Q&A Hero

Q: A tester is an individual or organization that responds to advertising and visits real estate offices to test for compliance with fair housing laws.

Q: The Community Reinvestment Act provides for equal credit to borrowers.

Q: The Americans with Disabilities Act (ADA) is a federal law giving disabled individuals the right of access to commercial facilities open to the public.

Q: A country club has several guest bedrooms which are made available to members for a nominal charge but are not available to the general public. This is a violation of the federal fair housing laws.

Q: A licensed real estate agent is offered a listing by an owner who will not sell to any person of a certain national origin. The agent should report the owner to the real estate department.

Q: A person seeking enforcement of the Civil Rights Act of 1866 may do so by filing an action in federal court.

Q: A victim of discrimination in housing may seek enforcement of the Fair Housing Law by filing a complaint with the state real estate department.

Q: A church that operates housing for the elderly may not restrict occupancy to members of the church even if membership in the church is open to all persons.

Q: The Fair Housing Law of 1968 applies to single family and multi-family housing.

Q: Inducement of panic selling in a neighborhood for financial gain is known as blockbusting.

Q: The practice of directing home seekers to particular neighborhoods based on race, color, religion, sex, or national origin a. is known as steering. b. is prohibited by the Civil Rights Act of 1866. c. constitutes blockbusting. d. all of the above.

Q: An amendment to the Fair Housing Law of 1968, signed by the president in 1968, prohibits a. discrimination on the basis of physical handicap. b. the offering of different loan terms by commercial lenders based on race or religion of the loan applicant. c. refusal to sell, rent, or negotiate with any person. d. steering and blockbusting.

Q: All of the following are prohibited by the Fair Housing Law of 1968, as amended, EXCEPT a. discrimination in advertising. b. denial of availability of housing on the basis of religion. c. discrimination in terms or conditions for sale or rent. d. discrimination on the basis of age.

Q: The Civil Rights Act of 1866 prohibits a. racial discrimination. b. steering. c. block busting. d. discrimination for any reason.

Q: State and local laws that restrict or prohibit discrimination in the availability of rental housing may a. be more restrictive than federal statutes. b. prohibit additional forms of discrimination. c. both a and b. d. neither a nor b.

Q: Under federal law, the owner of one single-family dwelling in which the owner has resided for 10 years, who does not employ an agent and does not use discriminatory advertising, may discriminate in the sale or rental of the property on any of the following EXCEPT a. religion. b. race. c. color. d. national origin.

Q: A real estate broker was offered a rental listing by a homeowner who stated that he would not rent to a person of certain religious beliefs. The broker should a. refuse to accept the listing on these terms. b. accept the listing and leave it up to the owner to refuse any offers received from persons of that religion. c. accept the listing and steer persons of that religion to other properties. d. file a complaint of discrimination against the owner.

Q: Discrimination in the availability of housing on the basis of race is prohibited by the a. Civil Rights Act of 1866. b. Fair Housing Law of 1968. c. both a and b. d. neither a nor b.

Q: The CRA statement should contain all of the following EXCEPT a. a map of the lender's definition of its community. b. a list of credit services it offers. c. a copy of the public notice in its lobby. d. the names of all lending institutions in the area.

Q: A law requiring lenders to have a plan to make lendable funds available for all low-income neighborhoods it serves as well as more affluent neighborhoods is the a. Community Reinvestment Act. b. Fair Housing Act of 1968. c. Equal Credit Law of 1978 d. Presidential Order of 1970.

Q: Failure to comply with the Equal Credit Opportunity Act can result in a. civil liability and subsequent penalties. b. 5% of the creditors net worth in class actions. c. criminal penalties only. d. a maximum penalty of $5,000 for each individual case.

Q: The Equal Credit Opportunity Act, as amended, allows for a. no exceptions wherein a real estate loan is involved. b. no exceptions on any loans. c. minor exceptions wherein a real estate loan is involved. d. coverage of minors in regard to loans.

Q: All of the following are true of the ADA, enacted on July 26, 1992, EXCEPT a. it provides access requirements and prohibits discrimination against disabled people. b. it affects the real estate brokerage industry in that the licensees need to determine compliance. c. it requires modifications to procedures so that disabled individuals are not excluded from regular programs. d. it requires alterations to the property, no matter what that cost will be.

Q: The "Americans With Disabilities Act" deals primarily with a. single family residences. b. multi family residences. c. commercial properties. d. all real estate.

Q: Among several methods of recourse, a person who is discriminated against must file a written complaint to a. HUD. b. the state real estate commission. c. the local association of REALTORS . d. a civil court.

