Law and practice

A husband and wife listed their home for sale with a real estate agent. The agent received two offers from two different buyers at the same time on the property. What is the best advice the agent can give to the seller regarding these two offers?

a. Counter-offer to both buyers at the same time b. Accept both offers since the seller does not know which of the buyers is better qualified c. Hold onto the two offers and wait for a third offer d. Accept or counter-offer only one offer or reject both offers answer: D

Which of the following groups was NOT protected by Title VIII of the 1968 Federal Fair Housing Law as originally written?

a. National origin. b. Handicapped. c. Religion. d. Race. answer: B

A special assessment is a?

a. Re-evaluation of a property's value. b. Tax based upon benefit received. c. Tax levied equally against each property owner in the city or county. d. Tax levied only if ad valorem tax is sufficient to fund the proposed budget. answer: B

Nice and Easy Loan Company has a policy of either restricting the availability of loans or requiring lower LTV ratios for loans made in areas of the community which they consider "high risk" areas. This practice is known as:

a. Steering. b. Blockbusting. c. Redlining. d. Good business. answer: C

Which of the following controls a cash settlement?

a. The Equal Credit Opportunity Act. b. Regulation Z, Truth-in-Lending. c. RESPA. d. Legal property description. answer: C

The enforcement of the Fair Housing Law of 1968 is the responsibility of:

a. The Federal Housing Administration. b. The Department of Housing and Urban Development. c. The Federal National Mortgage Association. d. The Government National Mortgage Association. answer: B

What is the advantage of filing a Fair Housing complaint in Federal Court instead of with HUD?

a. The Federal court may impose higher monetary penalties. b. There will be more thorough investigation. c. There is no statute of limitations relative to filing a complaint with Federal Court. d. There is no advantage answer:A

Which of the following may be itemized as a personal deduction when paying Federal income taxes?

a. The amount of interest paid on a home mortgage. b. The amount of principal paid on a home mortgage. c. The cost of installing a fence around a residence. d. The cost of homeowner's insurance. ANSWER: A

If a person feels they have been discriminated against, when must they file a claim in civil court?

a. Within 90 days. b. Within 180 days. c. Within 1 year. d. Within 2 years. Feedback answer: D Civil actions must be taken within two years. Complaints to the DPOR should be filed within 1 year.

Under the statutory definition of a broker, which of the following would be required to have a real estate license?

a. An attorney-at-law. b. An auctioneer. c. An appraiser. d. None of these choices. answer: D

The Federal Fair Housing Act is intended to protect the public from all of the following, EXCEPT:

a. Blockbusting b. Price fixing c. Steering d. Redlining answer: B

If a person is alleged to have violated the Civil Rights Act of 1866, the complainant would file suit in which of the following?

a. District Court of Appeals. b. Superior Court. c. Civil Court. d. Federal Court. answer: D

An agent may discriminate against a potential buyer on the basis of:

a. Inability to pay. b. Sex. c. Rate. d. None of these choices. answer: A

Broker escrow accounts must be:

a. Provided by every licensed broker. b. The repository for all earnest money deposits, unless otherwise agreed upon by all parties to the contract. c. Designated and labeled as "escrow." d. Transferred to the company's operating account every five days. answer: C

Encouraging a homeowner to sell his or her property because minority group families are moving into the neighborhood is:

a. Redlining. b. Steering. c. Blockbusting. d. Puffery. answer: C

Which of the following statements, made by a broker, would NOT be considered puffery?

a. "This is the most beautiful house in the world" b. "You can double your money on this property in less that 2 years, I guarantee it" c. "This is the best deal we've had in years" d. "The property is close to everything answer: B

An owner is listing his rental property with a broker. Based on past experience, the owner feels that females cause less damage and tells the broker that he only wants to rent to females. What should the broker do?

a. Advise the owner that this restriction is illegal. b. Follow the owner's instruction because of the basic principles of property management (to protect the client's interest). c. Accept the listing and give preferential treatment to female applicants. d. Follow the owners' instructions because of the fiduciary relationship. answer: A

