practice of real estate
t/f fair housing laws does not prohibit discrimination based on one's religion, such as "Islam", "Christianity", and "Buddhism".
false
Seller A agrees to sell to Buyers B on the condition that they presently have no children and do not plan to have any in the future. This condition violates the ________ protection under the Fair Housing Act and is unenforceable.
familial status
New multi-family dwellings must be designed and built to meet certain adaptability and accessibility requirements for persons with a ____
handicap
Fair Housing Amendments Act of 1988 amended the Fair Housing Act in 1988 to ...
increase penalties for violators, provide an administrative enforcement mechanism, and expand protections to persons that are handicapped or have familial status.
Salespersons often work for brokers as _______(employees or independent contractors?) within the real estate firm.
independent contractors
if an agent had done the research, knew a doggie daycare would be prohibited, but told the buyer it would be allowed in order to make the sale, this representation has most likely crossed the line to ________ (fraud, puffing, negligent misrepresentation, etc.)
intentional misrepresentation (fraud)
Act of returning a portion of a payment pursuant to a secret or coercive agreement. is called...
kickbacks
Under most state laws, salespersons ____(may or may not?) accept payment for services directly from clients.
may NOT
If an agent says, "This well water is the purest water in the county" and the well water turns out to be unfit for drinking, the agent's statement may appear to the buyer (and to a court) as a _______
misrepresentation ( not puffing bc stated as a fact not opinion)
For example, an agent knows that a buyer is looking for a property where he can open a "doggie daycare." The agent finds a listing in a neighborhood where there is currently a home with a licensed child daycare, assumes a doggie daycare would also be permitted, and informs the buyer that the zoning will work for that purpose. The buyer purchases the property. Later, the County refuses the buyer a doggie daycare permit. This might be considered __________ (fraud, puffing, negligent misrepresentation, etc.) because had the agent researched the issue, he would have learned that there is a special exclusion for doggie daycares.
negligent misrepresentation
does a dwelling include commercial property?
no is not a residence for family
You own an apartment house in Peaceful Retreat, Virginia. The dwelling contains six 1 bath/2 bedroom units. You do not like children and do not want to rent to families with children. However, you do not qualify for either of the all-elderly housing exemptions, so you may not discriminate against families.. Peaceful Retreat has an ordinance that limits apartment occupancy to four people per bathroom, is it a violation to refuse to rent to a family of five?
no because Peaceful Retreat has an ordinance that limits apartment occupancy to four people per bathroom, it is not a violation to refuse to rent to a family of five.
Religious organizations (churches) may restrict dwellings to members of the same religion. However, the religious organization must be __________ and cannot discriminate on ...
non-profit race, color, gender, familial status, handicap, or nationality.
Private membership clubs that are not open to the public may restrict lodging in their own facilities as members only, provided they are .
non-profit clubs.
conversion or commingling or nothing? depositing earnest money into the trust account
nothing! you have to deposit earnest money (EMDs) into an escrow or trust account!
People or firms that collusively establish uniform prices for products or services, regardless of which company or person actually provides the product or service is called..
price fixing
Listing agreements obligate the ______ to compensate the _____ if the agent is the procuring cause of the sale.
principal (seller) agent (broker)
Statements that may be classified as ____ include: "This is the most beautiful house in the city," and "You will never find a buy like this again."
puffing
Illegal act under the Fair Housing Act where a mortgage loan or insurance policy is unfairly denied based on where the property is located rather than the economic qualifications of the person seeking the loan or policy. is called....
redlining
ADA guarantees equal opportunity for individuals with
(Americans with Disabilities Act) disabilities in employment, public accommodations, transportation, State and local government services, and telecommunications.
