Practice of Real Estate and Disclosures-Final Exam

A resident manager in an apartment building is required to have a contractor's license for any repairs exceeding: $300 $500 $1,000 No contractor's license is needed so long as the work is personally performed by the resident manager.

$500. A resident manager who performs, orders, or oversees maintenance or repair projects costing $500 or more are subject to contractor licensing requirements issued by the California Department of Consumer Affairs Contractors State Licensing Board (CSLB).

Earthquake fault zones need to be disclosed to prospective buyers of certain properties in California. Typically, earthquake fault zones are: 0.25 miles wide 0.5 miles wide 1 mile wide 2.5 miles wide

0.25 miles wide. Earthquake fault zones are a quarter of a mile wide.

Who is authorized to manage property for the general public? A responsible adult Only a Certified Property Manager (CPM) A licensed real estate broker Any of the above

A licensed real estate broker. Once again, this is a licensing question. A broker's license is required to assist property owners and buyers

When inspecting a residence in a hillside subdivision, the salesperson observes cracks in the foundation and notices the doors and windows do not close properly. As a matter of best practice, the salesperson references their observations in the Transfer Disclosure Statement (TDS) and recommends that which of the following be ordered? A home warranty policy A special studies report A soil engineer's inspection A termite clearance

A soil engineer's inspection. Here's an example of arriving at the correct answer by eliminating the wrong answers. Though the other answer selections moderately relate to a property, the existence of cracks in a hillside subdivision indicates there may be a problem with the soil under the property, which is best diagnosed by a soil engineer.

The Real Estate Commissioner may discipline a broker for committing which of the following violations of Fair Housing law? Blockbusting Steering Hiring salespersons from only one specific ethnic group All of the above

All of the above. All of the listed activities are violations which are subject to disciplinary action.

A seller is required to disclose: the presence or absence of carbon monoxide detectors the existence of a septic tank on the property a nuisance in the neighborhood All of the above

All of the above. All of these need to be disclosed on the Transfer Disclosure Statement (TDS).

Commingling involves the mixing of one client's monies with: the brokerage firm's general account other clients' monies the sales licensee's personal account All of the above

All of the above. Commingling is the mixing of client's monies with those of other clients or the agent. This is in contrast to conversion, which is the use of client funds by the agent or their office for their own use.

When a real estate broker who has listed a property chooses to buy it in the name of a separate investment company, they need to: serve the client's best interest disclose to the client that they are the buyer disclose to the client that they are licensed All of the above

All of the above. Disclosure is the critical point here. There is nothing wrong with purchasing the property, provided the broker makes full disclosure to the client and receives their consent.

Discriminatory acts in the sale or rental of residential housing accommodations based on sex, religion or national origin of the prospective tenant or buyer are: unenforceable illegal contrary to public policy All of the above

All of the above. Discrimination is almost always wrong as it is against public policy and in conflict with Fair Housing laws. Senior citizen housing is one of the few exceptions

An unlicensed assistant in a real estate office can: sit at open houses conducted by the broker's office type listings and sales contracts for licensees hand out brochures All of the above

All of the above. This question provides a good source of information about the activities that can be performed by unlicensed assistants that can be used in future questions on this topic.

The __________ prohibits an employer from discriminating against a person with a disability seeking employment based on their disability. Civil Rights Act of 1964 Americans with Disabilities Act (ADA) Civil Rights Acts of 1866 and 1870 Unruh Law

Americans with Disabilities Act (ADA) The Americans with Disabilities Act (ADA) protects against discriminatory conduct against a person seeking employment.

A Natural Hazard Disclosure Statement (NHD) needs to be given to a buyer when the property is located within which of the following areas? A special flood hazard area A very high fire hazard severity zone An earthquake fault zone Any of the above

Any of the above. A Natural Hazard Disclosure Statement (NHD) is required on all properties located in the areas specified.

Under no circumstances may a real estate broker misrepresent a material fact to a buyer. If they do, the broker faces: disciplinary action by the California Bureau of Real Estate (CalBRE). criminal action civil action Any of the above

Any of the above. A material fact is one that affects the value and desirability of a property. As such, the failure to disclose is a significant breach of the broker's fiduciary duty to their client. If the failure to disclose rises to the level of fraud or deceit, the broker may be subject to civil or criminal penalties depending on the nature of the misconduct.

