Chapter 2- Ethics, Fair houding, Trust Funds, And Other Legal Issues

Question 1

The realtors code of ethics is based on…

Answer 1

The golden rule

Question 2

Realtists

Answer 2

1947- African American brokers founded national association of real estate brokers and adopted the word realtist to designate their members. They strive to increase the professionalism of the real estate industry. Many realtists are also realtors.

Question 3

Fair Housing

Answer 3

Federal laws to abide by for fair housing and anti discrimination legislation.

Question 4

13th amendment

Answer 4

Abolished slavers

Question 5

Civil rights act of 1866

Answer 5

Public property- all were allowed to have property.

Question 6

Jones V Mayer

Answer 6

Private sales of real estate based on race- can’t discriminate

Question 7

Civil rights act of 1968 prohibited steering, blockbusting, redlining. What are these terms?

Answer 7

Steering- directing ppl of specific groups or races away from or toward particular areas.
Blockbusting- the process of inducing panic selling by stating prices will drop due to a minority group moving in to the area. AKA panic peddling, panic selling.
Redlining- the refusal to loan within an area (lenders).

Question 8

Unruh Act

Answer 8

Prohibits discrimination in all business establishments. Applies to businesses.

Question 9

Rumored fair housing act

Answer 9

Aka fair employment and housing act, prohibits discrimination in supplying housing.

Question 10

Sherman Antitrust Act

Answer 10

A federal act to protect consumers from businesses that conspired to control prices and or competition. The act prohibits price fixing, market allocation, group boycotting, tie in ageeements.

Question 11

Price fixing

Answer 11

Brokers will add in a statement in bold to listing advising seller that commissions are negotiable.

Question 12

Trust funds

Answer 12

Are client’s money.

Question 13

Trust accounts

Answer 13

Where client money belongs. Signatories on trust accounts (ppl who can withdraw) are brokers, licensed salesperson, and unlicensed but bonded.

Question 14

Commingling

Answer 14

Holding funds without authorization. Mixing broker funds with client funds.

Question 15

Conversion

Answer 15

Spending client money.

Question 16

Trust accounts must be in the name of the broker as trustee because

Answer 16

It’s not just 1 client’s money in the account.

Question 17

Trust accounts must…

Answer 17

Be reconciled monthly, account balance checked daily, records kept 3 yrs minimum, broker pays audit violations.