Test Questions Course 3
Which of the following advertising descriptions may be a violation of fair housing law?
"Brand new apartments for young professionals. No children allowed!"
In fair housing cases, HUD can order the respondent to pay the federal government a civil penalty to vindicate the public interest. As of 2022, the maximum amounts for penalties are:
$23,011 for a first offense, $57,527 for a second violation within five years, and $115,054 if two or more violations occur within seven years
In California, earnest money must be deposited in a trust account within____ business days
3 business days
Broker Marcie just closed on the sale of a home in which the seller rejected two offers. Under California law, long must Marcie keep the records of the rejected offers?
3 years
Under the Fair Housing act, the Wilshire Estates has the right to exclude families with children. Who would be allowed to reside on the property?
55 or older
Which of the following scenarios would be an example of commingling?
A broker deposited their personal paycheck in the same account where they deposited a client's earnest money.
Which of these describes loan flipping?
A lender offers to refinance a borrower's loan multiple times, charging points and fees each time.
When it comes to fair housing, what is a tester?
A tester is a person who goes undercover to visit real estate offices and brokerages to see how potential clients are treated.
In the case of Jones v. Mayer, the court ruled that:
All discrimination based on race is illegal in the selling or renting of residential property.
Tanya is a property manager. She learns that a man with a disability, Greg, has bad credit, and declines to take his application for an apartment. Her decision is based on both his poor credit and his disability. What is TRUE of this situation?
Although Tanya is legally allowed to turn down applicants based on financial status, she is not allowed to do so based on disability.
Of the below, what is an example of blockbusting?
An agent tells white homeowners that people of another race are moving into the area and that property values are dropping.
Arnold, who is not a real estate agent, lives in a duplex. He lives in Unit A and rents out Unit B. What are Arnold's obligations when it comes to fair housing?
Arnold does not need to comply with the Fair Housing Act (although he cannot use discriminatory advertising).
Betty is an agent. She is showing properties to a Jewish couple. They ask to be shown only houses near synagogues. What should Betty do?
Betty should say that she can't take this factor into account, and show them houses in a range of neighborhoods that match their other parameters.
Ariana has procrastinated advertising one of her client's homes. She quickly makes and displays an ad with a photo of the home, her phone number, and only the words "For sale now!" at the top. This is an example of:
Blind ad
Elle is a responsible broker in California who is setting up a new trust account. How much of her personal funds can she deposit in the account?
Brokers may deposit personal funds of up to $200 to cover checking account service fees and other bank fees, as trust funds cannot be used to pay for these charges.
Lawyers from the NAACP sought court orders to let Black students attend white public schools.
Brown v. Board of Education
The Supreme Court decided that "separate but equal" was unconstitutional.
Brown v. Board of Education
The Supreme Court decided that racially based zoning was unconstitutional.
Buchanan v. Warely
The city of Louisville, Kentucky had an ordinance prohibiting Black people from living on a block where the majority of residents were white.
Buchanan v. Warley
Which of the following is NOT true regarding online advertising in California?
California's advertising rules do not apply to social media advertisements.
Of the below, which Act ruled that it is ALWAYS illegal to discriminate in housing based on race?
Civil Rights Act of 1866
_________________ is simply the mixing of funds.
Commingling
The illegal act of spending a client's funds for personal use is called:
Conversion
___________occurs when funds are actually spent on something.
Conversion
Who meets the criteria for having a disability?
DRUG Addiction NOT a disability
A real estate agent selling their own condo is exempt from the Fair Housing Act.
FALSE
The California Omnibus Housing Nondiscrimination Act makes all California acts that address discrimination consistent with this.
FEHA
prohibits discrimination in employment and housing
FEHA
Families Crave Resorts Not Small Damp Rooms
Familial Status Color Religion National Orgin Sex Disablilty Race
Memory Trick: FEHA's Protected Classes Good Grief! Cats Stalk Rats And Silly Messy Mice. Roll Call: All Naughty Mice Dead?
Gender identity/expression, Genetic information, Color, Sex/gender, Race, Age, Sexual orientation, Marital status, Medical condition, Religion, Creed, Ancestry, National origin, Military/veteran status, Disability
The California Real Estate Commissioner is appointed by whom?
Governor
also known as the Housing Financial Discrimination Act
Holden Act
focuses on mortgage discrimination and redlining
Holden Act
What is HUD? HUD enforces?
Housing and Urban Development The FHA and FHEO Fair Housing & Equal Opportunity specifically in charge
Sunshine Community is a condo community. Their policies state that no one under the age of 60 can live there. What is TRUE?
Housing for older persons is exempt from famial status of the FHA
The two brokerages involved in a sale are going to split the commission 50/50. If the commission is 8% on the sale of a home sold at $925,000, how much will each broker receive?