The Fair Housing Act applies to the s_____________, which the Department of Housing and Urban Development (HUD) defines as a dwelling
sale or rental of residential housing
If a real estate agent has a customer who makes $40,000 per year, it is not a violation if the agent decides not to show the customer a $300,000 house. However, if she decides not to show a customer a particular house because the customer is a minority, then the agent is guilty of _______.
steering
Illegal act under the Fair Housing Act where an agent discourages protected classes of people from purchasing property in certain neighborhoods or directs them to certain properties or neighborhoods is called.........
steering (often motivated by the ethnic or cultural composition of the neighborhood in question).
Private individual owners of single-family housing are exempt from the non-racial protections of the Fair Housing Act, provided they: 1) 2) 3) 4)
1) do not own more than three single-family houses at any one time; 2) do not sell more than one single family house in any two year period; 3) do not employ a real estate agent; 4) do not use discriminatory advertising.
The Civil Rights Act of 1866 was incorporated into the ______ Amendment of the U.S. Constitution.
14th
in the Federal Fair Housing Act of 1968, Note that sex was not included as a protected class until _______.
1974
Owners who occupy their homes, but sell or rent rooms or units, are exempt from the non-racial aspects of the Fair Housing Act provided their home contains ______ (#?) units.
4 or fewer
Housing for the elderly is exempt from the familial status protection if it falls into either one of the following two categories: (i) Housing that requires all of its residents (excluding employees) to be _____ years of age or older is exempt from the familial status protection under the Fair Housing Act; and (ii) Housing that requires at least one person per unit to be _____ years of age or older, and ____% of all units are so occupied
62 55 80%
t/f It is reasonable to require removal of grab bars. It is unreasonable to require that a widened doorway be restored to its original width.
true
t/f Many states specifically require the broker to provide training for agents and/or to develop and provide specific policy and procedure manuals for agents to follow.
true
t/f Real estate brokers must display HUD equal opportunity posters in all places of business, model home sites, and other related locations. Posters must contain the Equal Opportunity slogan, statement, and logo.
true
t/f Since 1995, federal rules have prohibited calls to any consumer who has asked not to be called.
true
t/f fair housing laws prohibit discrimination based on one's familial status. Essentially, this prohibits discrimination against families with children. For the real estate professional, this means that properties or neighborhoods cannot be marketed or sold as "child free" communities unless an exemption applies
true
t/f fair housing laws prohibit discrimination based on one's race, such as "Caucasian", "African American", and "Latino"
true
t/f Exclusive right-to-sell listing agreements usually contain a clause that entitles the broker to a commission AFTER the listing expires or is otherwise terminated if the buyer (who was introduced to the property during the listing) purchases the property after the listing expiration/termination
true! It "protects" the broker's commission in the event that the buyer attempts to wait for the listing to expire and then deal directly with the seller.
Familial status is only applicable if at least one member is ....
under 18, pregnant, or has applied for custody of a minor.
do dwellings include any vacant land that is offered for sale/lease in order to build or be the location of a building or structure?
yes
is it a violation of antitrust laws for multiple firms to agree upon or fix a commission rate
yes
Brad Broker has a listing agreement with Sally Seller. Brad produces a buyer that is ready, willing, and able to complete the transaction, but Sally has a change of heart and decides not to sell the property. is Brad still due a commission?
yes Brad is still due a commission because he has fully performed as specified in the listing agreement
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? A) the applicant can be denied a lease . B) the applicant's right to rent is protected by familial status . C) the landlord can deny rental because the applicant is a single mother, which is contrary to the composition of the community . D) the landlord can refuse to lease on the basis of marital status
A ( mother may be younger than 55. In this situation, since 90% of the units are occupied by someone 55 or older, the landlord can exclude the renter without violating the Fair Housing Law. Therefore, answer one is the best choice.Elderly housing is exempt from familial status protections if it falls into one of two categories: (i) all residents are 62 or older; or (ii) in at least 80% of all units, ONE of the residents is 55 or older. if shes younger than 55, this is why.)
