Fake Estate 2

1. The Civil Rights Act of 1866 prohibits discrimination in housing based on a. race. b. religion. c. sex. d. handicap

A

1. Which of the following is an example of dual agency? a. The broker acting for both the buyer and the seller in the same transaction b. Brokers cooperating with each other c. The broker representing different principals d. The broker listing and selling the same property

A

10. The provisions of the Fair Housing Act apply a. in all states. b. only in those states that have ratified the act. c. only in those states that do not have substantially equivalent laws. d. only in those states that do not have specific state fair housing laws.

A

17. Steering is a. leading prospective homeowners to or away from certain neighborhoods. b. refusing to make loans on properties located in certain areas. c. a requirement for the broker to join the multiple listing service (MLS). d. a practice of standardizing commission rates.

A

18. When a salesperson represents that minorities are moving into the area to get homeowners to sell their properties, this activity is a. panic selling. b. steering. c. discriminatory advertising. d. legal as long as it is true

A

18. When should a Pennsylvania licensee present the Consumer Notice to a prospective buyer? a. At the initial interview b. After showing a couple of properties c. After the buyer makes an offer d. Within three days of closing

A

3. A real estate broker acting as the agent of the seller a. is obligated to render faithful service to the principal. b. can disclose the seller's minimum price. c. should present to the seller only the highest offer for the property. d. can accept an offer on behalf of the seller.

A

4. A discrimination suit may be filed in federal court by the a. aggrieved person because of racial discrimination. b. Department of Housing and Urban Development. c. state or county nondiscrimination officer. d. Federal Housing Administration.

A

6. The Fair Housing Act of 1968 is contained in a. Title VIII of the Civil Rights Act of 1968. b. the Civil Rights Act of 1866. c. the Civil Rights Act of 1964. d. Executive Order No. 11063.

A

9. A seller has listed her home with a broker for $190,000, and the broker tells a prospective buyer to submit a low offer because the seller is desperate to sell. The buyer offers $180,000 and the seller accepts it. In this situation, the broker a. has violated his agency relationship with the seller. b. was unethical, but the seller did get to sell her property. c. acted properly to obtain a quick offer on the property. d. is authorized to encourage such bids for the property

A

10. When a listing broker was told by his principal not to advertise the listing in a particular newspaper, which was out of the area, the broker complied because the broker a. had never advertised in that newspaper anyway. b. must obey the lawful instructions of his principal. c. was not intending to advertise the property at all. d. is allowed to advertise only in local newspapers.

B

12. An agent has a duty to disclose to the principal every step taken in the transaction of the principal's business. This is because the a. commission can be adjusted up or down according to the agent's efforts. b. agent has fiduciary obligations to the principal. c. terms of the listing contract require the agent to do so. d. terms of the purchase contract require the agent to do so.

B

12. The refusal of a lending institution to make a residential real estate loan strictly because of the racial or ethnic composition of the neighborhood is called a. blockbusting. b. redlining. c. steering. d. panic peddling.

B

14. Which of the following BEST defines law of agency? a. The selling of another's property by an authorized agency b. The rules of law that apply to the responsibilities of a person who acts for another c. The principles that govern one's conduct in business d. The rules and regulations of the state's licensing agency

B

17. A broker's salesperson lists a unit for sale in a condominium building. The salesperson in this transaction a. has a direct contractual relationship with the owners of the unit. b. acts on behalf of the broker. c. acts on behalf of the condominium association. d. must find a buyer for the unit to obtain a share of the commission.

B

20. The real estate broker's responsibility to keep the principal informed of all the facts that might affect a transaction is the duty of a. care. b. disclosure. c. obedience. d. accounting.

B

25. Which activity is legal? a. Charging a family with children a higher security deposit than that charged to adults b. Requiring a person with a disability to establish an escrow account for the costs to restore a property after it has been modified c. Picturing only white people in a brochure as the "happy residents" in a housing development d. Refusing to sell a house to a person who has a history of mental illness

B

3. It is illegal for a lending institution to refuse to make a residential real estate loan in a particular area only because of the a. questionable economic situation of the applicant. b. physical location of the property. c. applicant not being of legal age. d. deteriorated condition of the premises.

B

4. Statements by a real estate licensee exaggerating the benefits of a property are called a. polishing. b. puffing. c. prospecting. d. marketing.

B

5. In order to file a complaint of discrimination, the person alleging a problem must a. be able to prove that discrimination occurred. b. suspect that discrimination occurred. c. be able to prove that the discrimination was intentional. d. be able to produce witnesses to the discrimination.

B

7. All of the following are considered fraudulent EXCEPT a. deceitful or dishonest practices. b. exaggerated statements about the property. c. omitted statements of material fact. d. misstatements about the property.

B

8. As an agent for the seller, a real estate broker can a. guarantee a prospective buyer that the seller will accept an offer at the listed price and terms. b. solicit an offer to purchase the property from a prospective buyer. c. advise a prospective buyer of the best manner of taking title to the property. d. change the terms of the listing contract on behalf of the seller.

B

11. In a typical agency relationship between the broker and the client, the broker's commission is determined by a. state law. b. the local real estate board. c. mutual agreement. d. minimums based on the property type.

C

13. A salesperson employed by a broker told a prospective buyer that the house she was looking at is "the best house in the area." Because of this statement, the a. salesperson was guilty of fraud. b. broker was guilty of fraud because the employing broker is responsible for the actions of the salesperson. c. salesperson would be viewed as puffing. d. salesperson would be guilty of fraud only if the buyer purchased the house.

