Chapter 2: Ethics, Fair Housing and Trust Accounts Flashcards
Why is it important for licensees to understand the Americans with Disabilities Act?
Brokers must evaluate whether they need to make physical changes to their office space to comply with the law.
Licensees should inform their commercial and investor clients of the need to have their leases professionally evaluated and their offices inspected for compliance.
Alex Jones owns a duplex and lives in one unit. He refuses to rent the other unit to families with children. What would you say about Alex’s actions?
Alex is within the guidelines of the Fair Housing Act since he is the owner of a dwelling that has fewer than four units, one of which is owner-occupied.
If a person feels like he or she has been discriminated against, how long does that person have to file a complaint?
With HUD - within one year of the alleged act.
In state or federal court - within two years of the alleged act.
Salesperson Sally tells her senior citizen buyers that the home they want to view is located in a neighborhood with several small children and loud teenagers. She tells them they would not be comfortable in this home and she shows them a list of homes in other neighborhoods she thinks would be more appropriate. What would you say about Sally’s behavior?
Sally is guilty of steering, which is prohibited by Fair Housing laws.
Which California fair housing law(s) apply to financial institutions?
Both the Unruh Civil Rights Act and the Holden Act.
Define panic selling.
Panic selling is soliciting a listing or inducing someone to sell by telling him or her that persons of a certain protected class are moving into the neighborhood.
Broker Sam receives a deposit check from a client, along with the purchase contract. How long does he have to deposit it into his trust account?
Sam has three business days to deposit the check, unless the buyer authorizes him to hold the uncashed check until the offer is accepted.
How much of his own money can broker Jake keep in a trust account and not be considered guilty of commingling?
Up to $200 to use for service fees on the account.
If a broker receives a deposit check with a purchase contract, which of these is he not allowed to do?
Deposit it directly into escrow.
Give it to the principal.
Deposit into the brokerage business account.
Hold it with the buyer’s permission until the contract is accepted.
Deposit into the brokerage business account.
Which Fair Housing Law added sex to the list of protected classes?
Housing and Community Development Act
Title VIII of the Civil Rights Act of 1968
Jones v. Mayer
Fair Housing Amendments Act
Housing and Community Development Act
If a person believes he or she has been discriminated against, how long does he or she have to file a HUD complaint?
30 days
90 days
1 year
2 years
1 year
A person who believes he or she has been discriminated against has how long from the time of the alleged violation to file a suit in a state or federal court?
6 months
12 months
18 months
24 months
24 months
A broker induces an owner to sell by telling him that Hispanics are moving into the neighborhood. This broker is guilty of what prohibited activity?
Redlining
Panic selling
Steering
Misrepresentation
Panic selling
Which of the following is not a source of information for professional ethics codes?
State laws
Licensing regulations
Real estate associations
Real estate schools
Real estate schools
Which is not a true statement about the Americans with Disabilities Act?
A broker might need to change the layout of the office to make the aisles wider for clients in wheelchairs.
A duplex owner might need to remodel the kitchen in the rental unit to accommodate persons with disabilities.
An apartment manager might be required to allow a tenant with a disability to widen a doorway.
A shopping center might have to remodel their public restrooms.
A duplex owner might need to remodel the kitchen in the rental unit to accommodate persons with disabilities.
