Module 7
Which of the following actions would be a violation of anti-trust laws?
Two brokers agree to only market their services in specific areas of the community
Dan Sanders, a broker, is contacted by the United Coalition of Bigots. The UCB wants Dan to sell two pieces of rental property that it owns. UCB is a properly licensed, non-profit religious organization. One stipulation that they want placed in the listing is that the property not be sold to anyone that is Irish. Dan:
Cannot accept the listing
If included in an advertisement, which of the following statements would constitute a Fair Housing violation?
Catholics preferred
How is the amount of a salesperson's commission negotiated within a firm?
Commission amounts are negotiated with Brokers
A real estate agent tells a buyer client that the property values in a specific area have been holding steady or increasing but the same agent actually reviewed the property value report for that area the week prior and noticed they were declining. What is the agent guilty of?
Deliberate misrepresentation
Bernard (the broker of Prairie Properties, Inc.) has received a very large earnest money check from Bernadette in connection with an offer she's making on a piece of property. Bernard must:
Deposit this check in the firm's client trust account
Bill is a 63 year old part time employee who has legal custody of his 17 year old nephew Zach. Bill is blind and his life partner, Carl, of 11 years helps him with daily tasks. Bill, Carl and Zach are looking to move from their rural home to a home closer to the city which will be more convenient and closer to amenities. If Bill were to experience housing discrimination, under which protected class could he file a complaint?
Either B or C
All of the following are sub-specialties of real estate and require specialized training, EXCEPT:
Escrow accounts
Who is required to comply with the Fair Housing Laws?
Everyone, unless specifically exempted by the law
A broker takes a listing from a seller, who then says that the house must not be shown to a minority. The broker should:
Explain that he cannot comply because this violates federal law
A consumer is protected by the Do not Call Rules:
If they request no to be called again
A salesperson who engages in steering might be subject to all of the following results, EXCEPT:
Immunity from suit due to broker's primary liability
Two brokers agree that they will charge the same commission rate on all property listed by their offices. Such an action:
Is in violation of anti-trust laws
Design and construction requirements under the Fair Housing Act include all of the following EXCEPT:
Light switches must be within three feet from the door
A listing broker obtained a ready, willing, and able buyer to purchase at the listed price. However, the sellers refused the offer because of the buyer's race. The broker may legally take all of the following actions, EXCEPT:
Market the house only to non-minority customers
All of the following must comply with the Truth In Lending Act (TILA) EXCEPT?
Media
Regarding leasing to handicapped persons, what is the difference between reasonable modifications and reasonable accommodations?
Modifications are done by the tenant, accommodations are provided by the landlord
The following are all approved methods clients may use to pay buyer and seller agent commissions, EXCEPT:
Net return/excess profit above seller's desired profit
Joan is renting a room in her house. She advertises for a "Single Female." Does Joan's request for a female violate the Fair Housing Act?
No, because Joan appears to satisfy a limited exception
A real estate broker wishes to deposit an earnest money check in his business operating account in order to receive a higher interest rate on the purchaser's funds. Is he legally allowed to do this?
No, these funds must be placed in a separate escrow account
A real estate broker wishes to deposit an earnest money check in his business operating account so the purchaser can earn a higher interest rate on her funds. Can he do this?
No, these funds must be placed in a separate escrow account
A local real estate broker knocks on several doors in a neighborhood to discuss the recent decline in the rating of the elementary school, which the broker attributes to the large influx of refugees from Somalia moving into the area. The Broker offers to list the houses to enable the owners to move and get into a more highly rated school district. Is this a good real estate practice by the broker?
No, this broker is actually violating the law
Many Korean families have purchased homes in a specific neighborhood of your community. Now, local merchants are marketing to the Korean clientele. A Caucasian resident listed his house with your firm and you add the property to the MLS. You also place a bilingual ad in the newspaper and a bilingual "For Sale" sign on the property. Are your actions discriminatory?
No, this is proper marketing practice
The Federal Fair Housing Law is intended to protect the public from all of the following actions, EXCEPT:
Price fixing
Which of the following does the Sherman Act seek to prevent?
Price fixing, boycotting and monopolies
The Brokers of two local firms decide they will both set and advertise a standard commission rate of 5% in order to attract the buyers and sellers from the adjacent community. What are the Brokers guilty of and in violation of?
Price fixing, in violation the Sherman Act
A couple has a good income and excellent credit. They want to buy and renovate a home in an economically distressed neighborhood, but have been turned down by 3 different lenders. This is most likely an example of:
Redlining
A developer has been successful in the renovation and redevelopment of apartment projects. The developer has an excellent credit history, but has been denied a loan to renovate a project in a crime-ridden area of town. This is an example of:
Redlining
In an all elderly housing development, 90% of the units are occupied by persons over age 55. A single mother with 2 small children wants to rent one of the units. Which of the following statements is true according to the Fair Housing Law, as amended in 1988?