A broker has an exclusive right-to-sell listing, but the owner finds a buyer and sells the property while the listing is still in force. The broker is entitled to: A) a full commission . B) 50% of the commission . C) reimbursement for out of pocket expenses . D) no commission, because the owner sold the house himself
A (An exclusive right-to-sell listing entitles the broker to a full commission regardless of who sells the property, even if the owner sells it himself.)
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: A) no commission so long as Wally was not the procuring cause . B) a split commission . C) one commission for the exclusive right-to-sell agreement . D) two commissions because the exchange occurred three days after the listings expired
A (Like any other agent, Wally is generally not entitled to a commission after his listing expires. However, an agent is entitled to a commission (even after a listing expires) if he was involved in the transaction between the two parties during his listing period, such that he is the procuring cause of the sale. Under the facts of this question, we do not know for sure whether Wally was a procuring cause or not, which eliminates all but one choice. The best answer is a re-restatement of the rule—Wally is not entitled if he was not the procuring cause, which is equivalent to "Wally is entitled if he was the procuring cause.")
A salesperson took a listing on a property that had a crack in the foundation due to water seepage. Although the owner told him that the water problem was fixed, it's obvious that the owner only filled in and painted over the crack. If the salesperson shows the property without advising potential buyers of issue, the salesperson would be guilty of: A) fraud . B) misrepresentation . C) puffery . D) nothing
A (the agent KNEW and intentional didn't tell the buyers on PURPOSE. This is fraud because it is an intentional concealment. The licensee is obligated to disclose known material facts about property.)
Unauthorized Practice of Law (UPL)
Almost all states have laws that prohibit the unauthorized practice of law. drafting contracts on behalf of another, including real estate-related contracts like purchase agreements
Signed into law in 1990, the _______________ gives civil rights protections to individuals with disabilities that are like those provided to individuals on the basis of race, sex, national origin, and religion.
Americans with Disabilities Act (ADA)
_____ focus on businesses who join forces (conspire) to fix prices or to boycott other businesses, thus driving competitors out of the market
Antitrust laws
Illegal act under the Fair Housing Act where a person induces the sale of property or properties by overtly creating the impression that a neighborhood is about to undergo an undesirable change. is called....
Blockbusting
refrral fees. allowed in the following or no? broker to broker salespersons settlement services
Broker to Broker: yes Most states permit brokers to pay referral fees to one another for the act of referring potential clients. b. Salespersons: no, Most states prohibit salespersons from accepting referral fees because salespersons generally must be compensated by their brokers only. c. Settlement Services: NO, RESPA prohibits anyone from paying or receiving referral fees or kickbacks that increase the cost of settlement services.
A broker would be in violation of the Federal Fair Housing Act 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 make-up of the neighborhood . C) hiring salespersons on the basis of sex, regardless of experience or qualifications . D) refusing to show a Germany couple property located in a mostly Italian neighborhood .
C (this question is about housing, not employment. Hiring people on the basis of sex is a gross violation of the law, but NOT the Fair HOUSING Law. Such practice is a violation of the Equal EMPLOYMENT Opportunity Act.)
f a person feels they were discriminated against in a real estate transaction, they would file a complaint with: Select one: A. The Federal Bureau of Investigation B. The Federal Trade Commission C. The Department of Housing and Urban Development D. The Department of Health, Education and Welfare
C (HUD)
The ______Act was passed in 2003, and the rules went into effect in 2008. It sets requirements for any e-mail that advertises a commercial product or service (such as real estate), and includes website content.
CAN-SPAM (Controlling the Assault of Non-Solicited Pornography and Marketing)
Practicing within Area of _____: They owe a fiduciary duty to represent their client diligently and competently. An agent must learn to recognize situations where a client needs the advice of another professional (structural engineer; surveyor; accountant; attorney), and must suggest that the client consult such professionals.