Q: A housing discrimination victim may seek recourse by all EXCEPT a. formal complaint to the Department of Housing and Urban Development. b. suit in a state court of competent jurisdiction. c. complaint with the state real estate commission. d. complaint filed with the U.S. Attorney General.

Q: A person would be guilty of discriminatory block busting in which of the following cases? a. Circulating information about socio-economic changes in a neighborhood b. Profiting from socio-economic changes in an old neighborhood c. Building a single family residence in an area which was predominantly condominiums d. Inducing owners to sell by telling them an untruth about falling property values

Q: The illegal practice of inducing panic selling in a neighborhood for financial gain is called a. steering. b. block busting. c. testing. d. discrimination.

Q: Showing a prospective buyer homes only in particular neighborhoods based on race, color, religion, sex, national origin, non-handicapped or adults only is known as a. block busing. b. redlining. c. steering. d. subrogation.

Q: An agent, in the course of listing a property, was told by the seller that he would not sell to persons of a certain race. The agent should a. try to change the seller's mind. b. refuse to take the listing with that exception. c. take the listing and ignore the wishes of the seller. d. inform the seller he is in violation of fair housing laws.

Q: Which of the following is exempt from 1968 Fair Housing Law? a. Single family residences using a real estate broker to sell b. Multifamily dwellings of 5 or more units c. Property owned by a private club for its members' non-commercial use d. Single family residences not owned by private individuals

Q: A property can be exempt from allowing children if a. it is generally occupied by persons 62 years or older. b. there is a swimming pool. c. there are no schools nearby. d. there is no play area.

Q: Under the Fair Housing Law of 1968, apartment managers may discriminate against which of the following categories of people? a. Pet owners b. Females c. American Indians d. White Anglo-Saxon Protestants

Q: According to the 1968 Fair Housing Law, the Equal Housing Opportunity logo should appear in all of the following EXCEPT a. real estate brokerages. b. real estate classified newspaper advertising. c. model home sale sites. d. mortgage lenders' offices.

Q: Comparing the 1968 Fair Housing Law and the Civil Rights Act of 1866, which is true? a. The Act of 1968 prohibits discrimination based on sex, religion, national origin and marital status. b. The Act of 1866 has no exceptions but it covers only racial and religious discrimination. c. The Act of 1968, called the Fair Housing Law, exempts properties offered for commercial use. d. Both acts prohibit steering and block busting.

Q: A real estate broker had a white couple interested in one of his listings but he inflated the price in talking to them and they did not make an offer. Later, the broker solicited an offer from a black couple and induced them to offer less than the listed price. He submitted this offer for acceptance. Was the broker liable under the federal fair housing law? a. Yes, and the white couple could seek judicial recourse b. Only if he was a black man himself c. No, because the white couple never actually made an offer d. No, because a seller has the right to refuse to sell to anyone

Q: If O"Malley deeds property to O"Halloran on the condition that no Englishmen live there, what is the status of the deed? a. The condition is grandfathered in. b. The deed is unenforceable. c. The deed is valid but the condition is unenforceable. d. The deed is voidable.

Q: A white woman owned a duplex and lived in half and rented out the other half. She put a "For Rent" sign in the front yard. The first applicant was a black man whom she turned down stating that she didn"t rent to men. He later learned that she had rented the unit to a white male. Under the circumstances, the first applicant has a. a discrimination case based on the 1968 Fair Housing laws. b. a discrimination case based on the Civil Rights Act of 1866. c. no recourse since the building is owner occupied. d. access to HUD legal assistance while he files his case.

Q: A woman owned a duplex and lived in half and rented out the other half. She put a "For Rent" sign in the front yard. The first applicant was a black man whom she turned down stating that she didn"t rent to men. Under the Fair Housing laws, she a. is within her rights since she didn"t use any discriminatory advertising. b. is in violation of the Fair Housing laws since she may not discriminate even if only verbally. c. is guilty of steering. d. can expect a warning from HUD because she turned down a black.

Q: Jones v. Mayer a. affirmed the 1968 Fair Housing Law. b. affirmed the Civil Rights Act of 1866. c. allowed discrimination based on race. d. was the first major fair housing legislation.

Q: The duty of ____________________ care implies competence and expertise on the part of the broker.

Q: ____________________ agency is the representation of two or more principals in a transaction by the same agent.

Q: A person who brings two or more parties together but does not represent either party is known as a ____________________.

Q: Making statements a reasonable person would recognize as non-factual or extravagant is known as ____________________.

Q: Agents who fail to investigate the cause of an apparent underlying defect in a property they are selling may be found liable for ____________________ damages.

Q: A broker who intentionally misleads a prospect by making an incorrect statement known to be not true is subject to license ____________________.

