RE Exam Prep Practice of Real Estate
Complaints can be filed with the Department of Housing and Urban Development within a period of: 180 days 90 days 1 year 5 years
1 year
Which of the following laws protect a pregnant woman? 1988 fair housing amendment 1866 Civil Rights Act Housing and community development The Federal housing administration
1988 fair housing amendment
What portion of the units must be occupied by someone who is 55 years old or older to qualify the senior citizens community? 50% 80% 90% 75%
80%
Which of the following situations is considered to violate the law? Showing a minority buyer a home in a predominantly minority neighborhood Property owner rejects a full price offer from a minority person because the offer is based on a land contract and not all cash A property manager refusing to rent because the applicant is a recovering drug addict A local association of real estate professionals terminating a minority broker's membership because of unethical behavior
A property manager refusing to rent because the applicant is a recovering drug addict
Requiring a broker to accommodate a blind person either by altering his website to meet software requirements used by the blind, or otherwise explaining all purchasing available to a blind buyer, is a requirement under the ADA RESPA Community development act ECOA
ADA
A 50-unit apartment building has been recently placed in service. Which part of the building must be accessible to disabled occupants? All levels as long as there are elevators Ground level only Neither level as long is the owner applies for a variance Ground level only regardless of elevators
All levels as long as there are elevators
A senior housing community may reject an application from a 60-year-old if: All units were occupied by someone who is 62 years old or older All units were occupied by someone who is 55 years old or older All units were occupied by a family with at least one-person age 62 and older All units are occupied by families ages 65 and older
All units were occupied by someone who is 62 years old or older
A law that prohibits discrimination based on disability in employment, in public accommodations and telecommunications, is known as: 1866 Civil Rights Act 1968 fair housing act Americans with Disabilities Act (ADA) 1974 Housing and community development act
Americans with Disabilities Act (ADA)
An agent is conducting an email campaign to notify potential investors of new properties that recently came on the market. Which of the following must be included in the emails? Addresses and prices of the new properties A notice informing potential investors to conduct a market analysis before buying An Opt-out provision A list of all the investors that are receiving the solicitation
An Opt-out provision
entioned under any of the federal or state laws. Question #9 All the following individuals are protected under the fair housing act except: A recovering drug addict An individual seeking treatment for alcoholism An AIDS victim who is accompanied by a caretaker An individual who has a criminal history
An individual who has a criminal history
A seller's agent is responsible to tell his client that Buyers viewing the property on the next appointment are a mixed couple The person scheduled to view the house suffers AIDS Any knowledge of a latent defect must be disclosed The seller who dislikes animals must allow a potential buyer who is accompanied by a service animal to view the property
Any knowledge of a latent defect must be disclosed
A financial institution that refuses to make a loan available to a person because of the following is illegally discriminating: Credit Reports Applicants are not married Person has no down payment Person is unemployed
Applicants are not married
A property manager can legally refuse to rent to a 20-year-old single individual because of age, if The management follows the same policy and treat all tenants equally The applicant wishes to occupy the section assigned for adults over the age of 35 At least 80% of the complex is occupied by residents 55-year-old or older The applicant has a child
At least 80% of the complex is occupied by residents 55-year-old or older
Which of the following does the Elliot Larson act not apply to? Tenements Condominiums Trailer parks Chattel
Chattel
When investigating a complaint under the Federal Fair Housing Act, the burden of proof is on the: Court Complainant Respondent Secretary of HUD
Complainant
Equal Housing Opportunity Notice is Installed in all Listing and Purchase Contracts Displayed in all advertising Displayed at the real estate office Installed in Leases only
Displayed at the real estate office
The importance of Jones v. Mayer Supreme court decision was to: Require lenders to include the credit applicant's income from public assistance Granted all citizens, without regard to race or color, the same right to purchase and lease property Prohibited discrimination with regard to sexual orientation Required lenders to use the APR in advertising
Granted all citizens, without regard to race or color, the same right to purchase and lease property
John, a private owner who is looking to share his 3-bedroom home with a roommate, which of the following is permitted under the Fair Housing exemptions? He may advertise with preference to the size of the family He may advertise with preference to race He may select a tenant with preference to nationality He may employ a broker to verify race, gender, and religion
He may select a tenant with preference to nationality
