Practice of Real Estate
Which of the following is the best example of a tie-in arrangement?
A business requires its clients to also purchase services from another business.
Blockbusting
A process by which real estate agents convince white property owners to sell their houses at low prices because of fear that persons of color will soon move into the neighborhood
Which of these is an example of illegal market allocation?
Based on licensee expertise, Uptown Homes agrees with Country Cottage Realty to focus exclusively on suburban, rather than rural, homes.
Which of the following statements about independent contractors and taxes is true?
Brokers don't withhold income or Social Security taxes for independent contractors.
Which legislative act prohibits certain types of electronic communication?
CAN-SPAM
Which of the following statements about escrow accounts is correct?
Escrow accounts are managed by escrow agents, and are used to hold funds belonging to others, such as earnest money deposits.
Which of the following is considered unauthorized practice of law?
Interpreting the legal consequences of a client's actions
Group Boycotting
Occurs when two or more businesses conspire against other businesses or agree to withhold their patronage to reduce competition.
Which of the following would make the "Choose Your Neighbor" flyer an allowable strategy for finding prospective buyers?
As part of a comprehensive marketing strategy that doesn't limit or restrict potential buyers
While working with a buyer client, Jeffrey filled in the blanks on the purchase agreement, drafted an early occupancy addendum, and assured his buyer that she was "fully protected" and would get her earnest money back if the sale didn't close. He encouraged her to hire an attorney to review the contract and addendum, and invoiced her for a nominal $15 fee to prepare transaction documents. Which of these tasks would NOT be considered unauthorized practice of law?
filling in the contract blanks
What's the penalty for violating federal do not call rules?
fine of more than $40,000 for each violation
Johnstone's Realty is a new discount, menu-based brokerage firm. Its approach usually results in a lower listing commission rate than other firms offer. Johnstone's also offers a lower cooperating brokerage split than most other firms. Business is booming for Johnstone's, and the remaining firms in town are concerned. These brokers agree to not show Johnstone's listings to their buyer clients. What is this an example of?
group boycotting
Prior to the _______, there was no legal protection for women who endured sexual harassment from landlords and sellers when they attempted to obtain housing.
housing and community development act of 1974
market allocation
occurs when competing businesses divide a market amongst themselves
Jean is a licensee for At Home Realty. She chooses her own schedule, sets her own sales goals, and is compensated based on commission. She must complete three training courses each quarter and the required number of CE hours to maintain her license. She must belong to the local REALTORS® association. The firm doesn't pay for employment taxes for Jean. She receives no insurance or other benefits. Which of these factors might cause the IRS to classify Jean as an employee instead of an IC?
she must take training classes through the firm
The ______ is the federal act that deals with telephone solicitation.
telephone consumer protection act
Which type of antitrust violation occurs when the providing of one service is made dependent on the customer or client obtaining another recommended service?
tie-in arrangement
It's January, and the pool at Roger's listing has been prepped for winter for several weeks. The homeowner assures Roger that it's in good working order. Roger has no reason to disbelieve the homeowner, so he tells prospective buyers that the pool is fine. The property sells, spring comes, and the new owners call to complain that the pump doesn't work, and the pool drain appears to be clogged. What did Roger commit?
unintentional misrepresentation
Buyer Susie's a little nervous about the $20,000 earnest money check she just deposited with the title company. When should she expect to see this money applied toward her purchase of the property?
when conditions are met at closing
steering
"Steering" is the practice of influencing a buyer's choice of communities based upon one of the protected characteristics under the Fair Housing Act, which are race, color, religion, gender, disability, familial status, or national origin.
Which statement correctly identifies a federal fair housing law and what it addresses?
Title VIII of the Civil Rights Act of 1968 prohibits housing discrimination based on race, color, national origin, and religion.
Millie is a buyer who has given her agent an earnest money check for $10,000 with an offer to purchase. When will the check be deposited?
after the seller accepts the purchase offer
Which agency enforces Title II under the Americans with Disabilities Act of 1990, when it relates to state and local public housing, housing assistance, and housing referrals?
department of housing and urban development