Gene owns a single-family home that he rents. He sold the property and realized a profit. Gene may defer payment of taxes on the profit:

a. By investing 100% of the profits in an IRA account. b. By purchasing another "like-kind" investment property. c. By claiming the once-in-a-lifetime exemption. d. Because profits made on residential investment property are non-taxable. answer: B

An action to oust someone who is not legally in possession of real property is called:

a. Execution. b. Ejectment. c. Deposition. d. Egress. answer: B

To qualify for a tax-deferred exchange, properties MUST:

a. Have the same income. b. Have different incomes. c. Be of like kind. d. Have deeds in corporation names. answer: C

Two brokers from different firms agree that they will charge the same commission rate for all property listed by their offices. Such action:

a. Is common practice. b. Is in violation of anti-trust laws. c. Is prohibited by RESPA. d. Violates the Fair Housing Law. answer: B

A person invested $5,000 in a limited partnership. One of his concerns was the amount of his liability. Since he is one of the limited partners, can he be held liable for more than his initial investment?

a. No, because he is guaranteed a 25% return on his investment b. No, because he is only liable for his initial investment c. Yes, because he is liable for three times the initial investment d. Yes, because limited partners are responsible for a limited amount of all debts answer: B

To be a professional property manager of a large apartment complex, one would need to know about all of the following EXCEPT:

a. Property maintenance. b. Property insurance. c. Human relations. d. Appraisal techniques. answer: D

A salesperson comments to a prospective buyer, "In my opinion, this is the best place in town to live." The salesperson is guilty of:

a. Puffery b. Misrepresentation c. Fraud d. Usury Feedback answer: A An opinion expressed by the sales agent is just that. It is puffery.

Which of the following statements BEST illustrates the difference between puffing and misrepresentation?

a. Puffing is illegal whereas misrepresentation is legal b. Puffing is a misdemeanor violation whereas misrepresentation is a felony violation c. Puffing is an exaggeration, not concealing material facts; misrepresentation is unjustly harming a person by concealing material facts d. Puffing is unjustly harming a person by concealing material facts; misrepresentation is an exaggeration answer: C

Which of the following is used to determine annual real estate taxes?

a. Sales price times tax rate. b. Assessed value times tax rate. c. Assessed value minus tax rate. d. Appraised value times tax rate. ANSWER: B

In 1968 the Supreme court ruled in the Jones vs. Mayer Co. case. The courts' decision upheld the law which provides protection on the basis of:

a. Sexual discrimination. b. Racial discrimination. c. Discrimination on the basis of national origin. d. Religious discrimination. answer: B

An interest rate that is charged on a loan that is higher than the legal limit violates which of the following laws?

a. Statute of Frauds. b. Usury. c. Regulation Z. d. Fair Housing. answer: B Usury laws specify maximum permissible interst rate.

A broker is representing a buyer. When the broker is showing property, he may NOT disclose to his buyer:

a. The current owner is infected with the HIV virus. b. Information the broker knows about the financial condition of the seller. c. Deed restrictions that might affect the buyer's intended use of the property. d. That the seller will not accept an offer based on VA financing. answer: A

If a deed restriction prohibits a use permitted by zoning, then:

a. Zoning controls. b. The deed restriction controls. c. Neither will prevail. d. The nature of the use will be the controlling factor. answer: B

A property manager who employs maintenance people for the property he manages would be responsible for all of the following EXCEPT:

a. Unemployment insurance b. Workmen's compensation insurance c. Workers' personal liability d. Federal and state tax withholding answer: C

If a person has been discriminated against in a real estate transaction, they would file a complaint with the:

a. Local Association of Realtors. b. National Association of Realtors. c. Department of Housing and Urban Development. d. Department of Health, Education and Welfare. answer: C

Jones leases a building and an earthquake destroys it. Usually:

a. The lease is no longer enforceable. b. The tenant must pay rent when the building is rebuilt. c. The landlord must rebuild the building. d. The tenant may rebuild the building and the landlord will have to reimburse the tenant. answer: A

The 1988 Amendment to the Federal Fair Housing Act, Title VIII, declared it unlawful to discriminate:

a. Against households with children under 18 years of age. b. On the basis of age. c. Because of sexual preference. d. On the basis of the sex of the buyer or renter. answer: A

