101 Questions
Which federal legislation prohibits discriminatory practices in selling or leasing housing based on race?
Civil Rights Act of 1866
Under which federal legislation is any form of housing discrimination based on race, color, religion, and national origin prohibited?
Civil Rights Act of 1968 (Title VIII)
Which discriminatory practice involves steering individuals to or away from certain neighborhoods based on protected characteristics?
Blockbusting
What types of facilities are exempted from fair housing laws according to the information provided?
All of the above
Which federal legislation emphasizes that exceptions to fair housing laws must be carefully considered and justified according to specific criteria?
Civil Rights Act of 1968 (Title VIII) Exceptions
What is the main purpose of RESPA?
To promote transparency in real estate transactions
Which entity regulates RESPA?
Consumer Financial Protection Bureau (CFPB)
What is the purpose of TRID?
To promote transparency in mortgage transactions
What is included in the buyer's credits in a real estate transaction?
Earnest money, loan amount, seller's share of prorations
If the annual tax bill is $1,800 and the closing date is on April 10th, what is the seller's share of taxes using the proration formula?
$130.00
According to fair housing laws, what is the consequence if a broker fails to display the Equal Opportunity in Housing Mandate poster?
The broker may face legal action
Which federal law prohibits discrimination in loan qualification based on race, color, religion, national origin, sex, marital status, or age?
Equal Credit Opportunity Act (ECOA)
What hazardous material found in foam insulation and pressed wood products must be removed by experts to prevent contamination?
Urea formaldehyde
What must be disclosed by sellers regarding the property's drinking water source proximity?
Source of drinking water
In which housing scenario are exemptions from fair housing laws applicable?
Dwellings where at least 80% of occupants are aged 55 or older
What is the purpose of termite inspections?
To conduct annually as they are not easily detectable by non-experts
What is included in a home inspection according to the text?
Assessments of potential impairments on site
What is the responsibility of a homeowners' association according to the text?
To provide all required disclosure documents and forms
What does the National Association of Realtors® Code of Ethics cover?
Professional ethics related to practice and transactions
What is the disapproved practice of wholesaling in real estate described as in the text?
A practice where immediate profit is realized without taking possession of the property
What is the result of (($150 * 3) + ($5 * 10))?
$500 seller's share
In risk management, what does avoidance involve?
Avoiding activities with high-risk exposure
What type of insurance covers legal costs and damages from professional negligence?
Errors and omissions (E & O) insurance
What is the formula for the 365-Day Method of calculating prorated payments?
(Annual amount / 365) * Number of days
What must real estate agents do in relation to Fair Housing Law?
Comply with laws against housing discrimination
What is the primary responsibility of property managers?
Keeping the property well-maintained and safe
Which act can lead to lawsuits, damages, or loss of reputation?
Misrepresentation
Where should agents deposit trust funds according to best practices?
Designated trust account
What should property managers do to ensure compliance with regulations like the Americans with Disabilities Act?
Comply with fair housing laws
What is the purpose of property managers preparing operating budgets?
To allocate funds for capital expenditures
What is the purpose of the Management Agreement document?
To define the relationship between the owner and the manager of a property
What does the Equal Opportunity statement in the Management Agreement address?
Compliance with fair housing laws and regulations
Which party has the right to receive rent and examine books and records according to the Management Agreement?
Owner only
What is one of the rights granted to the manager in the Management Agreement?
Maintain financial records without sharing them with the owner
Which party has obligations to comply with all applicable laws and regulations as stated in the Management Agreement?
Both owner and manager
What is a liability of the manager as outlined in the Management Agreement?
Trust fund management on behalf of owner or tenants
What do leasing considerations in the Management Agreement address?
Rights and responsibilities of both parties during lease termination
Which party holds rights to pursue remedies for breach of contract or nonpayment of rent according to the Management Agreement?
Only the owner
What are some tenant's rights outlined in the Management Agreement?
Right to sue for default
What does 'Eviction procedures' in the Management Agreement describe?
Procedures for removing tenants from premises
What is the main focus of fair housing laws at both federal and state levels?
Ensuring equal access to housing for all citizens
Which of the following is considered a discriminatory practice under fair housing laws?
Steering individuals to or away from certain neighborhoods based on protected characteristics
What is the purpose of the Civil Rights Act of 1866 regarding housing?
Prohibit discrimination based on race in selling or leasing housing
What are some forms of illegal discrimination mentioned in the text?
Discriminatory misrepresentation and steering individuals
Under which federal legislation are exceptions to fair housing laws required to be carefully considered and justified?
Civil Rights Act of 1968 (Title VIII)
What is an example of an exemption under Title VIII of the Civil Rights Act of 1968?
Leasing facilities owned by private clubs
What is the consequence of failing to publicly exhibit compliance with fair housing laws by brokers?
Interpretation as discriminatory behavior
Under the Fair Housing Amendments Act of 1988, discrimination is prohibited based on which of the following?
Sex, disability status, or family composition
What hazardous material found in foam insulation and pressed wood products must be removed by experts to prevent contamination?
Urea formaldehyde
What must lenders provide when denying credit to an applicant according to the Equal Credit Opportunity Act?
A reason for credit denial
Which federal law governs water pollution control and sets standards for controlling water pollution?
