UNIT 2 - ETHICS, FAIR HOUSING, TRUST FUNDS, & OTHER LEGAL ISSUES

How much of a broker's personal funds may be contributed to a client's trust fund bank account to offset any bank service charges?

$200

In Case Example #12, what legal and ethical violations did the broker of Big Realty commit by trying to influence appraisal values?

- The broker for Big Realty acted unethically in trying to influence another broker to act in an unethical and illegal manner. - Big Realty also disregarded the interest of their buyers if a buyer agency or dual agency existed. - If the lender is federally insured, it would be a federal crime to fraudulently influence appraisal values.

To avoid gray areas that could be perceived as sexual harassment, one should avoid

- sexually oriented jokes and anecdotes. - patting, hugging, and touching others. - dating co-workers.

The Real Estate Commissioner's suggestions for professional conduct include that the agent:

- stay in close communication with clients or customers. - report violations of the real estate law to the Department of Real Estate. - submit all written offers in a prompt and timely manner.

The fundamental basis for Fair Housing throughout the United States stems from the

13th Amendment of the Constitution.

In Case Example #9, broker Kritski and home inspector Plunk exchanged gifts of disparate value. What could broker Kritski do to avoid apparent ethics violations involved in this tradition?

Accept Plunk's gift, but do not offer Plunk a gift in exchange

The Real Estate Commissioner's authority to regulate discriminatory activities of real estate licensees is contained in

Article 10 of the Commissioner's Regulations.

The Civil Rights Act that applied only to race was the:

Civil Rights Act of 1866

Which of the following statements regarding ethics is TRUE?

Ethics tends to precede the law.

The best test of ethics is the

Golden Rule.

Redlining is prohibited by the

Holden Act.

In Case Example #6, which of the following actions of the apartment manager was illegal?

Jackson was not told about the upcoming vacancies while this information was volunteered to Clyde, a single white male.

In Case Example #7, why would an agent make a disclosure about a property that might jeopardize the sale if California law does not mandate the disclosure?

Nondisclosure may be legal under California law but it may be unethical.

The National Association of Real Estate Brokers® designates its members as

Realtists

What is the best test to evaluate if an act is ethical?

The Golden Rule

The California Act that prohibits discrimination by all California businesses is the:

Unruh Act

An action would most likely be considered ethical if you

acted to prevent others from being harmed.

The Sherman Antitrust Act prohibits brokers from

agreeing with other brokers on minimum fees to charge.

The Civil Rights Act of 1968 prohibits:

both blockbusting and steering.

What is the ethical question that arises from the broker's actions in Case Example #1?

charging twice the normal commission rate for no legitimate reason

The Holden Act prohibits discrimination by

financial institutions.

While the Unruh Act applies to discrimination by businesses, the Rumford Act applies to

housing discrimination.

The now prohibited practice of secretly compensating agents who steered business to specific service providers is called

kickbacks

Redlining refers to a refusal to:

loan in designated areas.

A broker may discriminate against a tenant who:

neither has AIDS nor has a guide dog.

In Case Example #3, broker Zwerik's ethical violation resulted from

not allowing other brokers to show the property

The Americans with Disabilities Act (ADA) prohibits discrimination based on an individual's

physical or mental disability

A broker is showing property to a person who is an ethnic minority. The broker decided to show property in a certain area because of his customer's race. This is an example of

steering

Advertising a home in an area occupied solely by members of a minority group only in newspapers directed toward that minority group would be regarded as:

steering