Chapter Seven
no commission, so long as Wally was not the procuring cause
Wally Wells, a licensed salesperson, obtained an open listing agreement with Client 1 on Parcel A, and an exclusive right-to-sell agreement with Client 2 on Parcel B. Both listings expire without an offer. Three days later, Clients 1 and 2 exchange Parcels A and B under a 1031 exchange. Wally will receive:
when the offer to purchase has been signed and accepted by the seller
When does a broker earn commission?
Encouraging Caucasians to sell by saying that African Americans are moving into the neighborhood
Which of the following actions is NOT a form of steering?
A couple who are expecting a baby and A retired 53 year old widow
Consistent with Fair Housing Laws, an owner of an apartment building rents exclusively to the elderly. Currently, 70% of his units are occupied and 30% are vacant. To continue renting exclusively to the elderly (without violating Fair Housing Laws), the owner may rent the next unit to all of the following persons, EXCEPT:
Civil Rights Act of 1866
Dixie is selling her own home as a FSBO. On Sunday, a full price offer is made by an Asian couple. Dixie refuses the offer. On Monday, Dixie accepts an offer that is $4,000 below asking price from a Caucasian family. Dixie could be in violation of which of the following laws?
Blockbusting
Encouraging a homeowner to sell his or her property because minority group families are moving into the neighborhood is:
The Federal Department of Housing and Urban Development
Enforcement of the Fair Housing Law of 1968 is the primary responsibility of:
The Department of Housing and Urban Development
If a person feels they were discriminated against in a real estate transaction, they would file a complaint with:
Department of Housing and Urban Development
If a person has been discriminated against in a real estate transaction, they could file a complaint with the:
Show her any property for which she is financially qualified
If a prospective minority buyer asks an agent to show her properties, the agent should:
they must make rooms available to all persons
If a religious organization operates a hotel as a means of raising money to support the organization, which of the following statements is true?
Catholics preferred
If included in an advertisement, which of the following statements would constitute a Fair Housing violation?
Discrimination occurred
In Fair Housing discrimination cases, the burden of proof is on the complainant. The complainant must be able to prove:
The applicant can be denied a lease
In an all elderly housing development, 90% of the units are occupied by persons over age 55. A single mother with 2 small children wants to rent one of the units. Which of the following statements is true according to the Fair Housing Law, as amended in 1988?
The broker holds an earnest money deposit check, at the request of the offeror, until acceptance by the offeree
It would NOT be considered commingling of funds, if:
1968 Fair Housing Law
John Doe is trying to rent a bedroom in his house. A Latin American applies and is told by the owner (Doe), "I will only rent to a Caucasian." Which law has John violated, if any?
No, this is proper marketing practice
Many Korean families have purchased homes in a specific neighborhood of your community. Now, local merchants are marketing to the Korean clientele. A Caucasian resident listed his house with your firm and you add the property to the MLS. You also place a bilingual ad in the newspaper and a bilingual "For Sale" sign on the property. Are your actions discriminatory?
Redlining
Nice and Easy Loan Company has a policy of either restricting the availability or requiring lower LTV ratios for loans made in "high risk" areas of the community. This practice is known as:
the applicant can be denied a lease
Ninety percent of the units in an all-elderly housing development are occupied by persons over age 55. A single mother with 2 small children wants to rent one of the units. According to the Fair Housing Law, as amended in 1988, which of the following statements is true?
Steering
Prospective buyers discuss their housing needs with a sales agent. The agent discusses certain property, but avoids talking about houses located in a specific area that meet the buyers' criteria. Such action could be known as:
Prohibits discrimination on the basis of race, color, religion, sex, or national origin
The Federal Fair Housing Act of 1968 did which of the following actions?
Price fixing
The Federal Fair Housing Law is intended to protect the public from all of the following actions, EXCEPT:
Scope of work, Degree of supervision, Who pays insurance
The difference between an employee and an independent contractor depends on:
Elderliness
All of the following classes are protected under Federal Fair Housing Laws, EXCEPT:
nothing
An agent listed a property where a murder recently occurred. If the agent shows the property without advising potential buyers of the murders, he would be guilty of:
blockbusting
Anti-trust Laws are intended to protect the public from all of the following EXCEPT:
Work under direct supervision and Hold regular office hours
Employees generally:
Sexual preferance
Federal Fair Housing Laws do NOT provide protection on the basis of:
Document all transactions with all clients or customers
How can a broker best demonstrate his compliance with Fair Housing Laws?
