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REST 51 Real Estate Practices > Ch 3: RE Law and Mortgage Law > Flashcards

Ch 3: RE Law and Mortgage Law Flashcards

1
Q

If you quit working for one brokerage and start working for another, the listing stays with:

a) the new brokerage
b) the original brokerage

A

b) the original brokerage

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2
Q

To combat foreclosure “rescue” scams such as those following the financial crisis of the late 2000s, CA passed THIS law

A

Mortgage Foreclosure Consultant Law

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3
Q

The Mortgage Foreclosure Consultant Law imposes ______ requirements

A

disclosure

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4
Q

The following is an example of what:
consultant offers to help homeowner fight foreclosure by “temporarily” transferring property title to the consultant. later, the consultant either sales the property to someone else or simply refuses to give title back.

A

exploitative foreclosure rescue scam

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5
Q

Anyone who offers (in exchange for money) to preform any services relating to foreclosures is a ____ ____

A

foreclosure consultant

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6
Q

Who cannot act as a foreclosure consultant?

A
  1. agents providing broker services in connection with a listing with a residence in foreclosure. unless they don’t have a listing agreement open or if the agent loans money to or accepts an advance fee from the homeowner.
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7
Q

foreclosure consultants are required to register with the _____ and provide a _____

A

California department of Justice;

surety bond

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8
Q

T/F: Real estate agents are not exempt from the Mortgage Foreclosure Consultant Law

A

False

Typically, real estate licensees, who provide brokerage services in connection with a listing agreement and who will not be compensated until after the services have been provided

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9
Q

A person who meets the foreclosure consultant definition must enter into a written _____ agreement with the homeowner before providing any service

A

foreclosure consultant service

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10
Q

What does the foreclosure consultant service agreement has to disclose:

  1. The specific _____ the consultant will perform;
  2. The ___ & ___ of the compensation the consultant will receive; and
  3. That the homeowner may cancel the agreement within ____ business days of _____
A

1) services
2) amount; terms
3) three (3); receiving the disclosure

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11
Q

a consultant must enter into a ____ contract with the homeowner known as a ____ ___ ____ ____.

A

written;

foreclosure consultant service agreement

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12
Q

how long does a homeowner have to cancel a foreclosure consultant service agreement?

A

midnight of the fifth (5th) business day* after the day on which the owner signed the contract

*as defined in subdivision (e) of Section 1689.5

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13
Q

when does the foreclosure consultant get compensated?

A

When he/she has preformed EVERY service promised in the agreement.

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14
Q

Why must the foreclosure consultant first perform EVERY service promised in the foreclosure consultant service agreement?

A

to avoid the consultant from acquiring enough money and purchasing the home instead of helping the homeowner with it

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15
Q

violations of a mortgage foreclosure consultant law are considered _____-, with each violation punishable by a fine of up to $____, up to ___ year in prison, or ___

A

__?__;
$10,000;
One (1) year;
both

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16
Q

What are main federal antidiscrimination laws that apply in real estate?

A
  • Fair Housing Act of 1968
  • Blockbusting
  • Steering
  • Redlining
  • Unruh Civil Rights Act
  • Fair Employment and Housing Act
  • Housing Financial Discrimination Act
  • Americans with Disibilities Act
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17
Q

Fair Housing Act of 1968

A
  • Makes it illegal to discriminate on the basis of race, color, religion, sex, national origin, disability, or familial status in the sale or lease of real estate
  • applies to residential transactions.
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18
Q

Blockbusting

A

Occurs when someone tries to induce a homeowner to list their property because a particular type of person is moving into the neighborhood which will cause the value to go down. later, the inducer makes a profit by selling the property.

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19
Q

Steering

A

channeling prospective buyers a different direction because you’re a racist / discriminatior

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20
Q

Redlining

A

refusing to make a loan because you’re a rasist/discriminator

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21
Q

Unruh Civil Rights Act

A

protected classes = same as federal housing act PLUS ancestry, medical condition, genetic information, marital status, age and familial status.

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22
Q

Fair Employment and Housing Act

A
  • protected classes = same as fair housing and Unruh Civil rights plus gender expression, serial orientation, and source of income
  • applies to sale or lease of housing.
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23
Q

Housing Financial Discrimination Act

A

Requires a lender to make a lending decision based on the merits of the borrower and the security property, rather than the property’s neighborhood or location.