Regulation Z requires that all of the following information be disclosed to the borrower EXCEPT:

a. Finance charges. b. The annual percentage rate of the loan. c. The cost of title insurance. d. The total amount of interest that will be paid. answer:C

RESPA prohibits all the following EXCEPT?

a. Kickbacks and rebates. b. Requiring that title insurance be purchased by a certain insurer. c. Allowing a lender to collect as many months' taxes as it wants to for a tax escrow account. d. Allowing the settlement agent to charge a fee for conducting the closing. answer: D

When leasing property under a net lease, the tenant could deduct, as a business expense, all of the following EXCEPT:

a. Maintenance. b. Fire insurance. c. Depreciation. d. Utilities. answer: C

In order to claim depreciation on a property, the property:

a. Must be owned in fee simple b. Must be free of debt c. Must be improved d. Must be your principal residence answer: C

A broker takes a listing from a seller who later tells the broker that the house should not be shown to a minority person. The broker should:

a. Note this on the MLS form. b. Make written acknowledgment of the instructions. c. Explain that he/she cannot comply because this violates Federal law. d. Avoid discussion of the request. answer: C

If a seller deposits the deed with an escrow agent but the seller dies before it is delivered to the purchaser, the transfer of title becomes effective on the date the deed was deposited into escrow due to the:

a. Parties' consent. b. Law of contracts. c. The parol evidence rule. d. The doctrine of relation-back. answer: D

Which of the following is established or set by Federal regulations as opposed to State or municipal governments?

a. Real estate license laws. b. Lending institution regulations. c. Zoning ordinances. d. Real estate tax rates. answer: B

What is the name of the map that shows the individual lots in a subdivision?

a. Record of lots b. Lot Register c. Subdivision map d. Plat map answer: D

A broker would be in violation of the Federal Fair Housing Law for all of the following actions EXCEPT:

a. Refusing a listing on a 4-unit apartment building because it is owned and occupied by a minority couple. b. Accepting a listing with the intention of changing the racial makeup of the neighborhood. c. Hiring salespeople, on the basis of sex, regardless of experience or qualifications. d. Refusing to show a couple from Germany, property located in a neighborhood that is composed mostly of people from Italy. answer: C

The commission received by a listing broker who is a member of a multiple listing service is:

a. Set by the MLS. b. Set by the local realty board. c. Negotiated between broker and seller. d. Negotiated between buyer and seller. answer: C

The Civil Rights Act of 1866 prohibits discrimination on the basis of:

a. Sex. b. Race. c. Religion. d. Marital status. answer: B

RESPA does not apply to which of the following?

a. The sale of residential property with 100% seller assisted financing b. A residential condominium unit. c. The sale of a townhouse in a new development of more than 25 units. d. A single family dwelling. answer: A RESPA, The Real Estate Settlement Procedures Act applies only to Federally related loans, therefore a house sold with 100% seller assisted financing would NOT be subject to RESPA.

An owner of a 12 unit apartment building lived in one of the apartments. The owner refused to rent to a person because of their national origin. Does the person have a valid complaint?

a. Yes, because it was a 12 unit apartment b. Yes, because other tenants were from his homeland c. No, because the owner lived there d. No, because the owner did not discriminate in advertising answer: A (A) Only a 1-4 plex might be exempt under the 1968 Fair Housing Laws, not a 12- plex.

A woman lived in a 4 family house and rented rooms to young college students. She would only rent to single white women but she did not care about their religion. Was this permissible?

a. Yes, because she had not discriminated because of their religion b. Yes, since she lived in one of the units, she was exempt from the Federal Fair Housing Laws c. No, discrimination based upon sex is always a violation of the Federal Fair Housing Laws d. No, discrimination based upon race is unlawful in all cases answer: D

Broker Dole was showing a buyer different apartments for rent in a specific area of a city. The buyer asked Dole to find an apartment that did not allow children as the buyer desired peace and quiet and felt that children would destroy their privacy. Broker Dole should:

a. tell the buyer to look for ads that read "adults only" apartments b. inform the buyer that this would be "steering" and therefore illegal c. inform the buyer that only bona fide retirement communities can legally restrict children d. inform the buyers that all properties are now open to children due to the 1988 amendments to the Fair Housing Act answer: C