The applicant can be denied a lease
It would NOT be considered commingling of funds if:
The broker holds an earnest money check, as requested by the offeror, until acceptance by the offeree
It would NOT be considered commingling of funds, if:
The broker holds an earnest money deposit check, at the request of the offeror, until acceptance by the offeree
Which of the following is the best example of puffery?
"This neighborhood has the best views in the area"
Which of the following statements, if proven false and made by a broker, is least likely to be puffing?
"You can double your money on this property in less than 2 years"
John Doe is trying to rent a bedroom in his house. A Latin American applies and is told by the owner (Doe), "I will only rent to a Caucasian." Which law has John violated, if any?
1968 Fair Housing Law
A person thinks that a landlord discriminated against him when applying for a rental. Three months later, he decides to file a complaint with HUD. How much longer does the person have to file his complaint?
9 months
Which is an example of Unauthorized Practice of Law (UPL) in the real estate field?
A Broker drafting a new version of sales contracts for the firm employees to use
May brokers charge an extra fee for drafting real estate contracts?
No, unless the broker is a licensed attorney
What type of penalties are imposed for Federal Fair Housing violations?
Order to correct the violation
What is the act of charging different amounts to different buyers for identical goods or services called?
Price discrimination
The Federal Fair Housing Law is intended to protect the public from all of the following EXCEPT:
Price fixing
A salesperson comments to a prospective buyer: "In my opinion, this is the greatest house in town." This statement most likely amounts to:
Puffing
All of the following are email requirements set forth in the CAN-SPAM Act, EXCEPT:
Standard signature block including a phone number
Which of the following sets requirements/limitations for commercial product and service, including real estate, emails?
The CAN-SPAM act
If a person feels they were discriminated against in a real estate transaction, they would file a complaint with:
The Department of Housing and Urban Development
Which of the following Federal Agencies may prosecute violations of the Federal Fair Housing Act:
The Department of Housing and Urban Development (HUD)
Enforcement of the Fair Housing Law of 1968 is the primary responsibility of:
The Federal Department of Housing and Urban Development
A religious organization operates a hotel as a means to raise money and support themselves. Which of the following statements is true?
They may limit room rentals to members of the organization
An example of conversion is:
Using one client's escrow deposit to pay another client's expenses
Two brokers agree to charge the same commission rate on all property listed by their offices. Such an action:
Violates Anti-Trust laws
A private homeowner is selling his property, but refuses to enter into a contract because the offerer's are a minority couple. Has the homeowner violated the law and, if so, which law?
Yes, the Civil Rights Act of 1866
Since 1995, Federal rules have prohibited calls to any consumer who:
asked not to be called again
Fair Housing posters must be posted:
at a broker's place of business
The Federal Fair Housing Act prohibits all of the following actions except:
discriminating on the basis of marital status
Wally Wells, a licensed salesperson, obtained an open listing agreement with Client 1 on Parcel A, and an exclusive right-to-sell agreement with Client 2 on Parcel B. Both listings expire without an offer. Three days later, Clients 1 and 2 exchange Parcels A and B under a 1031 exchange. Wally will receive:
no commission, so long as Wally was not the procuring cause
The Civil Rights Act of 1866 prohibits housing discrimination based on:
race
A salesperson may only advertise a property for sale if she:
uses the employing broker's name in the advertisement
When does a broker earn a commission?
when the offer to purchase has been signed and accepted by the seller
According to the 1988 Fair Housing Law, which of the following persons would NOT be considered as handicapped?
A person addicted to an illegal drug
Who may access the National Registry?
All of the above
The rate of a broker's commission, and any fees he or she may charge, is:
Always negotiable
What options do consumers have if they receive unsolicited and unwanted text messages or faxes?
Any of the above
Employees generally:
Both A and B
The Truth In Lending Act (TILA) applies to advertisements that promote:
Both A and B
The Fair Housing Act does not apply to:
Commercial property
The stealing of escrow funds is called:
Conversion
Tyler, a buyer's agent, received a $3,000 earnest money check on Friday evening so he deposited it into his personal account for safekeeping over the weekend. The balance in his account on Saturday was $3,900 and he wanted to buy a new 75" TV that was on sale. Tyler spent $1,200 on the TV so on Monday the balance in his account was only $2,700. He knew he had to give the $3,000 earnest money deposit to his broker so he simply transferred money from his savings account to cover the $3,000 deposit. Which of the following best describe what Tyler has done?