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24
Q

Americans with Disabilities Act

A

Guarantees people with disabilities equal access to employment goods and services

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25
Q

T/F: Fair Housing Act applies to commercial and residential transactions

A

False

Residential

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26
Q

Blockbusting is AKA ___

A

Panic selling

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27
Q

T/F: Unruh Civil Rights Act applies to business establishments only

A

True (?)

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28
Q

Fair Employment and Housing Act AKA ____

A

Rumford Act

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29
Q

In the ____ Act, protected classes include gender expression, serial orientation, and source of income

A

Fair Employment and Housing Act

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30
Q

In the ____ Act, protected classes include ancestry, medical condition, genetic information, marital status, age and familial status.

A

Unruh Civil Rights Act

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31
Q

The Housing Financial Discrimination Act (or Holden Act) prohibits _____

A

redlining

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32
Q

The _____ Act prevents lenders from denying mortgage loans or imposing stricter terms based on the racial or ethnic composition of the neighborhood where the security property is located.

A

Housing Financial Discrimination Act

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33
Q

Holden Act = AKA ___

A

Housing Financial Discrimination Act

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34
Q

the most important thing to remember about the federal fair housing act exemptions is that they ——-.

A

never apply when a real estate agent is involved in a transaction

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35
Q

D.F.E.H = ____

A

Department of Fair Employment and Housing

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36
Q

The Fair Housing Act is enforced by the Dept. of ____, but they may also refer complaints to the ____

A

Housing and Urban Development (HUD);

CA Dept. of Fair Employment and Housing

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37
Q

Fair Housing Act exemptions still apply to real estate agents involved in a transaction

A

False

the exemptions NEVER apply when a real estate agent is involved in a transaction

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38
Q

The _____ Act, prohibits a seller or landlord from asking about race, color, religion, sex, gender, gender identity, gender expression, sexual orientation, martial status, national origin, ancestry, familial status, source of income, disability, or genetic information of any prospective buyer or tenant

A

Fair Employment and Housing Act (AKA Rumford Act)

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39
Q

T/F: Landlords are also prohibited from asking about protected classes of a prospective buyer/tenant, per the Fair Employment and Housing Act

A

True

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40
Q

Housing discrimination complaints are investigated by the Department of _____

A

Fair Employment and Housing (DFEH)

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41
Q

If mediation is ineffective after a housing discrimination complaint, DFEH will file a lawsuit with the _____

A

CA Superior Court

42
Q

The ____ Act, prohibits lenders from considering the racial, ethnic, religious, or national origin composition of the neighborhood.

A

Housing Financial Discrimination Act (AKA Holden Act)

43
Q

A licensee who engages in discriminatory activity in violation of the provisions is subject to disciplinary action by the ____

A

Bureau of Real Estate

44
Q

All residential advertising should contain the ______ logo or slogan

A

Equal Housing Opportunity

45
Q

The ____ Act helps guarantee people with disabilities equal access to employment, goods, and services.

A

Americans w/ Disabilities

46
Q

The ADA defines a disability as any ____ or ____ impairment that substantially limits one or more major life activities.

A

physical or mental

47
Q

A disability protected by the ADA must _____ limit 1(+) life activity

A

substantially

48
Q

You (sales agent) must display a _____ at any place of ____ (location type) involving the sale, rental, or financing of ___ (type of) property

A

Fair housing poster;
business;
residential

49
Q

____ (type of) homes do not need to display a fair housing poster if an owner owns fewer than three single-family homes for rent

A

Single-family

50
Q

The definition of _____ in the ADA covers any nonresidential place that is owned, operated, or leased by a private entity and that is open to the public, if operation of the facility affects commerce.

A

public accommodation

51
Q 
Which law prohibits discrimination in real estate transactions based on race, with no exceptions?
A. Civil Rights Act of 1866
B. Civil Rights Act of 1964
C. Civil Rights Act of 1968
D. Fair Housing Act
A

A. Civil Rights Act of 1866

52
Q

The Civil Rights Act of ____ is limited to programs where the federal government offers financial assistance

A

1964

53
Q

the Fair Housing Act (a part of the Civil Rights Act of ____) is limited to residential transactions and has several exemptions

A

1968

54
Q

How many types of rental housing are excluded from fair housing laws in CA

A

3

55
Q

What are the three types of rental housing are excluded from fair housing laws in CA:

Housing operated by a private club or organization that is limited to its members

A

1) Owner-occupied, single-family homes when only one tenant is to live in the house (and the owner has not published discriminatory advertisements or notices)
2) Shared living situations that express a stated preference for same-sex roommates
3) Housing operated by a private club or organization that is limited to its members

56
Q 
The federal Fair Housing Act protects persons based on:
A. marital status
B. age
C. national origin
D. military status
A

C. national origin

57
Q

T/F: The Federal Fair Housing Act does not apply to the sale or rental of a single-family home by the owner if certain conditions are met

A

True

58
Q

The Federal Fair Housing Act = Title ___(#) of the Civil Rights Act of ____ (year)

A

Title VIII of the Civil Rights Act of 1968

59
Q

2 places potential buyers can get more information about a neighborhood?

A
  1. Census Bureau

2. Local Chamber of Commerce

60
Q

T/F: The fair housing laws under the disabled persons classification protect persons with AIDS

A

True

61
Q

Under the Fair Housing Act, what is HUD’s first action on receiving a complaint of illegal discrimination?

A

Within 100 days of the filing of the complaint, HUD either determines that reasonable cause exists to bring a charge of illegal discrimination or dismisses the complaint

62
Q

HUD has ___ days of the complaint’s filing to either determine whether ___ exists or ____

A

100;
reasonable cause;
dismiss

63
Q

T/F: discriminatory standards which are reasonably related to the operation of the income property and apply equally to all members of the public are valid

A

True

64
Q

_____ Act prohibits discrimination by anyone

in the business of providing housing or any commercial real estate facility

A

Unruh Civil Rights Act

65
Q

T/F: Owners of residential properties are exempt from the prohibitions laid out in the Unruh Civil Rights Act

A

False
Unruh Civil Rights Act prohibits discrimination by anyone in the business of providing housing or any commercial real estate facility.
Brokers, housing developers, apartment owners, condominium owners and single family residence (SFR) owners are considered to be in the business of providing housing.

66
Q

___ Act contains the requirements for the senior housing exemption

A

Unruh Civil Rights Act

67
Q

T/F: A landlord may not refuse to rent residential property to a blind tenant due to the tenant’s guide dog.

A

True
- The refusal to rent to a disabled tenant on these
grounds is unlawful discrimination.
- This protection is also provided to deaf and other disabled persons who use specially trained dogs to assist them

68
Q

T/F: A landlord may charge an additional security deposit for the disabled tenant’s guide dog

A

False

69
Q

T/F: a landlord with a pet restriction policy is not required to rent an apartment to a disabled tenant if the dog is not specially trained to assist the tenant

A

True

70
Q

A disabled tenant who is dependent on their spouse for financial support and his/her spouse both sign the lease agreement. The spouse’s income meets the landlord’s minimum income requirement to rent.
The landlord __can(not)__ refuse to rent the couple an apartment, claiming the disabled
tenant’s income does not meet minimum income requirements.

A

Cannot
The landlord may not deny housing to the couple based on the disabled
tenant’s financial dependency on their spouse as the combined income of the
couple meets minimum income requirements. Thus, the landlord’s refusal to
rent an apartment to the couple based on the tenant’s dependence on their
spouse’s income is unlawful discrimination.

71
Q

A disabled person being discriminated against may seek a court ordered
injunction against the discriminatory activity. The injunction may be sought
by:
1)
2)
3)
4)

A

1) the person being discriminated against;
2) the city attorney;
3) district attorney; or
4) the Attorney General.

72
Q

The minimum monetary award for discrimination against a disabled person is ___

A

$1,000

73
Q

Which Fair Housing Law added sex to the list of protected classes?

A

Housing and Community Development Act

74
Q

What type of appraisal report is commonly relied upon in California by a lender financing the purchase of a single-family residence?

a. Self-Contained Report
b. Summary Report
c. New Subdivision Public Report
d. Home Inspection Report

A

b. Summary Report

75
Q

Who enforces anti-discrimination and assures housing accommodations regardless of race, creed, or color?

A - Real Estate Commissioner

B - State Department of Housing

C - State Department of Labor

D - Department of Fair Employment and Housing

A

D - Department of Fair Employment and Housing

76
Q

A Caucasian person would have recourse to fair housing provisions under the Civil Rights Act of 1968 if denied the right to:

A - have minority neighbors.

B - attend the church of his or her choice.

