CH 10 - Practice of RE Flashcards
Which two things must provider’s of trust funds acknowledge in writing?
- Which broker’s trust account will hold trust money.
2. Interest accrued on trust money will benefit the broker.
Conversion
Using the public’s money for some purpose other than what it was intended for.
Commingling
Mixing public money with personal/company money.
Earnest money should be delivered to broker within what time period?
no later than following business day
You could see “incompetence” used to describe who and why?
A broker-in-charge who doesn’t handle trust money as required has demonstrated incompetence.
Trust funds in cash or certified check must be deposited within what time period?
48 hours of receipt, excluding weekends and bank holidays
Trust funds in check must be deposited within what time period?
48 hours of lease signing, excluding weekends and bank holidays
Under no circumstances can anyone discriminate based on race. Which Supreme Court decision refers to this?
The Supreme Court Decision of 1968 (Jones vs Mayer) upheld the Civil Rights Act of 1866
Name the 7 protected classes
Race, Color, Religion, National Origin, Sex, Familial Status, Handicap
Records must be maintained for a minimum of __ years.
five
True or False: Buyer/tenant must acknowledge in writing they are waiving any interest accrued.
True
Civil Rights Act of _____ declared all US citizens, regardless of race/color shall have the right to purchase/sale/own real/personal property.
1866
True or False: To ensure restoration of the property upon a handicap tenant moving, the landlord may require an escrow account in the amount required to restore the property.
True
True or False: You can discriminate on age in housing.
True, age is not a protected class
It is illegal to place discriminatory statements in ________ related to the rent/sale of real property.
advertising
Fair Housing Law is federally enforced by ______.
HUD
Fair Housing Law is enforced in SC by _______.
SCHAC
Fair Housing complaints at the federal level, time limit to file: __________.
up to one year to file
Fair Housing complaints at the state level, time limit to file: __________.
up to 6 months
Penalty amounts for violations of Fair Housing Law:
$10,000, 1st offense
$25,000, 2nd offense in 5 years
$50,000, 3rd offense in 7 years
Blockbusting
Inducing homeowners to sell their properties by making representations about the entry or prospective entry of persons of a particular race/origin into the neighborhood.
Steering
Funneling of home buyers to a particular area based on the desire to keep the makeup of that neighborhood the same or intentionally change it.
Redlining
Mortgage lenders refuse to make loans available inside a specific geographic area (minority neighborhood).
A licensee may not advertise or conduct a real estate transaction involving real estate owned by another person without first _____________________.
obtaining a written listing agreement
When advertising or marketing in any medium, a licensee must clearly identify the _____________________.
the full name of the company
What is a blind ad?
an ad which does not identify the full name of the company
Intentional misrepresentation of fact or omission of fact is known as
fraud
stating an opinion that may exaggerate reality, and it’s legal
puffing
To be a Statutory Independent Contractor, what must occur?
At least 90% of real estate income must come real estate commissions
Commissions are always ________.
negotiable
A set commission is considered _________.
price fixing
Price fixing is a violation of what laws?
Anti-Trust Laws / Sherman & Clayton Acts
What are the penalties for violating Anti-Trust laws?
fines up to $5,000 and/or 6 months in prison
Who CANNOT legally receive a commission in connection with a real estate transaction?
unlicensed agents
Requirements (2) to be the procuring cause:
- must have an agency relationship
2. must have shown the property, negotiated contract, and go to closing without any break in chain of events
Requirements governing real estate transaction records must be kept and for how long are determined PRIMARILY by which authority?
State regulations and related rules
If a buyer asks you for advice on which type of title to use, what should you do?
Do not give advice because you aren’t legally permitted to give legal advice.
True or False: FHA DOES NOT cover people with physical or mental disabilities such as hearing, mobility, visual impairment, AIDS, etc.
False
