Marketing Regulations (Purchase and Rental)

Which of the following may be considered a stigmatized property?

A home where a homicide, suicide, or haunting occurred.

What is true about a material fact that a licensee must disclose?

A material fact may have more or less of an effect on a buyer based on the buyer's needs and values.

Which of the following is an example of market allocation?

Acme Realty and Hawthorne Realty Group agree to divide the city in half, each working its own half.

Which of these scenarios is a violation of federal fair housing laws?

At his client's request, Miguel shows his client only properties in mainly Hispanic neighborhoods.

Which one of these situations represents the illegal practice of redlining?

Based on the neighborhood's demographics, Hunter, a mortgage broker, refused to underwrite mortgage applications from applicants who want to buy in specific neighborhoods.

Marcus, who primarily represents sellers, hired multiple groups of actors to portray large, poor families who attend an open house in a neighborhood of mostly retired, wealthy families. He then mailed postcards to residents, offering to purchase their properties quickly for a discounted price before the neighborhood make-up changes. What is this an example of?

Blockbusting Marcus is trying to induce homeowners to sell by implying that a different type of family is moving into the neighborhood.

Which act was the first to prohibit any exceptions for discrimination based on race or color?

Civil Rights Act of 1866

What does CAN-SPAM Act stand for?

Controlling the Assault of Non-Solicited Pornography and Marketing Act

Blockbusting induces "white flight" or "panic selling." When this happens, what happens to housing prices?

Decrease

As a stipulation of a specific act, lenders must offer reasons when rejecting loan applications and must respond to all applications within 30 days. What's the name of this act?

Equal Credit Opportunity Act of 1974

What entity enforces the Telephone Consumer Protection Act?

Federal Communications Commission (FCC)

Because Shawna is using social media to market her real estate services, she must ______.

Follow all of her state's and brokerage's regulations related to social media marketing.

Select the statement that best describes a licensee's responsibility related to disclosing material facts.

Licensees should determine what their state requires them to disclose.

Corinne is 68 years old and employed full time. She's of Spanish descent, is raising her 12-year-old grandson, and lives with her partner, Katherine. She requires an accessible apartment because she uses a wheelchair. Under which of the following federally protected classes might Corinne be protected if she faces housing discrimination?

National origin, sex, disability, and familial status

Marilyn is reviewing the inspection report with her buyer clients. Which of the following issues in the report should Marilyn flag as significant?

Presence of mold

Early in its history, the Federal Housing Administration officially supported keeping "incompatible" racial groups out of the newly developed white suburbs. What is this practice known as?

Redlining

Morrison lives in a predominantly Latino neighborhood. He applied for a mortgage loan to purchase a house in this neighborhood, and later discovered that the lender charged him a higher interest rate than similarly qualified borrowers buying homes in non-Latino neighborhoods. This might be the practice of ______.

Reverse redlining Reverse redlining is the practice of charging higher interest rates or fees to nonwhite borrowers.

What types of email actions are prohibited by the CAN-SPAM Act?

Sending an email to try to get a listing with a subject line, "I'll buy your house!" The CAN-SPAM Act prohibits emails with false or misleading subject lines.

Which of these is least likely to protect your clients from wire fraud?

Sending information over unencrypted wireless networks.

It's fine for Clarissa to phone Gerry, who's on the National Do Not Call Registry, even for solicitation purposes, because ______.

She has an established business relationship with Gerry. If you've helped a client purchase a home, you may follow up with that client who's on the registry for a period of 18 months after your working relationship ends. After 18 months, unless the consumer agrees to continued contract or a new business relationship is established between you, no further calls should be made.

If a private individual owner doesn't own more than three single-family homes at one time, which exemption from the Fair Housing Act could apply?

Single-family housing sold or rented without the use of a broker

What is the name of the federal law that sets forth guidelines regarding telephone solicitation?

Telephone Consumer Protection Act of 2003

Which of these might bring a charge of illegal steering against a licensee?

When working with single female clients, Cassandra is careful to promote properties in neighborhoods she considers safe.

Nathan is placing a listing ad for a soon-to-be-built expensive home in a gated community. He includes the words "exclusive" and "ultra-conservative community" in his ad. Does this violate fair housing law?

Yes, because it implies that the listing is suitable only for a particular type of buyer.

You've listed a 1918 Craftsman with some significant foundation issues. So significant that the buyers walked away after the inspection. They provided you and your sellers with a copy of the inspection report, which also points out some wiring concerns. At today's open house, a prospective buyer asks to see a copy of any inspections done on the property. What should your response be?

You should disclose any adverse material facts, but you don't have to provide the report.