Morgan's (IX and XI) Flashcards
What is the purpose of trust (or escrow) accounts?
Provide an account that is separate from operational or personal accounts in which to maintain and account or transaction-related funds
Combining transaction funds with other funds that are required to be maintained separately
Commingling
Misappropriating funds, as in using earnest money to pay office expenses or for any personal use
Conversion
This act asserted one basic protection - there was to be no race-based discrimination in the housing market
The Civil Rights Act of 1866
Which U.S. Supreme Court decision reaffirmed the Civil Rights Act of 1866?
Jones v. Mayer (1968)
The federal Fair Housing Amendments ACt of 1988 include prohibiting discrimination in the sale, rental, or advertising of residential property for protected classes based on what characteristics?
- Race or color
- National origin
- Religious preferences
- Sex
- Handicapping conditions (having a physical or mental disability)
- Familial status
Who administers and enforces the Federal Fair housing laws?
HUD
List property transactions that are exempt from federal Fair Housing law.
- Sale or rental of a single-family dwelling by owner (without a real estate licensee’s involvement)
- Rental of rooms or units in 1 to 4 family dwellings if owner-occupied
- Preferences shown by a religious organization for its own members
- Preferences shown by a private club for its members
NOTE - even properties exempt from Fair Housing laws are protected against discrimination whenever based on race
What law includes provisions for handicapped access and accommodations in public buildings?
ADA
Under the provision of the ___, there are specific truth-in-advertising rules and guidelines, including that advertising must be truthful and non-deceptive, advertisers must have evidence to back up their claims, and advertisements cannot be unfair.
Federal Trade Commission Act
This federal law has a detailed set of loan disclosure and advertising requirements for lenders who originate residential loans.
Truth in Lending Act (TILA); part of the Consumer Credit Protection Act
What is the regulation that implements the TILA and explains how lenders are to comply with those parts of TILA that bear on consumer credit
Regulation Z
TILA is intended to enable the customer to examine loan offers to determine what 2 things?
- Cost of a cash-versus-credit transaction
2. Difference in the cost of credit among different lenders
According to the government, a licensed real estate agent may be treated as self-employed if what 2 criteria are met?
- All pay for services as an agent is directly related to sales or other output rather than to hours worked
- The services are performed under a written contract that provides the agent will not be treated as an employee for federal tax purposes
Commissions and fees are common components of ___ agreements.
Compensation
Fees earned by referring business to someone
Referral fees
The return of a portion of a payment received by a vendor to another individual involved in the vendor’s getting some business, especially when part of a secret agreement
Kickbacks
Determining if a licensee’s efforts were instrumental in leading to the sale of real estate and is therefore generally entitled to a commission
Procuring cause
What is the traditional test for procuring cause (aka being entitled to commission)?
Finding a buyer who is ready, willing, and able to meet the seller’s terms
What is the responsibility of the Equal Employment Opportunity Commission (EEOC)?
Responsible for enforcing federal laws that make it illegal to discriminate against a job applicant or employee because of the person’s race, color, religion, sex (including pregnancy), national origin, age (40+ y/o), disability or genetic information
What is the Uniform Commercial Code (UCC)?
Uniform act (proposed set of laws) that most states have adopted to govern commercial transactions of moveable, personal property
