Chapter 8 Review Flashcards
Elements of Fraud
RID: Reliance, Intent, Damage
Purchase agreements Vs listing agreement
Purchase agreements are between a buyer and a seller. A listing agreement is between a seller and a broker and includes how the broker is to be paid by the seller.
Sherman Antitrust Act penalty
Individuals who make any contract, or engage in any combination or conspiracy are guilty of a felony.
They can be punished by exorbitant fines and up to ten years in federal prison for each offense.
Corporations can have criminal penalties up to millions of dollars.
Under some circumstances, a corporation may be fined more if victims lost or conspirators gained more than $100 million.
The earliest law protecting individuals in the lease or purchase of real property was adopted by
Civil Rights Act of 1866
Refusing to accommodate handicapped tenants’ needs, such as prohibiting guide dogs.
Title VIII of the Civil Rights Act, known as the Fair Housing Act (of 1968)
Congress could regulate the sale of private property in order to prevent racial discrimination
Jones v. Alfred H. Mayer Co., 392 U.S. 409 (1968) is a U.S. Supreme Court case
What are the penalties for discrimination?
- An alleged violation of the Civil Rights Act must be filed within one year of the action. Then, there are two years to file a federal civil court action.
2.Damages can range from humiliation, pain, anger, embarrassment, emotional distress and other relief. If a victim wins a federal civil court lawsuit, the law may also allow them to receive punitive damages ranging into millions of dollars.
Herron v. Blackwell, 908 F.2d 864, 870 (1990).
Tax Reform Act
This act was signed by then-President Reagan./It was designed to eliminate tax loopholes and incentives that induced homeownership rather than rental housing./ the Low-Income Housing Tax Credit was created to encourage investment in multifamily housing for the poor.
The Tax Reform Act of 1986 also includes a $25,000 net rental loss deduction provided that the home is not personally used for the greater of 14 days, or 10% of rental days, and the Average Gross Income of the property is less than $100,000.
FIRPTA
If a person is a foreign citizen and they sell a property in the U.S., taxes are owed. If they do not, the U.S. government can set a lien against the former property and collect the taxes owed from the new buyer
when the Interstate Land Sales Full Disclosure Act created by who ?
It was created by Congress in 1968.
It requires land developers to:
- Register subdivisions of 100 or more, non-exempt lots with the Department of Housing and Urban Development (HUD)
- Provide each potential buyer with a Property Report
Property Report
important information about lots and subdivisions, and must be delivered to each potential buyer prior to the signing of a purchase contract. HUD has no authority to enforce completion of promised facilities and amenities.
If a developer fails to complete promised facilities, or misstates or omits necessary disclosures ?
Developers’ failure to comply with this Act can result in suspension of their registration. HUD can also pursue civil and/or criminal action where fraudulent sales practices may have occurred.
What document contains important information about the lots and the subdivision and is required to be given to the buyer prior to signing of the purchase contract?
Property Report
The following is not a protected class under the Federal Fair Housing Act?
Age
Megan’s law . what to do as the agent ?
You should refer the prospective buyer to the internet website Texas Public Sex Offender Website. Do not look it up yourself. If you make a mistake, you could be subject to a lawsuit!
