Ch 26: Other Laws Impacting Real Estate Flashcards
(39 cards)
Federal lead-based paint disclosure laws apply to what type of residential housing?
Houses built prior to 1978
Identify three types of housing units that are exempt from lead-based paint disclosure laws.
Housing built after 1977
Zero-bedroom units, such as efficiencies and lofts
Housing which is leased for less than 100 days, such as vacation houses or short-term rentals
Housing exclusively for the elderly, unless there are children living on the property.
Housing for the handicapped, provided there are no children living on the property
Rental housing that has been inspected by a certified inspector and found to be free of lead-based paint
Foreclosure sold homes
How many days does the buyer have to test for lead-based paint according to Federal law?
A buyer is allowed to up to 10 days to have the testing done.
Under what conditions are agents of the seller responsible for ensuring compliance under the lead-based paint disclosure rule?
Listing salespeople, selling salespeople, and buyer’s brokers, if paid by the seller through a cooperative brokerage agreement, are agents of the seller and are responsible for ensuring compliance under the rule.
What’s the penalty for violating the Sherman Antitrust Act?
Individual violators of the Sherman Act can be fined up to $350,000 and sentenced to up to 3 years in federal prison for each offense; corporations can be fined up to $10 million for each offense.
However, the Criminal Antitrust Penalty Enhancement and Reform Act of 2004 increased the maximum criminal penalty for individuals to 10 years’ imprisonment and a $1 million fine, and the maximum penalty for corporations to a $100 million fine.
What is market allocation? Give an example.
Market allocation is the division of markets by location or price. An example would be two companies getting together and deciding that one company would take one part of town, while the other company takes the other part.
Broker Jed tells buyer Sam that when he signs his purchase agreement, he must also purchase a subscription to Jed’s monthly newsletter. What would you say about this?
This is a tie-in arrangement which is prohibited by the Sherman Antitrust Act.
What does the Clayton Act allow private individuals to do?
Under the Clayton Act, private individuals are permitted to sue antitrust violators. If the suits are successful, the individuals can recover three times the damages incurred plus court costs and attorneys’ fees.
What was the intention of the Do-Not-Call federal registry?
The intention of the FTC’s Do-Not-Call registry is to stop unwanted interstate telemarketing calls to consumers.
List the three Do-Not-Call exceptions.
A person or company can make a solicitation if they are responding to a consumer’s inquiry.
Tax-exempt non-profit organizations are exempt.
Solicitations are allowed if the consumer has created an “established business relationship” (EBR) by making an inquiry, application, purchase, or other transaction.
The FCC requires solicitors and their company to maintain a record of consumer do-not-call requests for how long?
Requests must be honored for five (5) years.
What are the penalties for violating the National Registry?
Violations of the National Registry are subject to fines of up to $40,000 per violation, plus possible injunctive relief.
What is prohibited by the CAN-SPAM Act?
This Act prohibits sending unwanted “commercial” e-mail messages” to wireless devices without express prior authorization.
Explain the “opt out” condition of the CAN-SPAM Act.
Receivers of authorized messages must also be given an “opt out” choice to terminate the sender’s messages, which the sender must honor within ten days if exercised. Opting out must always be easy for the recipient.
What is the difference between the two types of consent outlined in the CAN-SPAM Act?
Express consent is when an individual provides an email or phone number and gives consent to send messages.
Inferred consent can occur through an existing business relationship or through conspicuous publications of work-related email address in certain situations.
Why is it important for real estate professionals to be aware of the CAN-SPAM Act regulations?
Real estate professionals need to be aware of the CAN-SPAM Act regulations since they commonly send emails and texts messages promoting a property, follow-up messages to other agents or consumers after viewing a property, and emails or text messages to solicit the listing of a person’s property.
What was the significant change regarding junk fax that was passed in the Junk Fax Prevention Act of 2005?
The change allows for an exception to previous junk fax legislation. Now, a business can be protected from violations of sending unsolicited faxes if there is already an established business relationship and the sender obtained the fax number according to specific guidelines.
What regulations apply to faxes sent as part of an established business relationship?
Do-not-fax. Unsolicited fax senders must cease such a practice upon request by the recipient.
Opt-out provisions. Senders must provide notice and contact information allowing the recipient to opt out of future transmissions within 30 days.
How does a consumer file a complaint against a business that violates the Junk Fax Prevention Act?
If a person or company violates the Act, the consumer can file a complaint with the FCC online, via phone, or by mail. A consumer can also file a complaint with state authorities, including consumer protection offices and the Attorney General’s office.
Regarding identity theft protection, FACTA grants consumers the ability to place fraud alerts in their credit files and also gives consumers the right to:
one free credit report a year.
In PA, how long do telemarketers have to remove names on the Do Not Call list from their calling list?
30 days
In children, exposure to lead can cause:
poor muscle coordination.
Also known as the Telephone Consumer Protection Act, or TCPA, the Do-Not-Call List addresses the regulation of:
unsolicited telemarketing phone calls.
In order to develop the Do Not Call List, the FTC finalized amendments to what piece of legislation?
The Telemarketing Sales Rule