Which of the following is required to hold a real estate license?

a. A person who, for compensation, helps sell his neighbor's home. b. A government employee selling land owned by the government. c. A property manager leasing property in the course of his employment for the owner. d. All of these choices. answer: A

Dave and Pat want to purchase the home that is occupied by their grandparents. They want to take title in such a way that will result in the least amount of income tax liability for them. How should a real estate salesperson or broker advise them?

a. Advise them to take title as tenant-in-common with their grandparents. b. Advise them to acquire title as joint tenants with each other. c. Advise them to take title as tenants-in-common but each with an equal interest d. Refer Dave and Pat to an attorney or tax advisor. answer: D

Funds in the escrow account may be dispersed for any of the following reasons EXCEPT when:

a. All principals to the transaction agree in writing to the disposition. b. A court orders disbursement of the funds. c. The seller demands forfeiture of the earnest money deposit. d. The transaction is consummated. answer: C

Owner Kelly is leaving the area for a one year period. She asks salesperson Boren to manage her rental house for $45 per month while she is gone. Which of the following is true in this situation?

a. Boren must work through her broker b. Boren must put the $45 in an interest bearing escrow account c. This is OK because the compensation is less than $1,000 d. This is OK because the time element is not more than one year answer: A

A homeowner sells his principal residence for a profit. Under which of the following circumstances may the homeowner avoid paying taxes on the profit realized from the sale?

a. By using the tax exempt $250,000 exclusion for a principal residence. b. By claiming the once-in-a-lifetime exemption, if the owner is eligible. c. No taxes are due as long as the profit is reinvested in real estate. d. Always, as profits realized from the sale of a residence are never subject to taxation. answer: A No taxes are due if the owner avoids paying taxes on the first $500,000 of profit if they are married or on the first $250,000 if they are single. They must have lived in the home as their primary residence for two of the last five years.

How can a broker best demonstrate his compliance with Fair Housing laws?

a. Display the Equal Housing Opportunity Poster in the office and all places of business b. Document all transactions with all clients or customers c. By showing all prospective buyers all property for which they are financially qualified d. All of the above answer: D

A developer is considering construction of a new subdivision in a rural area on a very hilly tract of land. What type of map will be most beneficial to the developer in making his decision to build?

a. Elevation. b. Plat. c. Contour. d. Flood plain. answer: C A contour map will show the builder the difference of the ground levels which is important when considering location of houses and drainage and style of houses. An elevation is a drawing representing the front view of a building.

In the usual property management agreement, the property manager can do all of the following EXCEPT:

a. Enter into a 2 year lease, verbally b. Hire and fire employees c. Collect rents every month d. Furnish the owner with a monthly statement of income and expenditures answer: A

A couple with good income and excellent credit want to buy and renovate an older home located in an economically distressed neighborhood. They have been turned down by 3 different lenders. This is an example of:

a. Good judgment on the part of lenders. b. Blockbusting. c. Redlining. d. Steering. answer: C This action by the lenders is redlining. The banks have taken the position that they will not loan money on property in THIS particular area of town.

What can a homeowner legally deduct on his or her personal income taxes?

a. Interest on the mortgage note b. Depreciation on their personal residence c. The IRS allows no deductions related to the financing of a home d. Price of the land answer: A

The Civil Rights Act of 1866:

a. Is considered to be a part of the 14th Amendment to the U.S. Constitution. b. Was the underlying basis for the decision in Jones vs. Mayer. c. Declared it unlawful to discriminate in all matters, not just housing, on the basis of the race of an individual. d. All of these choices. answer: B

Which of the following is (are) true regarding the Multiple Listing Service?

a. It can only accept residential listings. b. It can establish minimum and maximum commission rates. c. It can refuse to accept open listings. d. All of these choices. answer: C

The 1988 amendment to the Fair Housing Law affords protection on the basis of familial status. Which of the following best defines a family as it applies to this amendment?

a. Legally married persons. b. A household in which there are children related to the adults by blood. c. A household in which there are children under 18 years of age. d. Any household in which there are children, regardless of age. answer: C

