Ch 26: Other Laws Impacting Real Estate

Question 1

Federal lead-based paint disclosure laws apply to what type of residential housing?

Answer 1

Houses built prior to 1978

Question 2

Identify three types of housing units that are exempt from lead-based paint disclosure laws.

Answer 2

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

Question 3

How many days does the buyer have to test for lead-based paint according to Federal law?

Answer 3

A buyer is allowed to up to 10 days to have the testing done.

Question 4

Under what conditions are agents of the seller responsible for ensuring compliance under the lead-based paint disclosure rule?

Answer 4

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.

Question 5

What’s the penalty for violating the Sherman Antitrust Act?

Answer 5

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.

Question 6

What is market allocation? Give an example.

Answer 6

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.

Question 7

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?

Answer 7

This is a tie-in arrangement which is prohibited by the Sherman Antitrust Act.

Question 8

What does the Clayton Act allow private individuals to do?

Answer 8

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.

Question 9

What was the intention of the Do-Not-Call federal registry?

Answer 9

The intention of the FTC’s Do-Not-Call registry is to stop unwanted interstate telemarketing calls to consumers.

Question 10

List the three Do-Not-Call exceptions.

Answer 10

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.

Question 11

The FCC requires solicitors and their company to maintain a record of consumer do-not-call requests for how long?

Answer 11

Requests must be honored for five (5) years.

Question 12

What are the penalties for violating the National Registry?

Answer 12

Violations of the National Registry are subject to fines of up to $40,000 per violation, plus possible injunctive relief.

Question 13

What is prohibited by the CAN-SPAM Act?

Answer 13

This Act prohibits sending unwanted “commercial” e-mail messages” to wireless devices without express prior authorization.

Question 14

Explain the “opt out” condition of the CAN-SPAM Act.

Answer 14

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.

Question 15

What is the difference between the two types of consent outlined in the CAN-SPAM Act?

Answer 15

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.

Question 16

Why is it important for real estate professionals to be aware of the CAN-SPAM Act regulations?

Answer 16

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.

Question 17

What was the significant change regarding junk fax that was passed in the Junk Fax Prevention Act of 2005?

Answer 17

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.

Question 18

What regulations apply to faxes sent as part of an established business relationship?

Answer 18

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.

Question 19

How does a consumer file a complaint against a business that violates the Junk Fax Prevention Act?

Answer 19

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.

Question 20

Regarding identity theft protection, FACTA grants consumers the ability to place fraud alerts in their credit files and also gives consumers the right to:

Answer 20

one free credit report a year.

Question 21

In PA, how long do telemarketers have to remove names on the Do Not Call list from their calling list?

Answer 21

30 days

Question 22

In children, exposure to lead can cause:

Answer 22

poor muscle coordination.

Question 23

Also known as the Telephone Consumer Protection Act, or TCPA, the Do-Not-Call List addresses the regulation of:

Answer 23

unsolicited telemarketing phone calls.

Question 24

In order to develop the Do Not Call List, the FTC finalized amendments to what piece of legislation?

Answer 24

The Telemarketing Sales Rule

Question 25

What is the principal federal statute that covers competition and is one of the most important pieces of antitrust legislation?

Answer 25

The Sherman Antitrust Act

Question 26

What Act was designed to cover restraints on interstate trade or commerce that are not covered under the Sherman Act?

Answer 26

The Clayton Antitrust Act

Question 27

In property sales transactions, the lead-based paint disclosure must occur:

Answer 27

prior to the seller’s acceptance of the buyer’s written offer to purchase.

Question 28

Matt Bower is a developer. Will Jones is a builder. Matt agrees to sell Will a lot, but he conditions the sale by insisting that Will agree to list the property with him after the home is built. What is Matt in violation of?

Answer 28

The Sherman Act

Question 29

State and federal laws designed to maintain and preserve business competition are called:

Answer 29

antitrust laws.

Question 30

In 1978 the federal government banned the use of lead-based paint in:

Answer 30

residential buildings.

Question 31

What is a person guilty of if her or she uses a computer or computer network without authority with the intent to falsify or forge electronic mail transmissions?

Answer 31

Unlawful transmission of electronic mail

Question 32

When Standard Oil merged with its competition by forming the Standard Oil Trust, that was basically the establishment of:

Answer 32

what we know as a board of trustees.

Question 33

The Do Not Call list is compiled from all registered Pennsylvania residents who want to:

Answer 33

avoid telemarketing calls.

Question 34

How long does a buyer of a property have to get lead-based paint testing done?

Answer 34

10 days

Question 35

Human exposure to lead is a toxic metal that attacks the:

Answer 35

the central nervous system.

Question 36

The Junk Fax Prevention Act of 2005, an amendment to TCPA, made a small but significant change to the law, by allowing unsolicited faxes to be sent to individuals and businesses:

Answer 36

having an established business relationship.

Question 37

According to the National Association of REALTORS, a licensee cannot call an expired listing if the owner of the property is on the Do-Not-Call list, unless:

Answer 37

it’s the expired listing of that licensee’s company.

Question 38

The CAN-SPAM Act went into effect on January 1, 2004 and influences the actions of businesses and individuals who:

Answer 38

use email as a marketing tool.

Question 39

What agency can provide extensive information regarding lead-based paint hazards?

Answer 39

The National Lead Information Center