Podcast
Questions and Answers
The Fair Housing Act is an example of an antitrust law.
The Fair Housing Act is an example of an antitrust law.
False
A broker can pay a salesperson affiliated with another broker directly for their services.
A broker can pay a salesperson affiliated with another broker directly for their services.
False
A written agreement is required for a broker to sue for a commission.
A written agreement is required for a broker to sue for a commission.
True
Salespersons can share their compensation with other salespersons regardless of the brokerage they belong to.
Salespersons can share their compensation with other salespersons regardless of the brokerage they belong to.
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Antidiscrimination laws protect certain classes from discrimination in real estate transactions.
Antidiscrimination laws protect certain classes from discrimination in real estate transactions.
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The ownership of a listing belongs to the salesperson who completes the listing form.
The ownership of a listing belongs to the salesperson who completes the listing form.
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In a group boycott, real estate agents band together to refuse service to a third party.
In a group boycott, real estate agents band together to refuse service to a third party.
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A listing agreement form with a pre-printed commission rate is an example of illegal price fixing.
A listing agreement form with a pre-printed commission rate is an example of illegal price fixing.
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Discrimination against a disabled person seeking housing is prohibited under the Americans with Disabilities Act (ADA).
Discrimination against a disabled person seeking housing is prohibited under the Americans with Disabilities Act (ADA).
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A broker is allowed to refuse a listing based on the race of the seller.
A broker is allowed to refuse a listing based on the race of the seller.
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Asking current tenants to refer friends is legal as long as the inquiry isn’t based on race.
Asking current tenants to refer friends is legal as long as the inquiry isn’t based on race.
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Larger security deposits for single men are permissible under the Fair Housing Act.
Larger security deposits for single men are permissible under the Fair Housing Act.
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The Fair Housing Act prohibits discrimination based on disability, race, and marital status.
The Fair Housing Act prohibits discrimination based on disability, race, and marital status.
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The seller is exempt from paying a commission if they engage in a discriminatory transaction.
The seller is exempt from paying a commission if they engage in a discriminatory transaction.
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Engaging in a tie-in arrangement is legal as long as both parties agree.
Engaging in a tie-in arrangement is legal as long as both parties agree.
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Foreclosure consultant law applies to real estate listing agents who charge a sales commission.
Foreclosure consultant law applies to real estate listing agents who charge a sales commission.
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Foreclosure consultants are required to sign a written contract that accurately describes their services and costs.
Foreclosure consultants are required to sign a written contract that accurately describes their services and costs.
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Foreclosure consultants can take title to the homeowner's property as part of their agreement.
Foreclosure consultants can take title to the homeowner's property as part of their agreement.
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The Fair Housing Act prohibits discrimination in real estate transactions based on sex, including gender identity.
The Fair Housing Act prohibits discrimination in real estate transactions based on sex, including gender identity.
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Steering is a lawful practice in real estate transactions.
Steering is a lawful practice in real estate transactions.
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The Unruh Civil Rights Act protects against discrimination by businesses, including real estate brokerages.
The Unruh Civil Rights Act protects against discrimination by businesses, including real estate brokerages.
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The Fair Employment and Housing Act allows homeowners seeking room mates to discriminate based on familial status.
The Fair Employment and Housing Act allows homeowners seeking room mates to discriminate based on familial status.
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Penalties for violating antidiscrimination laws can include civil fines and compensatory damages.
Penalties for violating antidiscrimination laws can include civil fines and compensatory damages.
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The Americans with Disabilities Act requires private businesses to remove barriers in non-public areas.
The Americans with Disabilities Act requires private businesses to remove barriers in non-public areas.
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Price fixing among competing brokers is a permissible practice as long as it is discussed among themselves.
Price fixing among competing brokers is a permissible practice as long as it is discussed among themselves.
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Real estate agents must comply with state Real Estate Law provisions to avoid disciplinary action.
Real estate agents must comply with state Real Estate Law provisions to avoid disciplinary action.
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Blockbusting is a legal practice intended to encourage homeowners to sell their properties.
Blockbusting is a legal practice intended to encourage homeowners to sell their properties.
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Antitrust laws, including the Sherman Antitrust Act, seek to promote competition in the business sector.
Antitrust laws, including the Sherman Antitrust Act, seek to promote competition in the business sector.
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Commissions in real estate transactions are fixed by law.
Commissions in real estate transactions are fixed by law.
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A group boycott requires a formal agreement among competitors.
A group boycott requires a formal agreement among competitors.
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The National Environmental Policy Act (NEPA) requires an environmental impact statement only for public projects.
The National Environmental Policy Act (NEPA) requires an environmental impact statement only for public projects.
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Under the Clean Water Act, landowners need a permit to change a wetland area.
Under the Clean Water Act, landowners need a permit to change a wetland area.
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Radon gas is harmless as long as there is adequate ventilation in buildings.
Radon gas is harmless as long as there is adequate ventilation in buildings.
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Lead-based paint was banned in consumer paint after 1978.
Lead-based paint was banned in consumer paint after 1978.
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Legal drug manufacturing poses no long-term health risks to properties.