If the brokers are splitting an 8% commission, then each broker is receiving 4% of the sales price. $925,000 x. 0.04 = $37,000
How did the Civil Rights Act of 1866 affect real estate?
It prohibited discrimination in housing based on race or color.
John is moving into a privately owned apartment complex and asks the landlord to accommodate his wheelchair. John says he needs concrete ramps to be installed around the property. The landlord says he can't afford to install ramps, but is worried that he is discriminating. What is TRUE?
John can install ramps at his own expense
Which court case made the Civil Rights Act of 1866 enforceable?
Jones v Mayer
The Supreme Court decided that all racial discrimination in housing was unconstitutional.
Jones v. Mayer
This case finally made the Civil Rights Act of 1866 enforceable.
Jones v. Mayer
Which court case made the Civil Rights Act of 1866 enforceable?
Jones v. Mayer
Consider the below individuals. According to federal law, who is considered disabled?
Not a drug USER
A Black man sat in a white compartment of a train, and was charged with violating state law.
Plessy v. Feguson
The Supreme Court decided that "separate but equal" separation of the races was legal.
Plessy v. Ferguson
only exception is the rental of a roomer/boarder in a single-family house when there is no more than one roomer/boarder
Rumford Act
repealed due to racist pushback; re-instated in 1966
Rumford Act
A white couple owned a residence in Missouri governed by a restrictive covenant. This covenant prevented Black people from owning property in the subdivision. When a Black couple moved in, the white couple went to court to enforce the restrictive covenant. What court case is this?
Shelley v. Kraemer
The Supreme Court decided that the enforcement of racially restrictive covenants was unconstitutional.
Shelly v. Kramer
Any person who believes that they have been injured by the discriminatory practices of a real estate license holder has one year to file a complaint with HUD.
TRUE
A large apartment community has units available in multiple different buildings. When showing the property to prospective tenants who speak Spanish, the agent only shows units in a particular building where other families who speak Spanish live. The agent thinks it's a win-win: His clients, who are new to the country, will live nearby other people who speak the same language. What is TRUE of this situation?
The agent is steering within the apartment community.
An agent is showing a Jewish family a home. "I knew you'd enjoy this neighborhood," the agent says. "Look! It's a block from the synagogue! And I know for a fact that your neighbors would love to have you over for Rosh Hashanah." What is TRUE?
The agent is steering. His good intentions don't matter - this is still a discriminatory action.
A property manager denies an applicant's request for housing. What can the applicant do?
The applicant can ask why their application was denied.
A bank tells Sally, who is Black, that she is not qualified for a loan to buy a condo. Sally, suspicious, asks her white husband, who has very similar credit, to go in and make the same pitch for the same property. He is granted the loan. Evaluate this situation.
The bank is guilty of credit discrimination.
A property manager is talking to Bob, who wants to rent an apartment. Bob mentions that he has manic depression. The property manager thinks that dealing with an individual with this mental illness would be too much trouble. He directs Bob to another complex, saying that the complex is better suited to Bob's "needs." Evaluate this situation.
The property manager is refusing to rent to Bob due to Bob's disability. This violates the Fair Housing Act.
What are the five parts to the ADA?
Title 1-Employment-business w/ 15 plus ppl Title II- Public Entities/Transportation -bus/train Title III-Pubic Accommodations/Commerical Facilities-Dr. offices/movie theaters Title 1V-Telecommunications- VRS/CC Title V- Miscellaneous-insurance companies, attorney fees, drugs
An agent made $15,000 on a $400,000 sale of a home. What was their commission rate?
To find the commission rate, we need to use the formula Part ÷ Total = Percentage. So, divide $15,000 by $400,000. This equals 0.0375. Convert this to a percentage, which is 3.75%.
Allows for specialized housing for senior citizen
Unruh CRA
Which California Act prohibits discrimination in all business establishments of every kind whatsoever?
Unruh CRA
An advertisement reads, "Active senior citizen community. No families with children under 10, please." Evaluate the ad.
Usually, terms like "no kids" are discriminatory advertising. But when advertising a specific senior community, the phrases are acceptable.
Are blind ads illegal in CA?
YES
Ajit has a history of major depression. However, he currently is not suffering from it. Can he qualify as having a disability under federal law?
Yes. A person who has a record of a disability (though not currently impaired) qualifies as disabled under federal law.
Due to his untreated mental illness, a tenant commits an act of violence against another tenant. Can the property manager evict the tenant?
Yes. It is legal to evict current tenants who have a physical or mental impairment that poses a direct threat to other tenants.
A Christian organization owns a fourplex. It wants to rent to only Christian tenants. Under the federal Fair Housing Act, is this legal?