State regulations in California contain a statement that prohibits discrimination due to race, color, religion, marital status, national origin, or ancestry. Discrimination in which of the following areas would be a violation of the code? Unimproved land to be used for a home Vacant housing accommodations 4 unit apartment building Any of the above

Any of the above. The Rumsford Act applies to one-to-four unit residential properties as well as vacant land designated for residential use.

Which of the following is true? Every real estate broker needs to maintain a definite place of business in California. An advertisement must include the licensee's name and license number. Both a. and b Neither a. nor b

Both a. and b. A licensee's name and license number is required on all promotional materials, including business cards. Further, a broker needs to have a physical address on record with the California Bureau of Real Estate (CalBRE) to receive mailings and be subject to state audits.

Sexual discrimination in housing is outlawed in sales and rentals under the: Fourth Amendment Eighteenth Amendment Civil Rights Act of 1968 Uniform Fair Housing Act

Civil Rights Act of 1968. Gender is among the protected groups described in the Civil Rights Act of 1968.

Title VIII, also known as the Federal Fair Housing Act, refers to the: Civil Rights Act of 1968 Unruh Act Civil Rights Act of 1964 Civil Rights Act of 1866

Civil Rights Act of 1968. The Unruh Act is California specific. The Civil Rights Act of 1964 is in reference to voting rights legislation. Thus, the correct answer is A. Civil Rights Act of 1968. Notice the Civil Rights Act of 1968 has been addressed in several previous questions, which may be helpful when answering this question.

Both a seller and a buyer ask the broker to give them the trust funds deposited by the buyer. How is the broker to respond? Begin a surrender action Turn the funds over to the Real Estate Recovery Fund Declare an equitable assignment of the funds Commence an interpleader action to resolve the dispute

Commence an interpleader action to resolve the dispute. This is a terminology question. An interpleader action is a legal process asking the court to resolve the dispute between the principals.

activities refer to the concerted and continuing efforts taken by an agent to meet the objectives of their client under their employment agreement. Conflict of interest Due diligence Unlicensed Advance fee

Due diligence Due diligence is a positive effort to work for the client's best interest. A conflict of interest imposes a bias that makes it difficult to work solely for the client's best interest

A surrender occurs due to the cancellation of the lease agreement by: the mutual consent of the landlord and the tenant operation of law, implied due to the conduct of the landlord Either a. or b Neither a. nor b

Either a. or b. Both actions constitute a surrender.

Most real estate records need to be kept for a period of three years, commencing from the date: that a property is first listed the sale occurs escrow closes Either a. or c

Either a. or c. Both answer selection A and B are the initiation of a process, whereas answer choice C is the end. Record keeping commences from a certain date - when the listing was signed or when the sale was complete.

An abandonment can be noticed and carried out when a tenant: voluntarily vacates the leased premises with an intention to reoccupy. voluntarily vacates the leased premises with no intention to reoccupy. fails to pay rent with no intention to further perform their obligations on the lease. Either b. or c.

Either b. or c. The abandonment of real property requires having no intent to continue meeting the obligations of a lease or occupying the property.

Which of the following conditions would not cause a building to be declared uninhabitable? Dampness in the habitable rooms. Electrical wiring that is safe and working properly but does not comply with present building codes. There is no heating in the entire property A broken window at the back of the house

Electrical wiring that is safe and working properly but does not comply with present building codes. This question is phrased in the negative. Answer selections A, C and D render the rental property uninhabitable. The electrical wiring (a significantly longer answer and more detailed answer selection), does not trigger the inhabitable defense since it is safe and functional even though it does not meet current building codes.

Robert, a developer who is unlicensed, hires Yvonne, a broker, to sell his properties. While Yvonne is out of town, Robert shows property, quotes prices and makes sales. Have Robert or Yvonne violated the Real Estate Law? Yvonne has violated the Real Estate Law and can be fined $500. Robert has violated the Real Estate Law and can be fined $500. Both Robert and Yvonne have violated the Real Estate Law Neither Robert nor Yvonne has done anything wrong

Neither Robert nor Yvonne has done anything wrong. Robert is the owner of the property being sold. Thus, the sale is considered a for sale by owner (FSBO) transaction which does not require a license, as the private seller is acting for their own account, not as an agent of another.

A prospective buyer is interested in purchasing a vacant lot in a rural subdivision. The buyer wishes to know about sewer assessments, liens, utilities to the lot, blanket encumbrances and street maintenance. The source that provides all of this information is the: county planning director county Board of Supervisors county engineer Real Estate Commissioner

Real Estate Commissioner. The Real Estate Commissioner issues a public report on all rural subdivisions containing this sought after information.

