Practice of Real Estate Flashcards
A salesperson qualified a minority couple with two children and defined their price range as between $110,000 and $120,000 for the three-bedroom house they wanted. They asked to look at two listings in a nonminority neighborhood. The salesperson did not show them the properties because they were priced under $90,000 and had only two small bedrooms. Did the salesperson act appropriately and why or why not?
No, because it is appropriate to show any property for which the buyer is qualified.
A landlord may legally refuse to rent to a prospective tenant if the tenant
has ever been convicted of selling illegal drugs.
The Civil Rights Act of 1866 prohibits any type of discrimination based on
race.
An equal housing opportunity notice MUST be
displayed in the brokerage office.
Antitrust laws prohibit competing brokers from all of the following EXCEPT
receiving compensation from both the buyer and the seller.
A broker represents a group of investors who purchase single family residences when they can be found at very low prices. Their offers are typically made with $500 deposits and cash closings within 7 days of acceptance of the offers. When the last property closed, the investors suggested the broker keep the deposit money to be used for their next purchase, as yet not identified. What must the broker do with these deposit funds?
Return them to the purchasers.
A charge of violation of Federal Fair Housing laws can be heard by an administrative law judge within the Department of Housing and Urban Development (HUD) or by a Federal district court judge in Federal court. The advantage of a Federal court hearing to the complaining party is that
there is no dollar limit on damages paid.
Earnest money should be deposited into a trust account
in a timely manner, according to state laws.
Without checking the facts, a broker who is the seller’s agent tells a buyer that the property taxes in a particular neighborhood are among the lowest in the area. The buyer relies on the broker’s statement and makes an offer on a house in the neighborhood. Before closing, it is determined that the taxes are actually among the highest in the area. The buyer could seek to rescind the contract on the basis of
misrepresentation
A minority couple come to a salesperson looking for a house. The salesperson has some properties for which the couple qualify but avoids showing or mentioning these listings. Instead, the salesperson shows only properties in low-priced and integrated neighborhoods. This practice is known as
steering.