According to the Truth-In-Lending Law, certain words used in advertisements "trigger" full disclosure of ALL the terms of financing. Which of the following statements would NOT require any additional disclosure?

a. Liberal terms available. b. Down payment - $1,000. c. Only 9 1/2 % interest. d. Payments of only $1,200 per month. answer: A "Liberal terms available" would not require additional details

The Real Estate Settlement Procedures Act:

a. Limits closing costs and settlement fees for services provided. b. Provides for disclosure of estimated closing costs. c. Limits the amount of commission charged. d. Designates a licensed settlement agent. answer: B

Many Korean families have purchased homes in an older neighborhood of your community. Most merchants in the area now cater to the Korean clientele. A Caucasian resident of the area has listed his house for sale with your firm. You list the property in the MLS. You also place a bi-lingual ad in the newspaper and a bi-lingual "For Sale" sign on the property. Are your actions discriminatory?

a. No, this is proper marketing practice. b. No, because you are targeting the market most likely to purchase the property. c. Yes, because national origin is protected by the 1968 Fair Housing Law. d. Yes, because bi-lingual ads are a form of steering. answer: A

When a consumer signs a note that places a lien on his or her property, the owner, in certain instances, has the right to rescind the agreement within 3 days, without penalty. This right is provided to the consumer by virtue of which of the following laws?

a. Real Estate Settlement Procedures Act. b. Truth in Lending Act. c. Equal Credit Opportunity Act. d. Statute of Frauds. answer: B

If a prospective buyer (who is of a minority group) asks an agent to show her properties, the agent should:

a. Show her properties in areas that are predominantly of the same minority group. b. Refer her to an agent in the firm of the same minority. c. Advise her that the firm does not handle people of her minority group and refer her to another brokerage. d. Show her any property for which she is financially qualified. answer: D

A broker brought a ready, willing and able minority buyer who signed an offer to buy a house at the listed price. Because of the buyer's race, the sellers refused the offer. The broker may legally take all of the following actions EXCEPT:

a. Sue the seller for his commission b. Advise the prospect of his right to complain to the U.S. Department of Housing and Urban Development (HUD) c. Warn the sellers that their refusal is a violation of Fair Housing laws d. Market the house only to non-minority customers answer: D

A broker obtained a ready, willing and able minority buyer who signed an offer to buy a house at the listed price. Because of the buyer's race, the sellers refused the offer. The broker may legally take all of the following actions EXCEPT:

a. Sue the seller for his commission. b. Advise the prospect of his right to complain to the U.S. Department of Housing and Urban Development. c. Warn the sellers that their refusal is a violation of the fair housing laws. d. Market the house only to non-minority customers. answer: D

It would NOT be considered commingling of funds, if:

a. The broker holds a deposit check at the request of the offeror until acceptance by the offeree b. The broker holds a deposit check at the request of the offeror after acceptance by the offeree c. The broker holds an earnest money deposit in his personal account until the offer is accepted or rejected d. The broker holds an earnest money deposit in his brokerage operating account because the deal is going to be all cash answer: A

Andrew, an owner, lists his home with salesperson Heidi with the provision that the house not be shown if he is not at home. Andrew leaves town on Monday for a two-week business trip. On Tuesday, Jose and Maria, a minority couple, contact Heidi and want to see Andrew's house. Heidi refuses to show the house. In this situation, which of the following statements is true?

a. The couple should file a discrimination suit against Andrew, the owner of the property. b. The couple should complain to Heidi's broker and demand to be shown the property. c. The couple should sue Andrew, Heidi and the broker for refusing to deal which is a violation of Fair Housing laws. d. Heidi's refusal to show the property is in keeping with her duties to Andrew and she has not violated the law. answer: D

A handicapped person asked the landlord for permission to alter the apartment. Which of the following is true regarding the costs of changing the apartment back after the termination of the lease?

a. The landlord can require that it be restored as it was before the alteration b. The landlord may raise the security deposit to cover renovation costs c. The landlord can require the tenant to move out if not comfortable d. The federal government will reimburse the landlord for any renovation costs if the landlord is unable to re-rent it to another handicapped person answer: A