Document all transactions with all clients or customers
How can you BEST demonstrate your compliance with Fair Housing Laws?
Redlining
If a lending institution refuses to consider a property loan because of the religious make-up of that area, the lender is:
Against households with children under 18 years of age
The 1988 Amendment to the Federal Fair Housing Act, Title VIII, declared it unlawful to discriminate:
Illegal drug addicts
The Fair Housing Law protects several groups. Which of the following groups are not specifically protected?
Race
The Federal Civil Rights Act of 1866 prohibits discrimination on the basis of:
Refusing to sell to a person because of his or her national origin
Which of the following actions would constitute a violation of federal Fair Housing Laws?
Handicapped
Which of the following groups was NOT protected by Title VIII of the 1968 Federal Fair Housing Law?
Redlining
Which of the following practices would most likely deteriorate the economic status of a neighborhood?
Everyone, unless specifically exempted by the law
Who is required to comply with the Fair Housing Laws?
Steering
A Hispanic family asks to see homes in the $125,000 to $140,000 price range. The broker only showed them property in integrated areas of the community, though there were appropriately priced homes in all-white areas of town. The broker is guilty of:
Require that upon termination of the lease, the tenant must pay for any damage caused by the dog
A blind person with a Seeing Eye dog wants to rent an apartment in a building that has a "no pets" rule. The landlord may:
a full commission
A broker has an exclusive right-to-sell listing, but the owner finds a buyer himself and sells the property while the listing is still in force. The broker is entitled to:
Steering
A broker has been approached by a minority, who requests to see properties in a specific section of a city. The broker refuses and indicates that the buyer would be better off in a part of the city where there is a greater concentration of that minority group. The broker's illegal conduct is known as:
That the current owner as HIV
A broker is representing a buyer. When the broker is showing property, he must NOT disclose to his client:
Explain that he cannot comply because this violates federal law
A broker takes a listing from a seller, who then says that the house must not be shown to a minority. The broker should:
Hiring salespersons on the basis of sex, regardless of experience or qualifications
A broker would be in violation of the Federal Fair Housing Act for all of the following actions, EXCEPT:
hiring salespersons on the basis of sex, regardless of experience or qualifications
A broker would be in violation of the Federal Fair Housing Act for all of the following actions, EXCEPT:
Redlining
A couple has a good income and excellent credit. They want to buy and renovate a home in an economically distressed neighborhood, but have been turned down by 3 different lenders. This is most likely an example of:
Redlining
A developer has been successful in the renovation and redevelopment of apartment projects. The developer has an excellent credit history, but has been denied a loan to renovate a project in a crime-ridden area of town. This is an example of:
Market the house only to non-minority customers
A listing broker obtained a ready, willing, and able minority buyer to purchase at the listed price. However, the sellers refused the offer because of the buyer's race. The broker may legally take all of the following actions, EXCEPT:
Yes, the Civil Rights Act of 1866
A private homeowner is selling his property, but refuses to enter into a contract because the offerors are a black couple. Has the homeowner violated the law and, if so, which law?
No, these funds must be placed in a separate escrow account
A real estate broker wishes to deposit an earnest money check in his business operating account so the purchaser can earn a higher interest rate on her funds. Can he do this?
They must make rooms available to all persons
A religious organization operates a hotel as a means to raise money and support themselves. Which of the following statements is true?
fraud
A salesperson took a listing on a property that had a crack in the foundation, caused by water seepage. Although the owner tells her that the water problem had been corrected, it's obvious that the owner had only filled in and painted over the crack. If the salesperson shows the property without informing potential buyers about the issue, she would be guilty of:
Immunity from suit due to broker's primary liability
A salesperson who engages in steering might be subject to all of the following results, EXCEPT:
A person addicted to an illegal drug
According to the 1988 Fair Housing Law, which of the following persons would NOT be considered as handicapped?