C - meet neighbors.

D - choose neighbors.

A

A - have minority neighbors.

77
Q

Any complaint as to the violation of the United States Civil Rights Act of 1968 should be filed within how many days of its occurrence?

A - 180 days

B - 365 days

C- 30 days

D - 90 days

A

B - 365 days

78
Q

If you were asked to prepare newspaper ads for a home in a nice quiet area, $500,000 price range, you would appeal to:

A - prestige.

B - higher income families.

C - pride of ownership.

D - all of the above

A

D - all of the above

79
Q

The due date for the second installment of real property taxes is:

A - December 10.

B - February 1.

C - March 1.

D - April 10.

A

B - February 1.

80
Q

Fire insurance should allow the policy holder to:

A - gain in the event of a claim.

B - make at least 4 claims before cancellation of the policy.

C - neither gain nor lose in the event of a claim.

D - keep his loss to no more than $100,000.

A

C - neither gain nor lose in the event of a claim.

81
Q

A real estate broker negotiated the sale of a home. Title was deeded to the buyer. The broker must notify buyer and seller within 30 days, in writing, of the:

A - amount of commission he received.

B - selling price of the property.

C - new loans against the property.

D - disposition of deposits placed into his trust account.

A

B - selling price of the property.

82
Q

The buyer and seller are usually notified by the ____ of the selling price

A

escrow company (But the broker is responsible)

83
Q

A broker must notify the buyer and the seller of the selling price within ___ days after completion of the sale.

A

30

84
Q

T/F: The Civil Rights Act of 1968 applies only to race.

A

False

The Civil Rights Act of 1968 applies to housing discrimination based on race, color, religion, and national origin

85
Q

The ____ Act of ___ extended housing discrimination protections to families with children and persons with disabilities?

A

The Fair Housing Amendments Act;

1988

86
Q

T/F: The purpose of the civil rights laws that affect the real estate industry is to make everyone equal.

A

False

Purpose = create a marketplace in which all persons of similar financial means have a similar range of housing choices.

87
Q

T/F: A salesperson can sue a principal for commission

A

False

Only a brokerage may sue a principal for a commission

88
Q

TF: A salesperson can sue his/her brokerage his/her portion of the commission

A

True

89
Q

T/F: A listing belongs to the salesperson who obtained it

A

False

Listing agreements are in the brokerage’s name

90
Q

T/F: A salesperson who goes to work for another brokerage can’t take any listings along

A

True

91
Q

T/F: A salesperson can receive a commission from any licensed RE brokerage

A

False

92
Q

Fair Housing Act applies to:

1) sale or lease of ____ property
2) sale or lease of ____ for the construction of ____ buildings
3) advertisements, financing, and real estate brokerage activities regarding ____ (prop type) RE transactions

A

1) residential
2) vacant land; residential
3) residential

93
Q

T/F: Exceptions to the Fair Housing Act may apply when a real estate agent is involved in a transaction

A

False

they NEVER apply in this case

94
Q

The blockbuster profits either by:
1)
2)

A

1) purchasing the properties at reduced prices or

2) collecting commissions on the induced sales

95
Q

Blockbusters frighten homeowners by predicting a:

1) decline in ____;
2) decline in ____; or
3) increase in ____

A

1) decline in property values
2) decline in neighborhood schools
3) increase in crime

96
Q

Leading a client or customer toward or away from specific neighborhoods based on race (or another protected characteristic) in order to maintain or change the character of those neighborhoods = ____

A

Steering

97
Q

T/F: It’s best to avoid any statements about - or illusions to - the racial or ethnic composition of a neighborhood

A

True

Steering doesn’t have to be blatant to be illegal

98
Q

An example of ____:
it’s illegal for a lender to refuse to make a home loan just because the home the applicant wants to buy is located in a predominantly immigrant neighborhood

A

redlining

99
Q

T/F: Lenders are allowed to reject a loan application when the property is located in a neighborhood where property values are declining

A

Yes

100
Q

Lenders can reject a loan application when the property is in a neighborhood with declining property values if the rejection is based on ____ ____ criteria (not on the racial or ethnic composition of the neighborhood)

A

objective economic

101
Q

Penalties for licensee discriminatory conduct:

A
  • Injunction
  • damages
  • payment of injured party’s atty fees
  • civil penalty

REST 51 Real Estate Practices (34 decks)

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