Roland, a broker, arranges a sale and opens escrow. Before escrow closes, his license is revoked by the California Bureau of Real Estate (CalBRE). What happens to Roland's commission? Roland's commission goes to the Real Estate Education Research and Recovery Fund. The seller does not have to pay any commission The commission is split between the buyer and seller Roland gets his commission

Roland gets his commission. The broker's commission is earned when a ready, willing, and able buyer is found. Thus, since the broker was licensed at the time he procured a buyer as contracted for, he is able to collect his fee.

Roy, an inactive real estate salesperson, offers to assist Mel lease or purchase federal land for a fee. Roy can legally arrange a lease or sale for a fee since the land is federally owned. Roy must be a broker to perform these duties and collect a fee. Roy is subject to disciplinary action from the California Bureau of Real Estate (CalBRE). Roy is committing a federal crime.

Roy must be a broker to perform these duties and collect a fee. This is a real estate licensing question. Recognize the need to have a license for most any activity involving a potential principal.

When purchasing a business, the buyer needs to be certain a certificate of clearance has been issued by the: Secretary of State (SOS) Department of Business and Transportation (DBT) Alcoholic Beverage Control (ABC) State Board of Equalization (SBOE)

State Board of Equalization (SBOE). The certificate of clearance, issued by the State Board of Equalization (SBOE), assures the buyer of a business opportunity that any taxes due have been paid

A seller's broker sold a property to a buyer. Four months later, when the first rains of the season began, the buyer discovered significant roof leaks. The buyer sued both the seller and the broker for the cost of repairs. The seller sued the broker in the same action since the seller had informed the broker numerous times that the building needed a new roof. The broker's testimony in court revealed the broker was aware of the leaky roof but had not mentioned it to the buyer since the issue of the leaking roof was not mentioned by the buyer. What is the most likely result of the court action? On the basis of the principle of caveat emptor, the buyer is not entitled to recover from either the broker or the seller. The buyer may recover from the broker, but the seller would not be liable. The buyer may recover from the seller, but the broker would not be liable. The buyer may recover from both the seller and the broker. Further, the seller would recover in the suit against the broker.

The buyer may recover from both the seller and the broker. Further, the seller would recover in the suit against the broker. The lack of disclosure between the broker and the buyer causes the broker to be the responsible party. Therefore, the buyer may recover from both the seller and the broker. Further, the seller may also recover from the broker since the broker was informed of the leaky roof by the seller and did not disclose it to the buyer. In actual practice, the seller would have disclosed the leaky roof in the Transfer Disclosure Statement (TDS).

Which of the following is an example of personal property? An appurtenant easement Trade fixtures Fixtures installed in a property for manufacturing purposes Mineral rights

Trade fixtures. Only trade fixtures belong to the tenant as personal property and are to be removed by the tenant on the termination of the lease

When a real estate license expires, how long is the agent's grace period in which they may reinstate their license? One year Two years Three years Four years

Two years. A grace period lasts two years in which a licensee by process of a late-renewal may reinstate their license.

An example of a red flag would be: a cited code violation a home overbuilt for the neighborhood a floor that is not level an older home

a floor that is not level. A red flag is something that alerts an agent of a previously unknown potential physical problem with a property. The only answer selection that is consistent with this is an uneven floor

An agreement between two parties in which one party is granted the right to offer, sell, or distribute goods or services under a marketing plan described by the other party is commonly known as: a franchise agreement a real property securities transaction a business opportunity transaction a personal securities investment

a franchise agreement. Franchise sales is an important part of business brokerage, such as fast food restaurants and convenience stores

A buyer of a common interest development (CID) is entitled to receive all except copies of: a homeowner warranty. the governing conditions, covenants and restrictions (CC&Rs). the homeowners' association (HOA) bylaws the HOA's financial statement

a homeowner warranty. A buyer of a condominium or property in a planned urban development (PUD) has the right to receive copies of all the association and subdivision information and documents. A homeowner warranty is an insurance policy that is purchased separately by the buyer.