The Safe Drinking Water Act
What is the main responsibility of licensees and principals regarding hazards of lead-based paint?
To disclose and rectify hazards
Which toxic gas, if present in a home, can be emitted by gas space heaters, chimneys, furnaces, and stoves?
Carbon monoxide
What action should be taken to comply with air quality standards before selling a property?
Test for carbon monoxide, radon, formaldehyde, or other toxic chemicals.
What legislation controls air pollution on a national scale and sets pollutant-emission standards?
The Clean Air Act
What is the consequence of failing to disclose the presence of underground storage tanks (UST) in a property?
A possible lawsuit due to commercial danger if leaking USTs are present.
What is the purpose of termite inspections?
To uncover pest infestations
What is the seller's responsibility regarding disclosures in a real estate transaction?
Provide all required disclosure documents to the buyers
What is the main focus of the National Association of Realtors® Code of Ethics?
Covering all areas related to practice and transactions
What unethical practice in real estate involves exploiting unfair benefits?
Defaming competitors
What is the purpose of love letters in a real estate transaction?
To augment an offer's appeal with personal persuasion
What does the term 'wholesaling' in real estate refer to?
Selling property without taking possession for immediate profit
What is a key responsibility of homeowners' associations when it comes to property disclosures?
Providing all required disclosure documents and forms
What is the primary focus of general inspections in real estate?
Identifying need for repairs and maintenance procedures
What is the primary role of agents in real estate transactions?
Facilitating the process effectively
Why are termite inspections recommended annually in real estate?
To uncover termite infestations not easily detected by non-experts
What must be completed by the seller before transferring the title to the buyer?
Proving marketability through title insurance
What does RESPA aim to promote in real estate transactions?
Transparency and kickbacks
What type of mortgages does RESPA apply to?
Residential property purchases involving federally-related mortgages
What form must lenders use to itemize all transaction costs prior to closing?
H-25 Closing Disclosure form
What is prohibited by RESPA regarding referral fees and business relationships in a real estate transaction?
Compensation for referring business
What term is used to describe the excess of debits over credits for the buyer in a real estate transaction?
$1,000 debit
What is the purpose of TRID in real estate transactions?
Promoting transparency and prohibiting kickbacks
What must lenders provide borrowers within three days of receiving a loan application?
"Loan Estimate" of settlement costs
"The Truth-in-Lending Integrated Disclosures Rule" merges forms outlined in which two regulations?
"Good Faith Estimate" and "HUD-1 forms"
"Your Home Loan Toolkit" is provided to help borrowers understand which process better?
"The mortgage process"
What does the Management Agreement specify regarding compensation for the manager?
A combination of both a fixed fee and a percentage of revenue
Which party has the right to perform management tasks without interference according to the Management Agreement?
Property manager
What is the purpose of the Equal Opportunity statement in the Management Agreement?
Affirming commitment to fair housing laws
According to the Management Agreement, what is the landlord's right to enter and inspect premises based on?
Right to examine books and records
What is the manager's liability as outlined in the Management Agreement?
Liability for trust funds held on behalf of owner or tenants
Under the Management Agreement, what are some of the tenant's rights and responsibilities related to?
Rights regarding quiet enjoyment of premises
What are property managers responsible for reporting to the owners?
Financial performance and physical condition of the property
Why is it important for property managers to use disclaimers or qualifiers when expressing opinions or estimates?
To avoid lawsuits and damages
What should property managers consider when allocating funds for capital expenditures?
Setting aside funds for unexpected expenses
Why do property managers need to comply with fair housing laws and other relevant regulations?
To protect the rights of tenants and owners
What do property managers act as when managing owners' assets?
Fiduciaries
How can property managers ensure compliance with regulations like the Americans with Disabilities Act?
By ensuring accessibility and accommodations for disabled tenants
What is the consequence of misrepresenting information as a property manager?
Lawsuits, damages, or loss of reputation
Why do property managers need to maintain accurate and complete records of trust fund transactions?
To ensure transparency and accountability
What should property managers do to keep a property rented by suitable tenants?
Screen applicants, enforce leases, and handle complaints
What is the purpose of the 365-Day Method in real estate calculations?
To determine the prorated amount of a payment based on a yearly or monthly rate
Which risk management strategy involves shifting the responsibility for a loss to another party?
Transference
What type of insurance covers physical damage to property caused by flooding?
Flood
What is the main responsibility of agents in relation to fair housing laws?
To comply with federal and state laws prohibiting housing discrimination
What does the Errors and Omissions (E & O) insurance cover in real estate?
Legal costs and damages resulting from professional negligence
Which risk management strategy involves accepting and bearing the consequences of a loss?
Retention
What should real estate agents do to reduce the risk of errors or omissions?
Disclose relevant information to clients
'Retention' in risk management involves:
Accepting and bearing the consequences of a loss
'Consequential loss' insurance covers:
Losses caused by business interruption due to a covered event
Which housing scenario is exempted from fair housing laws?
Single-family homes sold or rented without a real estate agent involved
Learn about causes of discipline commission actions and misrepresentation, including practicing with an expired license and conveying inaccurate information. Explore best practices for avoiding misrepresentation like calculating areas accurately and using disclaimers.
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