Competence
If a religious organization operates a hotel as a means of raising money to support the organization, which of the following statements is true? A) they are exempt from the 1968 Fair Housing Laws . B) they may limit room rentals to members of the organization . C) they are exempt from the "religion" portion of the Fair Housing Act . D) they must make rooms available to all persons
D (Religious groups CAN be exempt and exclude others, but not when they are operating a commercial establishment, such as a hotel. *********MUST be non-profit!!!!)
An agent listed a property where a murder recently occurred. If the agent shows the property without advising potential buyers of the murders, the agent would be guilty of: A) fraud . B) misrepresentation . C) puffery . D) nothing
D (The agent is not required to disclose occurrences which have no effect on the physical structure, the environment, the property, or its improvements.)
When does a broker earn commission? A) when the listing is taken . B) when the purchaser signs the title insurance policy . C) when closing is complete and title passes . D) when the offer to purchase has been signed and accepted by the seller
D (The broker EARNS a commission when the broker brings a ready, willing, and able buyer to buy on a seller's terms. The broker is PAID when the deal closes and title is transferred.)
_____ occurs when the licensee knows a statement to be untrue but states it regardless, with the intent that the questioning party will rely on that fact.
Deliberate or intentional misrepresentation
The _______________ ADMINISTERS federal fair housing laws
Department of Housing and Urban Development (HUD)
___________ include all buildings, structures, or vacant land that is occupied, designed, or intended to be occupied as a residence by one or more families
Dwellings
t/f Because escrow money is held in trust for third parties, the broker CAN use the money for other purposes and CAN mix personal or broker firm money with the trust money
FALSE he CANNOT do either
t/f The salesperson does have authority to receive compensation from, or enter into contracts with, the client
FALSE (only the BROKER may contract with the client and compensate the salesperson.)
James, a tenant at the Shady Oaks apartment complex, is arrested for threatening his neighbor while brandishing a baseball bat. Consistent with the lease, the property manager provides James with a 30 day notice to quit. James hires an attorney who informs the property manager that James' conduct was caused by his mental disability. James refuses to take medication to control his condition. TRUE OR FALSE?: Shady Oaks IS required to make accommodations for James and WILL violate the Fair Housing Act for seeking to terminate his lease through the eviction process.
FALSe Shady Oaks is NOT required to make accommodations for James and will NOT violate the Fair Housing Act for seeking to terminate his lease through the eviction process.
the _________ is when Congress amended the Fair Housing Act in 1988 to increase penalties for violators, provide an administrative enforcement mechanism, and expand protections to persons that are handicapped or have familial status.
Fair Housing Amendments Act of 1988
Collective reference to state and federal laws intended to promote equal and fair opportunities to obtain housing for certain protected classes of persons is called the....
Fair Housing Laws
Bans all preference, limitations, or discrimination based on race, color, religion, sex, or national origin in connection with the sale or rental of most residential dwellings and vacant land intended for residential construction ********Note that sex was not included as a protected class until _______.
Federal Fair Housing Act of 1968 1974
Redlining not only violates fair housing laws, but also violates __________
Federal Housing Finance Agency (FHFA) regulations.
Any person who believes he has been discriminated against (aggrieved party) may file a complaint with ____ within ______ of the alleged act, or ______ may initiate its own complaint
HUD one year HUD
the _______________ ENFORCES federal fair housing laws
HUD and the Department of Justice
Handicapped persons may make reasonably necessary modifications to individual units (pre- and post-1991 construction). For covered leased units built after ________- covered landlords must make public and common areas usable by the handicapped and install doors that allow passage of wheelchairs.
March 13, 1991,
is there anything in the Fair Housing Act that prevents states from restricting the maximum number of people permitted to occupy a dwelling?
NO, Nothing in the Fair Housing Act prevents states from REASONABLY restricting the maximum number of people permitted to occupy a dwelling
______ occurs when a licensee wrongly states a fact that he should know (or holds himself out as knowing).
Negligent or uninformed misrepresentation
_____ is a harmless exaggeration that is not likely to mislead a reasonable person.
Puffing
Phrase describing a buyer who has made an offer consistent with the terms of a listing agreement, and who has the motivation and financial ability to perform.