Adeline is selling her own home as a For Sale By Owner (FSBO). On Sunday, a full price offer is made by an Asian couple. Adeline refuses the offer made by the couple. On Monday, Adeline accepts an offer, $4000 below the asking price from a Caucasian family. Has Adeline violated any laws and if so which one?

a. There is no violation because homeowners selling their own property are exempt from Federal Fair Housing laws b. Adeline has violated the Federal Fair Housing Act of 1968 c. Adeline has violated the Civil Rights Act of 1866 d. Adeline has violated the state license laws answer: C NO ONE is exempt from the Civil Rights Act of 1866 which prohibits refusal of selling, buying or exchanging personal AND real property on the basis of race.

A condominium advertises a pool and tennis court, but they have not yet been completed. Which is correct?

a. This is illegal advertising. b. It is allowed so long as the advertising states "not yet completed." c. This is allowed if they are labeled not yet completed and a completion date is specified. d. This is allowed since the rule of caveat emptor reigns. answer: C

Salesperson Sam publishes a local newsletter about the real estate market in the area, which he uses for prospecting and marketing purposes. He recently obtained a listing on one of the finest homes in the neighborhood, and has been heavily promoting that property in the newsletter. The property recently sold at a price well below the listed price. In the next newsletter, he prominently displays an article about the sale of the property and overstates the actual sale price of the property. Which of the following statements is correct in this circumstance?

a. While there are ethical concerns, since the actual sale price is a matter of public record, there is no violation of law. b. This would be considered puffing and would not be a violation. c. The newsletter itself is a violation, as it reveals confidential sale prices of properties. d. This would be considered a misrepresentation to third parties and would be a violation of law as well as an ethical violation. answer: D

A real estate broker wishes to deposit an earnest money check in his business operating account until settlement, so the purchaser can earn a higher rate of interest on his funds. Can he legally do this?

a. Yes, if the purchaser receives a comparison of available interest rates b. Yes, if the broker promises to insure such funds will be available at closing c. No, these funds must be placed in a separate escrow account d. No, the broker cannot guarantee a higher interest rate answer: C All funds held for others must be deposited in a separate escrow account, NOT in the business operating account.

A property manager leased a space to a handicapped person. The handicapped person wanted to make some modifications to the space. The property manager can require that the handicapped person:

a. pay a security deposit equal to six months rent when normally the amount is equal to one months rent b. pay the first and last months rent in advance rather than the usual first month only c. return the space to its original condition at the lessee's expense d. pay the first six months rent in advance rather than usual monthly payments answer: C

The intent behind the Statute of Frauds is to:

a. protect licensees from sellers who try and cheat licensees out of duly earned commissions b. put real estate transactions in writing c. protect the public from fraudulent actions by licensees d. prevent sellers from lying about property defects to prospective buyers answer: B The Statute of Frauds requires real estate sales contracts, deeds, and leases over one year to be in writing to be enforceable

Which of the following advertisements is a violation of federal law?

a. "luxury condominium - singles only" b. "honeymoon cottage in a secluded wooded area" c. "payments less than rent" d. "retirement community with a scenic view" answer: A

John Doe is trying to rent one bedroom in his house. An Hispanic applies and is told by the owner (Doe), "I will only rent to a Caucasian." Which law has John violated, if any?

a. 1968 Fair Housing Law. b. Civil Rights Act of 1866. c. Civil Rights Act of 1964. d. There is no violation, as owner John Doe is exempt from the law. answer: B

Claims filed with HUD for alleged Fair Housing violations must be filed within:

a. 90 days. b. 180 days. c. 1 year. d. 2 years. answer: C

The Equal Credit Opportunity Act makes it unlawful to refuse to grant credit to qualified applicants on the basis of:

a. Age. b. Marital status. c. Religion. d. All of these choices. answer: D

Under Truth-In-Lending requirements, the mortgagee:

a. Is regulated as to how much interest he may charge. b. Must give buyer an accurate amortization schedule. c. Must advise the borrower the total amount of interest that will be paid, if the loan is paid at the scheduled maturity date. d. Must allow the loan to be assumed. answer: C

Which of the following statements, included in an advertisement, would constitute a Fair Housing violation?

a. Non-smokers preferred. b. Military discount. c. Catholics preferred. d. Senior citizens welcome. answer: C

ABC Incorporated was organized with five stockholders. How would ABC Incorporated take title to the property?

a. Tenants in common b. Joint tenants c. Tenancy by the entirety d. Severalty answer: D A corporation acts as a single entity (just like a single person) and takes title in severalty.