C

14. Discrimination on the basis of any of the following might be construed as violations of fair housing laws EXCEPT a. ethnic considerations. b. sexual considerations. c. economic considerations. d. religious considerations.

C

16. A salesperson from a brokerage firm sells a buyer a property listed by another brokerage firm that practices designated agency. The salesperson does not have an agency contract with the buyer. Under Pennsylvania law, the salesperson may be presumed to represent a. the seller. b. the buyer. c. no one. d. the public.

C

19. A salesperson who represents the seller is showing a house to a prospective buyer. The salesperson knows that the house has a wet basement. Which statement is TRUE? a. Withholding the information protects the confidence of the seller. b. Disclosing the information might create a fiduciary with the buyer. c. Withholding the information prevents the buyer from making an informed decision. d. Disclosing the information violates the fiduciary to the seller.

C

2. The agency responsible for the enforcement of the Fair Housing Act is the a. Department of Justice. b. Federal Housing Administration. c. Department of Housing and Urban Development. d. Department of Veteran Affairs

C

2. The relationship of a broker to a client is that of a. a trustee. b. a subagent. c. a fiduciary. d. an attorney in fact.

C

20. Under the federal Fair Housing Act, it is illegal to discriminate because a. a person has a history of dangerous behavior. b. of a person's marital status. c. a person has AIDS. d. a person has been convicted of distributing a controlled substance.

C

21. A broker employs several salespeople, one of whom is a minority. The broker tells this salesperson to work only with minority buyers and solicit listings in only predominately minority neighborhoods. Which of the following is TRUE? a. The broker is entitled to direct the activities of this salesperson. b. The fair housing laws do not apply to the broker's practices. c. The salesperson's rights have been violated by the broker. d. The salesperson should be satisfied with the broker's policy

C

22. The restrictive covenants in a condominium complex prohibit pets. A prospective buyer with a physical disability relies on an animal for assistance. Which statement is TRUE? a. The condominium has the right to establish this private restriction if it chooses. b. This restriction is unenforceable only if the animal is used to assist people with visual impairments. c. This restriction is unenforceable when any person with a disability uses an animal for assistance. d. The condominium can waive the enforcement of the covenant only by accommodating the animal.

C

23. The Americans with Disabilities Act requires that a. all real estate is free of barriers to people with disabilities. b. all employers adopt nondiscriminatory employment practices. c. reasonable accommodations be provided to people with disabilities. d. the existing premises must be remodeled regardless of the cost involved.

C

24. Which activity is illegal? a. Refusing to lend money to a minority person who has poor credit b. Refusing to allow families with children to live in a housing development intended exclusively for people older than 62 c. Refusing to hire an otherwise qualified person because he cares for his wife who has a disability d. Refusing to rent to a person who has been convicted of distributing cocaine

C

6. Unless some other written agreement has been made, the broker will usually receive the sales commission from the seller when a. the purchaser takes possession of the property. b. the seller lists the property with the broker. c. the transaction is closed. d. an offer is procured from a ready, willing, and able buyer.

C

8. Real estate brokers are required to do all of the following EXCEPT a. take affirmative marketing action in advertising. b. take affirmative marketing action in canvassing. c. show all of the properties they have listed. d. prominently display the equal housing opportunity poster.

C

9. Protection from threats or acts of violence against those who assist and encourage open housing rights is found in the a. Civil Rights Act of 1866. b. Civil Rights Act of 1964. c. Fair Housing Act of 1968. d. Fair Housing Amendments Act of 1988.

C

11. Actions that are illegal under federal and state fair housing laws include all of the following EXCEPT a. offering advantageous loan terms to encourage the resegregation of a residential area. b. refusing to show certain residential property to non-English-speaking individuals. c. channeling members of a certain minority group into an area already predominately occupied by members of that minority. d. refusing to show certain residential property to people who are not financially qualified

D

13. Discrimination based on familial status was prohibited with the passage of the a. Civil Rights Act of 1866. b. Civil Rights Act of 1964. c. Fair Housing Act of 1968. d. Fair Housing Amendments Act of 1988.

D

15. A broker who is the agent of the buyer should do which of the following? a. Disclose to the seller that the buyer is a minority person. b. Disclose to the seller the maximum price the buyer is willing to pay. c. Present to the seller only offers that are acceptable. d. Advise the buyer whether the listing price of the seller's house is unrealistic.

D

15. There are exceptions to some fair housing laws for all of the following criteria EXCEPT a. retirement communities. b. private clubs. c. religious organizations. d. racial considerations.

D

16. The practice of channeling families with children away from other buildings into an apartment building where other families with children reside is a. most practical. b. blockbusting. c. redlining. d. steering.

D

19. The federal Fair Housing Act prohibits all of the following EXCEPT a. blockbusting. b. discriminatory advertising. c. redlining. d. discriminating on the basis of marital status.

D

5. A broker is permitted to represent both the seller and the buyer in the same transaction when a. the principals are not aware of such action. b. the broker is a subagent rather than the agent of the seller. c. commissions are collected from both parties. d. both parties have been informed and agree to the dual representation.

D

7. A prospective homebuyer who is black inquires about the availability of a home in a predominately white residential neighborhood. What should the broker say to this prospect? a. "You wouldn't want to live in this area because the neighbors are trying to protect the integrity of the area." b. "I'd be happy to show you homes in other areas where black people are welcome." c. "The residents here have expressed a desire to keep the area homogeneous with no minorities." d. "I'll be pleased to show you any houses that you're interested in."

D