Ready, Willing, and Able
the following is an Example of _______: Increasing the amount required for a down payment in order to discourage a protected class of persons from purchasing property is a violation of the Fair Housing Act.
Redlining
the following is an Example of _______: It is illegal for a lender to deny a loan because the subject property is located in a deteriorating neighborhood. The decision of whether to approve the loan must only be based on the economic qualifications of the applicant and the appraised value of the property.
Redlining
_________ is by far the most common reason cited for fair housing lawsuits against agents.
Steering
The ______ Act , and the revised rules under the_____, passed by Congress in 2005, prohibit the sending of unsolicited advertisements to any fax machine
Telephone Consumer Protection(TCPA) Junk Fax Prevention Act
Federal law and subsequent Constitutional Amendment, which prohibits any form of discrimination based on race that restricts a person's right to inherit, purchase, lease, sell, hold, or convey real and personal property is the....
The Civil Rights Act of 1866
Since 2003, consumers may now also place their telephone numbers on a list called the...
The National "Do Not Call" Registry
what is the principal federal antitrust law???
The Sherman Antitrust Act (Sherman Act)
Who is usually responsible for maintaining the escrow account and keeping records?
The broker
_________________ are bank accounts which state licensing laws require brokers to maintain in order to deposit and hold certain monies of third parties (buyers, sellers, tenants, landlords) until specified terms and conditions have been satisfied
Trust accounts (escrow accounts)
in an email, The "To" and "From" fields, as well as the originating domain name and e-mail address, must be ..
accurate and identify the person who initiated the e-mail.
Whether a person is an independent contractor or employee, salespersons act as ________ (agent or subagent?) of their broker and _____ (agent or subagent?) of listing sellers.
agents to brokers subagents to sellers
It would be a violation of _______ for multiple firms to agree upon or fix a commission rate
antitrust laws
State and federal laws designed to protect consumers by preserving and maintaining competition among businesses
antitrust laws
___________ - EXAMPLE: Violations in ads would include: "One block past the synagogue," "next door to Martin Luther King High School," or a picture showing 10 young white adults, all holding cans of beer, used to advertise an apartment project (this picture communicates that families and minorities may not be welcome).
blockbusting
the following is an Example of _______: suggesting that minorities are changing the balance of a neighborhood
blockbusting
the following is an Example of _______: suggesting that persons of other nationalities are degrading the quality of the school system serving a neighborhood, or to otherwise frighten people into selling their house for a prohibited reason.
blockbusting
Two or more companies that conspire to exclude a competitor from the market place
boycott
most real estate agents are hired as "independent contractors" rather than employees, state license laws place the responsibility on the _____ to see that the agents represent clients in a competent manner.
broker
Do Not Call Laws Does not apply to ...
business-to-business calls or calls to consumers from political/charitable organizations
word for mixing money like personal/broker money with trust money?
commingle (think co= together mingle= mix the money)
conversion or commingling or nothing? depositing earnest money into the broker's business operating account
commingling (mixing the money, needs to be in a separate escrow/trust account)
conversion or commingling or nothing? depositing broker's personal funds into the trust account
commingling (mixing the money, needs to be in own account)
conversion or commingling or nothing? stealing money
conversion (you steal it for other purposes then intended)
conversion or commingling or nothing? using one client's escrow money to pay for something on behalf of another client and disbursing earnest money for a commission before the property goes to settlement.
conversion (you are using the money for other purposes)
word for using the money for other purposes
conversion`
One who works under the direct supervision of another, with limited discretion. (employees or independent contractors?
employees
Only the _______ may compensate (pay) the salesperson.
employing broker
t/f fair housing laws does not prohibit discrimination based on one's National Origin, such as "Chinese", "German", or "Brazilian".
false