In Fair Housing discrimination cases, the burden of proof is on the claimant. The claimant must be able to prove:

a. That discrimination occurred. b. That the act of discrimination was not provoked by the claimant. c. Only that the accused partly intended to discriminate. d. Actual damages resulted from the acts of the accused. answer: A

The truth-in-lending law requires full disclosure of financing terms when certain "trigger" terms are used in ads. Which of the following is NOT considered to be a financing term?

a. The APR (annual percentage rate) of the loan. b. Down payment required. c. Miscellaneous closing costs. d. The number, amount and frequency of payments. answer: C

If a person feels they have been discriminated against, when must they file a claim in civil court?

a. Within 90 days. b. Within 180 days. c. Within 1 year. d. Within 2 years. answer: C

A metes and bounds description is given as follows: "A piece of property beginning at the cross section of highways 32 and 7, thence South 355 feet, thence West 280 feet, thence North 260 feet, thence East 315 feet." Is this a valid description?

a. Yes, it is perfect as it begins at the intersection of two highways b. Yes, it is perfect as it has a point of beginning c. No, it is imperfect as it uses feet instead of rods d. No, it is imperfect as it does not end at the point of beginning answer: D All metes and bounds descriptions must begin and end at the same point (point of beginning).

A "For Sale By Owner" placed an advertisement on their property which read, "couples only - no children, please." This advertisement is:

a. illegal because of Fair Housing Laws regarding familial status b. illegal because one cannot advertise based on couples only c. legal because Fair Housing Laws do NOT apply to For Sale By Owners d. legal because the seller was NOT using the services of a broker answer: A

Which of the following is NOT specifically protected by fair housing statute?

a. People in a particular religious group. b. People who are physically handicapped. c. Current drug users. d. Persons previously confined to a mental institution. answer: C

Generally, a property manager may NOT be compensated by receiving:

a. A percentage of the gross lease. b. A fee for leasing. c. A fee for supervising repairs. d. Rebates from suppliers unless disclosed to the owner. answer: D

According to the 1988 Fair Housing law, which of the following is NOT considered to be handicapped?

a. A person confined to a wheel chair. b. A person addicted to a controlled substance. c. Someone suffering from a mental illness. d. A person who, by their actions, is believed to be insane. answer: B

For tax purposes, the initial cost of an investment property plus the cost of any improvements and minus any deductions to the property represents the investment's?

a. Adjusted basis. b. Capital gains. c. Equity. d. Salvage value. answer: A

According to the 1988 amendments to the Federal Fair Housing Law, which of the following would be allowed regarding a handicapped person in an apartment complex?

a. Evicting for playing loud music (excessive noise) at night b. Confining the person to certain areas of the complex c. Only allowing the person to use the recreation areas during certain times d. Refusing to rent to the person because of the handicap answer: A

Which of the following is NOT a form of steering?

a. Excluding African Americans or Hispanics from a Caucasian community. b. Attempting to attract only Hispanic prospects to an Hispanic neighborhood. c. Attempting to have Caucasian homeowners sell their homes by representing that African Americans are attempting to buy in the neighborhood. d. Efforts to keep Asians out of a Caucasian neighborhood. answer: C

Real estate taxes are based upon?

a. Fair value. b. Assessed value. c. Full value. d. Current value. answer: B

The Fair Housing laws do Act does NOT provide protection on the basis of:

a. Gender b. Handicapped c. Homosexuality d. Single parenthood Answer: C

Which of the following is prohibited by RESPA?

a. Kickbacks. b. Steering. c. Blockbusting. d. Redlining. answer: A

Depreciation can be claimed on all of the following property EXCEPT:

a. Land b. Office furniture c. Parking lots d. Shrubbery answer: A