Yes. Religious organizations which rent to tenants for residential purposes are exempt from the Fair Housing Act.
Talia is a property manager. She is showing a pregnant woman an apartment. Talia is nervous about the woman's ability to climb stairs and walk around, so she gives the woman a briefer-than-normal tour. Is this discriminatory?
Yes. Talia is providing the woman with unequal services on account of her pregnancy.
A property manager is showing a possible tenant around an apartment complex. The manager says, "I really don't think you can manage the stairs with that cane. Let's stick to just properties on the first floor, okay?" Is this discriminatory?
Yes. The property manager is steering the tenant on the basis of his disability.
Zhang, a broker, is advertising a property for a seller with their written permission. He advertises the property with a "for sale by owner" sign. Is this allowed? Why or why not?
Zhang CANNOT advertise the home as a "for sale by owner" property because this would lead customers to assume that the owner was not represented by a real estate broker.
Which of the following scenarios would be an example of conversion?
a broker spending commingled funds to pay for a brokerage's electricity bill
According to federal law, who is NOT considered to have a disability?
a current drug user
Hilary asks that the property manager of her complex always call before anyone (like a maintenance worker) comes over, because she has severe anxiety around strangers. What is Hilary requesting?
an accommodation
What is a blind ad?
an ad in which a license holder attempts to promote or solicit real estate activity without disclosing the fact that they are a license holder
Why do most brokerages fall within the scope of the ADA, and, therefore, must be extra careful about accessibility?
because of their location or because they have 15 or more employees
Jackson is an agent who is making an ad for his client's home that is listed for sale. He creates an ad for a local periodical paper with a photo of the home, his phone number, and only the words "For sale! Call now and make an offer!" at the top. This is an example of:
blind ad
The provisions of the ADA are MOST likely to apply to owners of:
commercial/public properties--MOVIE Theaters
The illegal act of mixing personal funds with a client's funds is also known as:
commingling
Which property sale(s) does the Fair Housing Act cover?
condo-duplex-single family home NOT commercial!
Ana, who is Hispanic, is in the process of financing a home. The prepayment penalties seem excessive, as do the lender fees. In general, the lender seems very suspicious of Ana and keeps asking her if she can understand English. Ana may be experiencing:
credit discrimination
The Federal Fair Housing Amendment Act of 1988 added which two protected classes?
disability and familial status
What does Title I of the ADA cover?
employment
Here's another true story. In Ohio, a woman was looking for an apartment with her one-year-old son. Two landlords told her they wouldn't rent to her because she had a young child. The first landlord claimed it was because there was an elderly person living in the building. The second landlord said, "Kids tear everything up." The woman who told the story added, "He acted like my precious son was a pet or something." The woman was discriminated against on the basis of:
familial status
What are the protected classes under the Fair Housing Act?
familial status, color, race, national origin, sex, disability, religion
The provisions of the ADA are MOST likely to apply to owners of:
grocery stores--commerical
What is predatory lending?
imposing unfair and abusive loan terms on borrowers
The Real Estate Commissioner has required that trust fund records be kept:
in columnar form
Graciela is a real estate agent. Her income is based on commissions, and she has the freedom to set her own hours for her work schedule. Graciela is a(n) .
independent contractor
What kind of worker contracts to do work according to their own methods and is responsible to their employer only as to the results of that work?
independent contractor
When a worker controls how they accomplish their work, the worker is likely a(n):
independent contractor
The state of being responsible for something is called:
liability
Claudette believes that she has been injured by the discriminatory practices of a real estate license holder. How long does she have to file a complaint with HUD?
one year
Madiha has passed her licensing exam. From the date of the exam, how long does she have to obtain her license?
one year
A lender tells his new hire that as a bank, they have a policy of never giving loans to people who live in a certain neighborhood by the highway. What is this an example of?
relining
A _____broker supervises the real estate agents (which can be either salespersons or broker-associates) at the brokerage and ensures that agents are complying with all state and national real estate law
responsible
The 1896 case of Plessy v. Ferguson upheld racial segregation through the doctrine of:
separate but equal
A__________is a professional identity or brand name used by two or more real estate licensees for the provision of real estate licensed services.
team name
Under which federal law must there be wheelchair ramps to hospitals and grab-bars in public restrooms?
the ADA
Kamala was denied a mortgage loan in a new up-and-coming California neighborhood. When she calls the lender to follow up, they respond by telling her they only approve loans for people of a certain color in this particular neighborhood.This is illegal under which act?
the Holden Act
Under California law, transaction documents and escrow records must be maintained for
three years from the time of closing
What is the purpose of a trust account?
to provide an account that is separate from operational or personal accounts