Legal drug manufacturing poses no long-term health risks to properties.
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Mold can be completely eliminated from properties without any maintenance.
Mold can be completely eliminated from properties without any maintenance.
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Self-disclosing geologic hazards is not necessary in real estate transactions.
Self-disclosing geologic hazards is not necessary in real estate transactions.
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Individual brokers cannot allocate customers or territory within their own brokerage.
Individual brokers cannot allocate customers or territory within their own brokerage.
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The California Coastal Act created the Coastal Commission to regulate development along the coastline.
The California Coastal Act created the Coastal Commission to regulate development along the coastline.
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A transfer disclosure statement is required in 'for sale by owner' transactions.
A transfer disclosure statement is required in 'for sale by owner' transactions.
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Inspection reports can replace the need for a transfer disclosure statement.
Inspection reports can replace the need for a transfer disclosure statement.
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Seismic retrofitting is essential to handle earthquake risks in structures.
Seismic retrofitting is essential to handle earthquake risks in structures.
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Ventilation in homes has no effect on radon levels.
Ventilation in homes has no effect on radon levels.
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An exclusive agency listing allows the property owner to sell the property without paying any broker a commission.
An exclusive agency listing allows the property owner to sell the property without paying any broker a commission.
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A safety clause in a listing agreement protects the broker from liability for the seller's incorrect assertions.
A safety clause in a listing agreement protects the broker from liability for the seller's incorrect assertions.
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In California, sellers of residential properties with up to four units must complete a transfer disclosure statement.
In California, sellers of residential properties with up to four units must complete a transfer disclosure statement.
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The buyer has five days to rescind a transfer disclosure statement if it was given in person.
The buyer has five days to rescind a transfer disclosure statement if it was given in person.
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Either the seller or the broker can unilaterally terminate a listing agreement without any consequences.
Either the seller or the broker can unilaterally terminate a listing agreement without any consequences.
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Net listings, allowing brokers to keep amounts above a specified selling price, are encouraged.
Net listings, allowing brokers to keep amounts above a specified selling price, are encouraged.
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The seller must always complete the disclosure form for properties subject to the transfer disclosure statement requirement.
The seller must always complete the disclosure form for properties subject to the transfer disclosure statement requirement.
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In a transaction subject to a transfer disclosure statement, any writing can fulfill the requirement as long as it identifies the property clearly.
In a transaction subject to a transfer disclosure statement, any writing can fulfill the requirement as long as it identifies the property clearly.
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With an exclusive right to sell listing, the broker is compensated regardless of whether the owner sells the property himself.
With an exclusive right to sell listing, the broker is compensated regardless of whether the owner sells the property himself.
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The Barrymores violated the federal Fair Housing Act by discriminating against the prospective buyer based on his accent.
The Barrymores violated the federal Fair Housing Act by discriminating against the prospective buyer based on his accent.
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Commercial property owners are exempt from the Federal Fair Housing Act restrictions.
Commercial property owners are exempt from the Federal Fair Housing Act restrictions.
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Price fixing is considered an antidiscrimination term.
Price fixing is considered an antidiscrimination term.
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Redlining is a practice used to prevent minority groups from obtaining housing loans.
Redlining is a practice used to prevent minority groups from obtaining housing loans.
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The Clean Water Act requires a permit before development in wetlands can occur.
The Clean Water Act requires a permit before development in wetlands can occur.
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Asbestos is hazardous in its intact condition.
Asbestos is hazardous in its intact condition.
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Urea formaldehyde is commonly found in adhesives used to make pressed wood products.
Urea formaldehyde is commonly found in adhesives used to make pressed wood products.
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Radon is a benign gas that poses no health risks.
Radon is a benign gas that poses no health risks.
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Ingestion of lead-based paint can lead to brain damage, particularly in small children.
Ingestion of lead-based paint can lead to brain damage, particularly in small children.
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Mold only affects individuals with pre-existing respiratory issues.
Mold only affects individuals with pre-existing respiratory issues.
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The National Environmental Policy Act requires state agencies to provide an impact statement.
The National Environmental Policy Act requires state agencies to provide an impact statement.
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The California Coastal Act is designed to regulate development along the coast.
The California Coastal Act is designed to regulate development along the coast.
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The Clean Water Act allows landowners to fill or drain wetlands without a permit.
The Clean Water Act allows landowners to fill or drain wetlands without a permit.
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The Fair Housing Act protects against discrimination based on marital status.
The Fair Housing Act protects against discrimination based on marital status.
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A real estate agent who only rents to women violates fair housing laws.
A real estate agent who only rents to women violates fair housing laws.
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The Unruh Civil Rights Act can impose penalties for discriminatory rental practices.
The Unruh Civil Rights Act can impose penalties for discriminatory rental practices.
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A broker's failure to display diverse models in marketing materials cannot lead to a discrimination lawsuit.
A broker's failure to display diverse models in marketing materials cannot lead to a discrimination lawsuit.
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All methods of advertising rental properties must comply with the Fair Housing Act.
All methods of advertising rental properties must comply with the Fair Housing Act.
