years C. 1 year D. 10 years

A. 2 years

In order to qualify as older persons housing, what percentage of units must be occupied by persons 55 or older? A. 80 Percent (%) B. 70 Percent (%) C. 100 Percent (%) D. 50 Percent (%)

A. 80 Percent (%)

Violating an anti-trust law could mean which of the following? A. All of the answer choices provided are correct B. Up to three years in jail C. Up to a $100,000 fine for an individual D. Up to a $1,000,000 fine for a business

A. All of the answer choices provided are correct

The Pennsylvania Human Relations Act expands the protected classes beyond the federal fair housing laws to include which of the following? A. Ancestry B. Age C. National origin D. Race

A. Ancestry

A broker employed by another broker is known as a/an...? A. Associate broker B. Real estate salesperson C. Dual agent D. Designated agent

A. Associate broker

An agent wants to gain more listings in a particular neighborhood. The agent encourages owners to sell quickly, saying that the home values in the area will decrease due to a particular ethnic group moving into the neighborhood. The agent has engaged in which prohibited act? A. Blockbusting B. Redlining C. Steering D. Discrimination

A. Blockbusting

If an agent is found distributing fliers in a neighborhood, which encourages homeowners to sell their home due to a new religious group moving in, the agent would be accused of? A. Blockbusting B. Lying C. Steering D. Redlining

A. Blockbusting

An owner of a property who is not exempt from the FHA can place which of the following signs? A. For rent by owner B. Family friendly rental C. Rental for Catholics D. Whites only

A. For rent by owner

A new start-up comes to a city and offers real estate services that make heavy use of technology and an app that has become popular that uses the MLS services. The start-up offers potential clients the opportunity to sell their homes for just a 1.5% commission. The other brokerages in the city decide to pull all their listing from the MLS and create their own listing database. What are they guilty of...? A. Group boycotts B. Market allocations C. Tie-in agreements D. Price-fixing

A. Group boycotts

The landmark Supreme Court case that confirmed the Civil Rights Act was legal was...? A. Jones versus Alfred H. Mayer Company B. Smith versus Alfred H. Mayer Company C. Jones versus Smith Company D. Jones versus Smith

A. Jones versus Alfred H. Mayer Company

The system of rules that a particular country or community recognize as regulating the actions of its members and may be enforced by the imposition of penalties is known as...? A. Law B. Ethics C. Regulations D. Guidelines

A. Law

An agreement between members of a trade to refrain from competition in specific market areas is known as...? A. Market allocation B. Price fixing C. Tie-in arrangement D. Group boycott

A. Market allocation

Which of the following is not considered part of the Federal Fair Housing Act? A. Megan's Law B. Fair Housing Amendments Act of 1974 C. Fair Housing Act of 1968 D. Fair Housing Amendments Act of 1988

A. Megan's Law

A real estate salesperson is permitted to do which of the following? A. Negotiate the purchase or sale of real estate B. Provide legal advice to clients C. Provide financial advice to clients D. All of the answer choices provided are correct

A. Negotiate the purchase or sale of real estate

An agent is creating an ad for a smaller two-bedroom home. Which of the following terms clearly violates the advertising guidelines under the Fair Housing Act? A. No Children B. Smaller bedroom C. Quiet neighborhood D. Convenient Location

A. No Children

Over the last 5 years, the average price for a home in Bellevue has been over $200,000, but recently the market has been in a slump, and the average sale price of the last 12 months has dropped to below $150,000. A group of real estate brokers get together and decide that none of them will sell a Bellevue home for less than $200,000. They are engaging in...? A. Price fixing B. Market allocation C. Group boycotts D. Tie-in agreements

A. Price fixing

The Pennsylvania Human Relations Act expands the protected classes beyond the federal fair housing laws to include which of the following? A. Religious creed B. Age C. National origin D. Race

A. Religious creed

HUD uses ............ as a tool in order to identify agents who may engage in activities prohibited under the Fair Housing Act. A. Testers B. Inspectors C. Spies D. Hidden Cameras

A. Testers

The following group is not a protected class under the FHA? A. The Elderly B. Families C. African Americans D. Catholics

A. The Elderly

A neighborhood in a city has suddenly become very popular. There were two well-established local real estate agencies in that neighborhood that previously served all the real estate needs for that area. However, due to the surge in popularity, many new real estate agencies have begun to try and do business in that neighborhood. The two established real estate agencies agree to only share listings with each other, and not with any of the newer agencies that have come to the neighborhood. Which below statement is true of these two real estate agencies? A. They are guilty of group boycotts. B. They are guilty of market allocation. C. They are engaging in smart business practices. D. They are protecting their communities by ensuring business stays local to people who really understand the neighborhood.

A. They are guilty of group boycotts.

Recently, agents in a town have noticed that the commissions they have been able to negotiate with potential sellers have gotten lower and lower. A 6% commission has become impossible to negotiate, and many are resorting to going below 3% to get listings. The three largest agencies in the town agree to not take any listings for below 4% so that they can bring the average commission back up. Which statement is true? A. They are guilty of price-fixing B. They are smart business people C. They are guilty of market allocation D. Because there are still other real estate agencies in the town, the anti-trust laws do not apply to this scenario

A. They are guilty of price-fixing

A buyer asks you if a particular neighborhood is safe, you should tell them? A. They should contact the local police department B. You can no longer work them C. Tell them about the recent break-ins D. Tell them you think it is a safe neighborhood

A. They should contact the local police department

Under the Fair Housing Act it is illegal to deny entry into which of the following? A. MLS B. Social Club C. BBQ D. Religious Club

D. Religious Club