A Latino real estate agent working in a Hispanic neighborhood informed current owners they should move out because another ethnic group is moving into the area. This conduct is an example of all of the following, except: blockbusting panic selling a legal practice, but unethical an illegal practice

a legal practice, but unethical. Discrimination can occur among any protected group. Here's an example of a question that can cause confusion simply by the structure of answer choice C. If the act is illegal (answer choice D), then it cannot be legal regardless of being classified as ethical or not

An unlawful detainer (UD) action is instigated by: a grantor a trustee a lessor a real estate broker

a lessor. An unlawful detainer (UD) action is the court procedure to force a tenant to vacate the rental space they do not have the right to possess. A lessor (landlord) is the aggrieved person who initiates this process against an individual who holds no right to occupy a property, such as a holdover tenant.

In California, commission fees charged on residential properties cannot exceed: 6% as set forth in the Real Estate Law. an amount which is determined by the broker's contract with their principal. 8% of the total sales price of a residence any amount determined by local custom

an amount which is determined by the broker's contract with their principal. No government agency or private trade organization establishes fees. A broker's fee is set between the broker and client.

The total positive balances due to all beneficiaries of a broker's trust account need to at all times equal the account's: shortage balance overage fidelity bond coverage

balance. Just as with a personal checkbook, a trust account needs to balance.

Any suggestion by a licensee that the racial makeup of a neighborhood is changing to induce panic selling is an example of: blockbusting steering redlining all of the above

blockbusting. Blockbusting, also known as panic selling, is the prohibited practice of inducing a person to offer a dwelling for sale by creating fear over the changing demographics within the neighborhood

It is least likely to be a violation of the Real Estate Law for a broker to pay a portion of the commission to a(n): unlicensed assistant a salesperson working for another broker unlicensed person who obtained the listing buyer or seller in the transaction

buyer or seller in the transaction. Paying a portion of their commission to a buyer or seller in a transaction is allowable provided full disclosure is made to all parties. Each of the other answer selections is against the law.

A seller's broker earns their commission: by finding buyers who are ready, willing and able to buy. by diligently attempting to market property on behalf of a seller. the moment they list properties on the close of escrow

by finding buyers who are ready, willing and able to buy. The key word in the question is "earned." When the buyer who is ready, willing, and able has been found, the commission is earned. Another question might ask "when" the commission is generally received, which is the close of escrow.

If a seller refuses to fill out their section of the Transfer Disclosure Statement (TDS), the seller's agent is advised to: give written notice to the buyer of their right to receive such a TDS. accept the listing and obey the seller's direction not to disclose any negative property issues. complete the listing agent's portion of the TDS and deliver it to the buyer without the seller completing their section of the form. obtain the buyer's waiver of their right to receive a copy of the TDS.

complete the listing agent's portion of the TDS and deliver it to the buyer without the seller completing their section of the form. This is the best answer choice. However, as a matter of best practice, the seller's agent is to explain to the seller their obligation to accurately complete their portion of the Transfer Disclosure Statement (TDS).

The Uniform Commercial Code, which pertains to a bulk sale transfer, exists primarily for the protection of: creditors buyers sellers customers

creditors. Creditors need protection from those who might attempt to walk away from their debt obligations.

Under the Alquist-Priolo Special Studies Act, a subdivider is required to disclose to potential purchasers: earthquake fault lines flood hazard zones environmental issues the existence of nearby military ordinances

earthquake fault lines. This is the earthquake disclosure law.

Which of the following is an example of "puffing": convincing the seller to pay a high commission. convincing an appraiser to place an unrealistic value on the property. exaggerating certain features or benefits of a property. stating an opinion that sounds like fact.

exaggerating certain features or benefits of a property. "Puffing" refers to exaggerating certain components of a property. Think of a bird that expands its chest to impress a potential mate.

A public walkway within a condominium community: needs to be at least five feet wide must be made of concrete exists in a common area is maintained by individual owners

exists in a common area. Can you visualize exceptions that would make answer selections A and B incorrect? For instance, some walkways may be narrower than five feet or made of asphalt. Answer choice D cannot be correct, as the homeowners' association (HOA) within a condominium community is responsible for the maintenance of common areas and facilities. Thus, C is the best option as public walkways always exist in a common area in an HOA community

A newspaper advertisement is considered "blind" when it: doesn't include the property address. contains misleading information. doesn't state the sales price. fails to state the fact the advertiser is a broker or agent and does not include their California Bureau of Real Estate (CalBRE) license number.

fails to state the fact the advertiser is a broker or agent and does not include their California Bureau of Real Estate (CalBRE) license number. As with Question 2, the lack of licensee identification creates the blind ad.

Real estate licenses are issued for: one year two years four years life

four years. A real estate license needs to be renewed every four years by completing 45 hours of continuing education.