Q: A broker who intentionally misleads a prospect by making an incorrect statement known to be not true is guilty of ____________________.

Q: The relationship of a sales associate to the employing broker is that of a ____________________ agent.

Q: A broker who misrepresents a property to a prospect may be subject to the loss of rights to a ____________________.

Q: The placing of funds belonging to others in a broker's personal bank account constitutes ____________________.

Q: Brokers can indemnify themselves against legal actions by those with whom they deal by purchasing errors and omission insurance.

Q: Any earnest money deposits paid by the purchaser must be placed in a proper trust account.

Q: Fiduciary responsibilities of an agent to the principal include faithful performance, loyalty, and provision of legal advice.

Q: Brokers have fiduciary responsibilities to third parties with whom they deal.

Q: A broker was part owner of an apartment building along with two co-owners. When they decided to sell the broker was named as the listing agent. The broker thus held an agency by ratification.

Q: An agency relationship may be created by ratification or estoppel.

Q: Errors and omission insurance may cover intentional acts to deceive.

Q: Price fixing and monopolies are prohibited by federal fair housing laws.

Q: A real estate licensee may not work as the agent for both parties in a transaction unless the licensee has the written consent of both the buyer and the seller to this dual agency.

Q: The broker writes an offer on one of his own listings. He should inform the buyer that he is an agent of the seller as well as the buyer prior to closing.

Q: The main problem that can arise with a dual agency is the agent may experience a conflict of interest.

Q: A listing agent is bound by his fiduciary relationship to be loyal to the seller. With regards to working with a buyer, the listing salesperson must disclose hidden defects to the buyer.

Q: It might constitute commingling if a buyer's earnest money check is made out to the sales agent.

Q: A buyer makes an initial deposit of $10,000 to buyer a $400,000 house. The buyer withdraws the offer before the seller accepts it. The broker should dispose of the buyer's earnest money by splitting it with the seller according to the terms of their commission agreement.

Q: Shortly after a salesperson listed a property, there was an immediate offer through another broker. Before the salesperson could present this offer to the seller, he himself had a customer make an offer on the same property. The salesperson can properly present both offers.

Q: An investor hires a broker to buy a particular property for him, naming the maximum he will pay. The broker, however, purchases it for himself at a lower price and then sells it to his client at a higher price without revealing his involvement. This is an example ofillegal secret profits.

Q: Kitty, a broker, has an option to purchase a residence which the owner has also employed Kitty to sell for a commission. Before Kitty can exercise the option, she must give notice to the seller that she will collect two commissions.

Q: Two sellers lead a buyer to believe that broker Charlotte is their agent without notifying Charlotte of the fact. This is an example of express agency.

Q: A salesperson who worked as an agent in a broker's office decided to sell his own home. He placed a classified ad in the paper for his open house, listing only his own home number. The salesperson's actions wereagainst state real estate license law.

Q: The relationship, which is created when one person authorizes another to act on his behalf, is called ratification.

Q: When an agent's authority arises from custom in the industry, it is identified as a. implied authority. b. ostensible authority. c. customary authority. d. conventional authority.

Q: The relationship of a real estate broker to the owner of property listed for sale with the broker is a a. general agency. b. universal agency. c. limited agency. d. special agency.

Q: An agent's authority may be granted by a. written agreement. b. custom in the industry. c. both a and b. d. neither a nor b.

Q: Agents who are authorized to bind their employer in a trade or business are a. special agents. b. general agents. c. exclusive agents. d. principal agents.

Q: When an agent is given the right to transact all types of matters on behalf of the principal, the agent serves as a a. notary public. b. third party. c. universal agent. d. special agent.

Q: In most states, the maximum amount a broker may charge a seller is a. 6%. b. 7%. c. 10%. d. Any amount agreed to between the seller and the broker.

Q: A broker listed a property and in one week found a buyer for the property herself. Under these circumstances, the broker a. may only represent the seller. b. may have a dual agency. c. may not represent the buyer. d. is not required to disclose a dual agency.

Q: A couple makes an appointment with a broker to look at homes. He has not met them previously. They decide to make an offer on one of his listings and they all return to the real estate office to write up the offer. The broker should a. keep quiet and hope it is a good offer. b. tell the buyer about the dual agency after writing the offer. c. tell the buyer about the dual agency before writing the offer. d. write the offer.

Q: Dual agency results when a. abroker represents a buyer and writes an offer on his own listing. b. a broker presents an offer on any listing. c. an outside agent presents an offer on a broker" listing. d. a buyer works with more than one broker.

Q: A dual agency a. is unlawful. b. is legal but unethical. c. must be disclosed to all parties. d. requires a permit from the real estate commissioner.