Unit 8: Other Real Estate Matters TEST

The __________ is a public notification law designed to protect the public from sex offenders. Although sex offender disclosure is not required by law, many agents feel obligated under the duty of reasonable care to provide a disclosure to prospective buyers Texas Sex Offender Registration Program Fair Housing Act Honestly and Fairly Act Fair Initiatives Program

Texas Sex Offender Registration Program

Brokers and their sponsored licensees provide real estate related services to clients with the expectation of receiving compensation. The most common type of compensation is: a commission based on the property's sale price. a commission based on the broker's office expenses. a commission based on the property's appraised value. a commission based on the borrower's loan amount.

a commission based on the property's sale price.

James, a real estate salesperson, caused panic selling when he told people that the value in their neighborhood was declining because the majority of the homes had recently been purchased by minorities. What James did was illegal and is called: steering. blockbusting. wheeling. redlining.

blockbusting.

A license holder needs to know occupancy standards when leasing and/or managing residential property because any policy that directly or indirectly excludes families: could be a violation of the federal and state fair housing laws. would only violate the federal fair housing laws. could be a violation of the Equal Credit Opportunity Act. is a poor business policy.

could be a violation of the federal and state fair housing laws.

Fraud in a transaction involving real estate consists of a: faithful representation of material fact. false representation of material fact. truthful promise to do an act. true account of a material fact.

false representation of material fact.

A broker's relationship with his or her client is that of a(n): fiduciary. annexation. proprietor. occupant.

fiduciary

Illegal actions conducted solely by the borrower, who is motivated to acquire and maintain ownership of a house under false pretenses, such as misrepresented income and asset information on a loan application indicate: fraud for profit. fraud for property. money laundering. pecuniary fraud.

fraud for property.

A salesperson can only accept a commission for completing a real estate transaction from: the listing broker. the selling broker. his or her sponsoring broker. his or her client.

his or her sponsoring broker.

A __________ is a group that is protected from illegal discrimination under federal or state law. protected class fiduciary class registered class statutory class

protected class

According to the Texas Property Code, what is the maximum number of adults that a property owner may allow to occupy a two-bedroom, 1 bath apartment? 6 adults 3 adults 4 adults 5 adults.

6 adults

The law that ensures all consumers an equal chance to obtain credit is the: Home Mortgage Disclosure Act. Equal Credit Opportunity Act. Housing for Older Persons Act. Fair Initiatives Program.

Equal Credit Opportunity Act.

What type of fraud relates to stating the intention to live in a home on a loan application, but actually using it as an investment property? Investment fraud Live-in fraud Occupancy fraud Secondary home fraud

Occupancy fraud

What is the practice of designating certain neighborhoods as areas where loans will not be made? Blockbusting Redlining Classifying Compartmentalizing

Redlining

In order for a Texas broker to earn and collect a commission, four conditions must be met. Which is not one of the four conditions? The broker must have a valid real estate license at the time the transaction closes. The broker must have a valid real estate license at the time the buyer is procured. The broker must give the buyer a statutory "title insurance policy notice" that the buyer should get an abstract opinion or title insurance for the property. The broker must earn the commission during the term of the listing agreement or during a protection period (if one is placed in the listing agreement).

The broker must have a valid real estate license at the time the transaction closes.

What is the minimum requirement for occupancy specified by the federal Fair Housing Act? The federal Fair Housing Act specifies no minimum requirements for occupancy Three Seven Five

The federal Fair Housing Act specifies no minimum requirements for occupancy