Salesperson Sally advertised in a newspaper that anyone who bought a home through her services would receive a free home appliance valued up to $500. Such an advertisement is: illegal under any conditions. legal, provided the chance to win is disclosed. legal, provided full disclosure is made to all interested parties. illegal, since the value exceeds $300

legal, provided full disclosure is made to all interested parties. Disclosure is key to most such questions. Provided everyone is made aware of the promotion and its terms, this is a perfectly acceptable business practice.

An investor made a $40,000 down payment on a $400,000 condominium. One year later, the property increased 10% in value. This resulted in a $40,000 or 100% gain on the $40,000 equity. This is an example of: contribution assemblage substitution leverage

leverage. Leverage is the use of debt financing of an investment to maximize the return per dollar of equity invested.

The purpose of a(n) __________, like an easement and a lease, is to grant the right to use property owned by another person. encumbrance personal privilege unlawful detainer (UD) license

license A license is a revocable right to use something, such as land. A license is appropriate where the use of the land is open and notorious to avoid an adverse possession claim

After an applicant passes the real estate licensing exam, they need to apply for a license within: one year of the examination one year after being notified of the test results two years from the date of the exam six months of being notified of test results

one year of the examination. An applicant needs to apply for a license within one year of passing an examination.

Requirements for licensing as a real estate salesperson include all, except: ownership of property being eighteen years or older being honest and truthful getting fingerprinted

ownership of property. Property ownership is not a requirement for obtaining a California Bureau of Real Estate (CalBRE) license

If a tenant moves in and pays one month's rent prior to receiving a written copy of a verbally agreed-on two-year lease, the tenant has a(n): tenancy at sufferance periodic tenancy estate for years estate at will

periodic tenancy. Due to the fact the tenant moved in and began paying rent, these activities signifying periodic tenancy take precedence over the verbal lease agreement.

An unlicensed assistant may: show property to prospective buyers encourage a prospective client to use the broker's services discuss the terms or conditions of a possible sale prepare a comparative market analysis (CMA) for a client

prepare a comparative market analysis (CMA) for a client. An unlicensed assistant may be employed to perform nondiscretionary administrative activities, such as write up documents including contracts and comparative market analyses (CMAs), as long as they are reviewed by the broker. However, most interactions with the public are not allowed.

The purpose of the Real Estate Law is to: prevent fraud protect the public keep track of all real estate transactions limit competition

protect the public. Most laws and regulations are designed to protect the public. Preventing fraud may be part of the goal, but the total reach of the Real Estate Law is far broader than that

It is appropriate for real property managers to be compensated in all of the following ways, except: a commission for new tenants solicited. a percentage of the total gross rents received. additional compensation for supervising renovations and improvements. receiving kickbacks from contractors and suppliers.

receiving kickbacks from contractors and suppliers. This is a clear ethics violation. Kickbacks are never acceptable under any circumstance.

If a licensee's name is on a list of obligors who have not complied with a court-ordered payment of child support, the licensee's renewal application will: renew as a suspended license until paid. be suspended until they have paid the delinquent amount. renew as a temporary license, but the debt must be paid within 150 days. be renewed for a one-year term only, unless the licensee submits proof from the District Attorney the debt has been paid.

renew as a temporary license, but the debt must be paid within 150 days. On renewal of their license, failure to pay child support will cause a licensee to receive a temporary license allowing 150 days to resolve the arrears.

A right to later buy a property at an undetermined price given to a tenant that does not compel the owner to sell is an example of a(n): land contract lease with an option to purchase right of first refusal All the above

right of first refusal. This is the only the answer selection which meets all the requirements set forth in the question. Options and contracts both obligate the seller and stipulate an agreed to price. A right of first refusal is a pre-emptive right to buy a property if the owner decides to sell.

A broker chooses to employ their salespeople as independent contractors rather than employees. By doing so, the broker will save out of pocket expenses relating to: automobile insurance errors and omissions insurance social security advertising

social security. A broker needs to pay into social security for an employee, but not for an independent contractor.

The act of restricting a person from seeking to buy a residential property in a community and redirecting them to other housing is known as: steering driving redlining panic peddling

steering. This is a Fair Housing question. Envision a sales agent "steering" the potential buyer away from neighborhoods the buyer might wish to see.