A seller informed the broker that he will not sell his property to a member of a certain minority group. The Broker must do the following: Try to screen potential buyers and eliminate any minorities from seeing the property. Show the house to the minorities and in case there is an offer, do not tell the seller of the fact until closing Inform the seller that refusing to deal with minorities is illegal and the Broker will not accept the listing in this case
Inform the seller that refusing to deal with minorities is illegal and the Broker will not accept the listing in this case
In which of the following ways is a broker required to use the equal housing opportunity (EHO) poster? It must be included in all sales contracts A copy must be provided to buyers and sellers at each closing It must be displayed at the broker's main office as well as all branch offices It must be provided to the seller and buyer upon signing a listing or a buyer agency contract
It must be displayed at the broker's main office as well as all branch offices
A private club operating dwellings, for other than a commercial purpose, insists on only renting to its own members. This act is: Legal but club membership cannot discriminate against protected category Legal under the federal law but prohibited under state law Illegal because all discrimination is prohibited Illegal unless membership is dedicated to a certain nationality only
Legal but club membership cannot discriminate against protected category
Susan, a college student, advertised looking to share her 2-bedroom house with a roommate, which of the following is permitted under the Fair Housing exceptions? A Christian home is looking for someone to rent a room A white home is looking for someone to rent a room Looking for a female to share the home with another female Looking for a gainfully employed person to share my home
Looking for a gainfully employed person to share my home
The following ad is legal under the fair housing act A Christian neighborhood Vacancy available in adult building Must be gainfully employed Perfect for empty nesters
Must be gainfully employed
hich of the following is a protected category under the federal fair housing act? National origin Sexual orientation Age Politics
National origin
A real estate brokerage advertises to attract veterans. Do these ads violate the fair housing laws? Yes, it discriminates against non-veterans. No, brokers can isolate any group and advertise to them No, veterans from various protected groups can qualify as long as they show good credit and income Yes because the ads are directed to a certain protected group excluding others
No, veterans from various protected groups can qualify as long as they show good credit and income
XYZ private club refused to sell one of its housing units that they operated non-commercially to a disabled person because the buyer was not a club member. Is the club in violation of the Fair Housing Act? Yes, disability is listed as one of the protected categories under the fair housing act Yes, a private club is not exempt under the fair housing act No, especially if the unit was not built to accommodate persons with disabilities No, a private club that operates dwellings not for a commercial purpose can restrict occupancy to its own members
No, a private club that operates dwellings not for a commercial purpose can restrict occupancy to its own members
After noticing a new group home in a neighborhood, a licensee suggested to other owners to sell their properties before losing value due to the existence of five mentally disabled individuals in that home. This act by the licensee is called: Panic peddling Steering Redlining Retaliation
Panic peddling
How did the 1988 fair housing amendment change the Act? Prohibited discrimination against age and marital status Prohibited discrimination against familial status and disability Prohibited discrimination against individuals receiving public assistance Prohibited discrimination against sexual orientation
Prohibited discrimination against familial status and disability
A discriminatory lending practice in which lenders refuse to advance loans in certain areas is known as: Redlining Blockbusting Steering Panic Peddling
Redlining
A lender refuses to make loans on homes built before 1940 that are smaller than 900 ft.² and has less than three bedrooms. Based on these requirements, there are not too many homes that qualify on the west side of town. This practice by the lender can be classified as: Equal opportunity lending across the board Redlining Steering Due diligence
Redlining
A mortgage Company makes it a practice not to lend money to potential homebuyers if they wish to buy in predominantly Hispanic neighborhoods. This practice is known as: Blockbusting Panic Peddling Redlining Risk management
Redlining
Which of the following is permissible under the law? Refusing to rent a unit because the applicant is an AIDS victim Refusing to rent to a mentally disabled person who is accompanied by a guardian Refusing to rent to a person because he owns a Pit Bull A white landlord refusing to rent an apartment to a white man because he is married to a black woman
Refusing to rent to a person because he owns a Pit Bull
Which of the following acts are permitted, under the Federal Fair Housing Act? Advertising property only to certain groups. Altering the terms of a loan because the applicant is a member of a minority group. Refusing to sell a property to a person with bad credit history. Telling a minority individual that an apartment has been rented, when, in fact, it has not
Refusing to sell a property to a person with bad credit history.