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Environmental impact statements are only required for actions that may have significant environmental effects.
Environmental impact statements are only required for actions that may have significant environmental effects.
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Federal laws can punish a broker for refusing to represent a buyer based on their disability.
Federal laws can punish a broker for refusing to represent a buyer based on their disability.
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Study Notes
Listing Regulations
-
Real Estate Law:
- Brokers can share commissions only with other brokers or affiliated salespersons.
- Salespersons cannot share compensation with other salespersons.
- Written agreement required for brokers to sue for commission (listing or buyer representation agreement).
- Only brokers can sue the principal, not salespersons.
- Brokers own listings, even if salesperson completed the form; the listing goes with the original broker if salesperson leaves.
-
Mortgage Foreclosure Consultant Law:
- Applies to those who offer compensation to stop foreclosure or improve homeowner credit.
- Listing agents collecting sales commissions are not typically covered.
- Written contract needed for foreclosure consultants, detailing costs and services.
- Foreclosure consultants can't take title to the property.
-
Antidiscrimination Laws:
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Fair Housing Act: Protects against discrimination based on race, color, religion, sex, national origin, disability, familial status (and potentially criminal history).
- Covers sales, leasing, brokerage services, lending, advertising.
- Examples like blockbusting, steering, and redlining are illegal.
- Applies to real estate agents even if property owner discriminates.
- Penalties include fines, damages, attorney's fees, and injunctions enforced by federal and state agencies.
-
California Antidiscrimination Laws:
-
Unruh Civil Rights Act: Prohibits businesses, including real estate, from discriminating on specific characteristics.
- Protects families with children, and prohibits "no children" clauses (except in senior housing).
- Fair Employment and Housing Act (Rumford Act): Similar protections in housing transactions, including sex, sexual orientation, and gender, with exemptions for shared living spaces and senior housing.
- Housing Financial Discrimination Act (Holden Act): Loan decisions based on borrower merits - not location.
- Real Estate Licensees must comply with discrimination provisions.
-
Unruh Civil Rights Act: Prohibits businesses, including real estate, from discriminating on specific characteristics.
-
Americans with Disabilities Act (ADA):
- Requires removal of barriers for public accommodations if readily achievable.
- Includes making entrances more accessible, improving restrooms, relocating features. Not required to make changes in non-public areas or if not feasible.
-
Fair Housing Act: Protects against discrimination based on race, color, religion, sex, national origin, disability, familial status (and potentially criminal history).
-
Complying with Fair Housing Laws:
- Agents need to understand and comply with laws.
- Avoid actions implying prejudice or discrimination.
- Advertising should include the Equal Housing Opportunity logo/slogan. Agents should refuse a listing if seller is unwilling to comply.
- Certain activities are generally allowed: gathering data for government agency or special services, gathering data relevant to community property laws, factual responses about a neighborhood, affirmative efforts to recruit under-represented people or agents.
Antitrust Laws
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Sherman Antitrust Act: Prevents practices that reduce competition.
- Applies to individual or concerted business behavior.
- Protects the industry against unreasonable practices like price fixing, group boycotts, tie-in arrangements, and market allocation.
- Price Fixing: Brokers can't discuss commission rates except for allocating shared commissions. Commission rates are negotiable.
- Group Boycott: Businesses can't agree to exclude others from business, though one can avoid doing business with another. Multiple Listing services can't exclude brokers over fee policies.
- Tie-in Arrangement: Agreements to sell one product requiring purchase of another are illegal. Listing-back agreements are legal unless imposed as a sales condition.
- Market Allocation: A broker can allocate customers or territories within their own brokerage.
Environmental Issues
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Federal and State Environmental Laws:
- National Environmental Policy Act (NEPA): Requires environmental impact statements for federal actions affecting the environment.
- California Environmental Quality Act (CEQA): Similar to NEPA, but for public and private projects in California.
- California Coastal Act: Regulates development near the coast.
- Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA): Creates Superfund for hazardous waste cleanup, assigning liability to current and previous owners.
- Clean Water Act: Protects wetlands.
- Endangered Species Act: Protects habitats of threatened species.
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Environmental Hazards:
- Asbestos: Hazard when old or damaged, needing professional handling.
- Urea Formaldehyde: Dangerous initially, but less so in older forms.
- Radon: Gas seeping into buildings from uranium deposits.
- Lead-based Paint: Banned, needs proper handling or removal.
- Underground Storage Tanks: Regulated removal and cleanup (both federal and state).
- Water Contamination: Regularly test wells.
- Illegal Drug Manufacturing: Toxic chemicals pose health risks long-term, could lead to property seizure.
- Mold: Common problem in damp areas, can cause health problems for those sensitive.
-
Geologic hazards:
- Landslides, flooding, subsidence, earthquakes.
- Consult a geologist for potential issues on sloping land, past ground movement, flood zones, natural cavities, earthquakes.
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Description
Explore key concepts and regulations in real estate law, including the Fair Housing Act, antitrust laws, and compensation practices among salespersons. This quiz covers essential elements that impact real estate transactions and legal compliance. Test your knowledge and understanding of these vital legal frameworks.