When a purchase agreement states the property is being sold "as is," it: still requires the buyer to receive a Transfer Disclosure Statement (TDS) noting any material facts which affect the property's value. puts the buyer on notice they should beware. underscores the fact that nothing is warranted. releases the seller of the requirement to deliver a TDS to the buyer or make any disclosures about the condition of the property.

still requires the buyer to receive a Transfer Disclosure Statement (TDS) noting any material facts which affect the property's value. "As is" is a nebulous and frequently misunderstood statement in real estate practice. A Transfer Disclosure Statement (TDS) containing property information including known or suspected property defects affecting value is required to be delivered to a prospective buyer on the sale of a one-to-four unit residential property as soon as practicable on the commencement of negotiations.

The covenant of quiet enjoyment most directly relates to: a court action to clear title natural hazards tenant freedom from owner harassment None of the above

tenant freedom from owner harassment. Standard rental agreements contain a covenant obligating the lessor (landlord) to allow a tenant to live free of harassment and benefit from the quiet enjoyment of their property.

The best guideline to determine whether an action is ethical can be found in: state legislation the Business and Professions Code the Preamble of the National Association of REALTORS® what is in the best interest of the real estate licensee

the Business and Professions Code. Real estate brokerage is a profession. Therefore, any question about proper business practice is controlled by the Business and Profession Code.

Which of the following state agencies is empowered to prevent acts of discrimination in housing accommodations in California due to race, color, sex, national origin or ancestry: the California Bureau of Real Estate (CalBRE) the Unruh Department the Department of Fair Employment and Housing the Department of Housing and Urban Development (HUD)

the Department of Fair Employment and Housing. The Department of Fair Employment and Housing is the state agency empowered to enforce Fair Housing laws.

A salesperson's commission is paid by: the seller the broker escrow the buyer

the broker. A salesperson is "an agent of the agent" and always works for the broker who represents the principal. Thus, the commission is paid to the broker who then distributes the monies according to the terms of the salesperson/broker agreement.

A verbal agreement to sell real estate is enforceable when: the sale is for unimproved land. the purchase price is less than $900. the parties have given an oath regarding the agreement. the buyer makes a down payment, takes possession and improves the property.

the buyer makes a down payment, takes possession and improves the property. The theory of estoppel holds the act of making a down payment, occupying and improving a property represents a mutual agreement to the sale.

A real estate broker's advertisements need to include: the name of the broker and license number that the advertiser is a broker or agent the address of the broker Either a. or b

the name of the broker and license number. Without the disclosure of the broker's name and license number, this type of advertisement is considered a prohibited "blind ad."

The Transfer Disclosure Statement (TDS) form is required on: the sale of a one-to-four unit residential property the sale of a commercial building all foreclosure sales the sale of vacant land

the sale of a one-to-four unit residential property. Many disclosure laws target one-to-four unit residential properties as a protected class of real estate. As the Transfer Disclosure Statement (TDS) form is completed by a seller regarding known facts, it is not required in the instance of a foreclosure. Further, commercial property transactions require the disclosure of property defects affecting value, but the statutory TDS form is not required.

The maximum security deposit for a furnished apartment is: $10,000 one month's rent two months' rent three months' rent

three months' rent. The maximum security deposit for an unfurnished rental unit is two months' rent while the maximum for a furnished unit is three months' rent. There is no specific dollar limit

A sublease: is similar to an assignment transfers a portion of the leasehold interest transfers the entire leasehold interest cannot exceed one year

transfers a portion of the leasehold interest. A sublease is less than a complete transfer of a leasehold interest subject to the terms of the master lease. The original lessee retains certain obligations and acts in a capacity similar to the lessor in relation to the sublessee.

Freddie, an unlicensed employee of a real estate broker, hands out door hangers and makes telephone solicitations seeking buyers and sellers. Under the real estate law, these activities are: unethical for the broker who employs Freddie as an unlicensed employee. commonly accepted behavior in the brokerage community unlawful for Freddie unlawful for both Freddie and his employing broker

unlawful for both Freddie and his employing broker. An employing broker is liable for any wrongful act conducted by their employee.

If a group of brokers agreed to divide a market area or set commission rates, it would: be a cooperative business practice create an extra protection for consumers violate Real Estate Law violate Anti-Trust Law

violate Anti-Trust Law. Any restraint of trade is a federal anti-trust violation.

A prohibition against a "For Sale" sign in a residential neighborhood is: permitted, provided it applies to everyone in the neighborhood equally. violates the Fifth Amendment violates the First Amendment violates the Fourteenth Amendment

violates the First Amendment. Such a prohibition violates the First Amendment which protects against unreasonable restrictions on free speech.