The following is an acceptable practice for a real estate licensee: Showing persons of a minority group houses in neighborhoods that happen to be occupied mostly by minorities according to the licensee's statistics Screening neighborhoods as to the existence of group homes for the mentally or physically disabled in order to be as helpful as possible when questioned by potential buyers Limiting the number of apartment occupants to no more than 50% combination of families with children, disabled persons, and unmarried couples Refusing to show property to a buyer who is a member of a minority group because the licensee knows that the buyer cannot afford the price
Refusing to show property to a buyer who is a member of a minority group because the licensee knows that the buyer cannot afford the price
Which of the following is permissible under the fair housing laws? Isolating families with children in separate rental units away from those who have no children Charging a higher rent deposit (not exceeding the legal amount) to families with children in anticipation of more wear-and-tear Running a criminal background check on tenants-applicants Assigning individuals with wheelchairs to ground-level units only despite availability of elevators
Running a criminal background check on tenants-applicants
The ADA addresses all the following accommodations except for: Removal of architectural barriers Parking Entrance doors Special foods in restaurants
Special foods in restaurants
A discriminatory housing practice which involves directing minority person only to minority neighborhoods is called: Panic Peddling Blockbusting Steering Obstruction
Steering
The act of directing homebuyers to only certain areas to maintain or change the character of a neighborhood is: Blockbusting Redlining Steering Permitted by law
Steering
Seller is reviewing an offer on his property and questions the licensee about the race of the buyer, the licensee must Tell him the race of the buyer as long as the seller promises to sell the house anyway Tell him that he cannot discuss the buyer's race as a part of negotiating the transaction Tell him the race of the buyer because all that matters is the price offered Ask the buyer if it is okay to disclose his race to the seller
Tell him that he cannot discuss the buyer's race as a part of negotiating the transaction
An owner of a duplex does not want to rent the upstairs unit to a family with children. He informs the broker of his wishes and assures him that it would be legal to screen applicants under an exemption in the law. How should the broker handle this transaction? Tell the owner that s/he cannot do it Based on the exemption in the law, the broker can restrict the occupancy to families with no children Although the broker can screen families, he should not use the words "no children" in his advertising The only caveat that the broker should be aware of is that no racial discrimination is allowed
Tell the owner that s/he cannot do it
A disabled tenant received permission to make accommodations to his unit. Upon vacating, which of the following will probably require restoration? Tenant installed an exterior ramp leading to the front porch Tenant widened the front door to meet the code requirement for a wheelchair Tenant lowered a countertop for easier access from a wheelchair Tenant installed an additional bathtub in the living room to accommodate his limited movement
Tenant installed an additional bathtub in the living room to accommodate his limited movement
Which of the following laws prohibited racial discrimination without exceptions? The housing and community development act ECOA The 1866 Civil Rights Act The 1988 fair housing amendment act
The 1866 Civil Rights Act
A property manager can deny the rental of a dwelling to all the following applicants except: The applicant has a pet The applicant is a social drinker The applicant has a seeing eye dog The applicant was previously evicted for causing disturbance
The applicant has a seeing eye dog
All the following are required under the "do not call list" except: The caller may not block his caller ID The caller does not use pre-recorded messages The caller does not repeat the call in the same day The caller must refrain from calling again, when asked by property owner
The caller does not repeat the call in the same day
Which of the following laws prohibits racial discrimination without exceptions? The 1977 Elliott act The 1988 fair housing amendment The civil rights act of 1866 The housing and community development act of 1974
The civil rights act of 1866
A family with children has been denied housing in an apartment complex, which of the following may be a legitimate reason to deny them housing? The family too many children The parents are of a mixed race The complex is a senior citizens housing project One of their children is mentally disabled
The complex is a senior citizens housing project