Conversion and Commingling
How can a broker best demonstrate his compliance with Fair Housing Laws?
Document all transactions with all clients or customers
When is a salesperson an agent of their broker and a subagent to a listing seller?
Either A or B
All of the following classes are protected under Federal Fair Housing Laws, EXCEPT:
Elderliness
Juanita, a salesperson with PDQ Realty, has shown Julia three properties listed by Lots Realty. Julia wants to purchase a property and subdivide it into two lots. Julia asks Juanita, "Given your extensive experience in the real estate industry, which of the three properties would be the best candidate for subdivision?" What should Juanita do?
Explain that property subdivision is not part of a real estate agent's expertise, then encourage Julia to get an expert's opinion before putting in an offer
Which of the following groups was NOT protected by Title VIII of the 1968 Federal Fair Housing Law?
Handicapped
Under the federal CAN-SPAM Act, a broker would be in violation if:
He sent an email solicitation that failed to provide the broker's mailing address
A broker would be in violation of the Federal Fair Housing Act for all of the following actions, EXCEPT:
Hiring salespersons on the basis of sex, regardless of experience or qualifications
Nice and Easy Loan Company has a policy of either restricting the availability or requiring lower LTV ratios for loans made in "high risk" areas of the community. This practice is known as:
Redlining
Which of the following actions would constitute a violation of federal Fair Housing Laws?
Refusing to sell to a person because of his or her national origin
A blind person with a Seeing Eye dog wants to rent an apartment in a building that has a "no pets" rule. The landlord may:
Require that upon termination of the lease, the tenant must pay for any damage caused by the dog
A Hispanic family asks to see homes in the $125,000 to $140,000 price range. The broker only showed them property in integrated areas of the community, though there were appropriately priced homes in all-white areas of town. The broker is guilty of:
Steering
Prospective buyers discuss their housing needs with a sales agent. The agent discusses certain property, but avoids talking about houses located in a specific area that meet the buyers' criteria. Such action could be known as:
Steering
A broker is representing a buyer. When the broker is showing property, he must NOT disclose to his client:
That the current owner as HIV
What is the purpose of a trust account?
To hold money for third parties
Betty the buyer would like to purchase property being sold by Sam the seller. Betty sees that the house has been on the market for a few months and that the listing is about to expire. Betty makes an offer to Sam the day after the listing expires in order to deal directly with Sam and avoid paying commission fees. Will Sam's agent have any right to a commission since the listing is expired?
Yes, if the listing agreement contained a protection clause
A developer requires that any person who buys a home in a development must also agree to list his house with the developer when and if he decides to sell in the future. Is the developer in violation of anything?
Yes, this practice is illegal
An agent listed a property where a murder recently occurred. If the agent shows the property without advising potential buyers of the murders, he would be guilty of:
nothing
The difference between fraud, misrepresentation, and puffing turns primarily on:
opinion
Which of the following relationships satisfies the established business relationship exemption to the National Do Not Call Registry?
A consumer that lists property with you 10 months ago
An owner is listing his rental property with a broker. Based on past experience, the owner thinks that females cause less damage. He therefore tells the broker that he only wants to rent to females. What should the broker do?
Advise the owner that this restriction is illegal
The 1988 Amendment to the Federal Fair Housing Act, Title VIII, declared it unlawful to discriminate:
Against households with children under 18 years of age
Brokers are responsible for supervising which of the following people?
All of the above
The difference between an employee and an independent contractor depends on:
All of the above
Under the Fair Housing Act, enforcement of violations has to begin with:
All of the above
Under the Federal Fair Housing laws sex is a protected class, regarding real estate transactions what does this protected class mean?
All of the above
What do private associations such as the National Association of Realtors (NAR) provide to agents?
All of the above
What obligations do Federal laws currently impose on SPAM?
All of the above
Which agencies enforced the CAN-SPAM Act?
All of the above
Which of the following qualifies for the familial status fair housing exemption?
All of the above
A buyer tells his agent he wants to buy a property they previously looked at but asks the agent to verify that the HOA covenants allow above ground pools. The agent remembers seeing another home in the neighborhood had an in ground pool and tells his buyer there are no restrictions for pools in that neighborhood. At closing the buyer receives a copy of the HOA covenants and finds that only in ground pools are allowed. What is the agent guilty of?
Both A and C
In which of the following scenarios should an agent avoid giving advise and refer the client to a professional?
Both B and C
Which of the following prohibits the sending of unsolicited advertisements to any fax machine?
Both B and C
Which of the following would constitute an Unauthorized Practice of Law (UPL) for a real estate agent?
Both B and C
Who has ultimate responsibility for the management of real estate escrow accounts?
Brokers