John applied for credit with a lender and received a rejection letter 45 days after the date of the application. The letter did not specifically outline the reason for the rejection. Has the lender violated any laws and if so, which law was violated? As long as the rejection had nothing to do with John being a member of a protected category, there is no violation of any laws The ECOA was violated because if the lender did not reject the applicant within 30 days, the loan is considered approved, and the borrower cannot be rejected The lender violated the ECOA The lender violated regulation Z
The lender violated the ECOA
A tenant approaches the property manager requesting permission to have a ramp added to his rented unit because his daughter was involved in a car accident, and she will be on a scooter for at least one year. What is the manager's obligation? The property owner must pay for the ramp and other necessary accommodations If the manager has a comparable unit that has the necessary accommodations, the law allows the request to be declined as long as the tenant is offered the other unit The manager must give permission if the tenant is willing to pay the cost The manager is under no obligation to accept, but must allow the tenant to break the lease without a penalty
The manager must give permission if the tenant is willing to pay the cost
A lender advertises to attract seniors interested in supplementing their income with a reverse mortgage, what legal issues apply? The ad violates the ECOA The ad violates the "age" category under Elliott Larson There are no legal issue; any person from any protected class can qualify The mortgage uses the senior's residence as collateral in violation of the Housing and Community Development act
There are no legal issue; any person from any protected class can qualify
A French-Canadian owner contacted Pauline, a French-speaking agent, to sell a lake cottage located in a senior housing community. The properties situated on that lake were predominantly occupied by seasonal owners from similar backgrounds who mainly occupied the cottages in the summer months. Pauline listed the property, advertised it in the only French-language newspaper circulating in the area, published it on the MLS and asked the HOA to reference the listing in its publication. Pauline received a referral from one of the residents who told her that his brother was interested in buying the cottage and she sold the property. Do you see any fair housing issues with Pauline's practice? Pauline should not have advertised the property in the French-speaking publication because that advertising only attracted French-speaking buyers If the community is predominantly French-speaking, there should not be an issue with selling to a French-speaking family to eliminate the language barrier with the neighbors and the Association There is no violation in advertising in a French-speaking publication if the agent advertises the listing using other publications that reach everyone in the community Being located in a seniors' community, the property is exempt from the fair housing act and the seller can show preference to certain nationalities
There is no violation in advertising in a French-speaking publication if the agent advertises the listing using other publications that reach everyone in the community
White persons are protected by the Federal Fair Housing Act and have a right to bring suit in all but one of the following cases They are threatened with violence for having sold their home to a minority family Illegal discrimination by HOA members They are evicted by a landlord for having minority guests in their home They are denied housing because of their political beliefs
They are denied housing because of their political beliefs
Jenny had a closing with the Johnson family whose telephone number is placed on the "do not call list". Is Jenny allowed to call the family anytime in the future? Yes, and within 18 months from closing Yes, and within 90 days from closing Yes, and within 24 months from closing Not at all
Yes, and within 18 months from closing
A landlord who does not allow animals in his apartment building is approached by family who has a dog and is told that the animal is necessary for their son's emotional well-being. Must the landlord allow the dog? Yes, but he can ask the family to describe their son's medical condition that justifies having a dog Yes, but he can ask to see evidence that the dog is a service animal No, as long as the landlord treats all tenants equally in disallowing animals No, but the landlord must refer the family to another complex that allows animals
Yes, but he can ask to see evidence that the dog is a service animal
Jenny is a college student who is looking for a female roommate to share a small house that she is renting. She placed an ad in the school publication stating the following: Female student is looking for a female roommate to share rent and expenses in a small cozy home. Is Jenny in violation of the fair housing act? No, the exemption in the act allows a private individual to discriminate as long as she does not discriminate because of race and not hire a licensee to rent the dwelling No, as long as the dwelling does not exceed four units Yes, the exemption applies if no illegal advertising takes place Yes, the exemption only works if a licensee handles the rental transaction
Yes, the exemption applies if no illegal advertising takes place