Practice Of Real Estate

Question 1

Passed to increase housing opportunities
for people with disabilities and farnilíes
with children under 18 years old,The expansion included two new protected
classes under fair housing laws to prohibit the
discrimination based on handicap (disability) and
familial status. This act expanded the protections
previously listed by its predecessor, the Fair
Housing Act of 1968.

Answer 1

Fair Housing
Amendments Act
(FHAA)
of 1988

Question 2

An accommodation that is requested,by a qualified protected person that seeks a
property modification for their known physical
or mental limitation,For the accommodation to be reasonable, it
cannot impose an undue hardship on the housing
provider.

Answer 2

Reasonable
accommodation

Question 3

When a housing provider influences,a potential home buyer or residential
renter to purchase or renta certain property by
limiting the potential buyer’s or renter’s choice,Fair housing laws prohibit steering of families with
children under the age of 18. They also prohibit
steering potential home buyers or residential
renters based on any of the established,protected classes

Answer 3

Steering

Question 4

Makinga statement that presents,something as more marketable or appealing
than it actually is but cannot be objectively
determined,It is nota factual statement about the property.
For example, a broker can puff by saying “ This is the
best house on the market.” Although puffing may
be misleading at times, it does not concern factual
statements and therefore does not constitute a
misrepresentation.

Answer 4

Puffing

Question 5

•Real estate agent: has the required
qualifications (age, citizenship,
background check, education, and testing)
established by the state to facilitate the sale
and purchase of property on behalf of others

• Real estate broker: has gone further with the
education process and has earned a broker
license; brokers can also work for themselves,
as opposed to hanging their licenses under
larger brokerage firms

Answer 5

Real Estate Agent

VS

Real Estate Broker

Question 6

An agent or broker who has joined the National
Association of Realtors (NAR) and subscribes to
their strict code of ethics

Answer 6

Realtor

Question 7

A broker who has legally established a
brokerage firm and has real estate agents

Answer 7

Broker-In-Charge
(BIC)

Question 8

Refers to the primary actor (agent or
broker) whose actions resulted in the sale,

This actor is entitled to commission for their
role in the transaction. In some cases, disputes
can arise as to which agent is owed commission.
Procuring cause disputes are often resolved
through arbitration, but they can also be decided
in court.

Answer 8

Procuring cause

Question 9

Guarantees the broker or agent a commission even if the property listing expires or is canceled

Answer 9

Protection
clause

Question 10

A negotiated com mission paid to the
licensee through the proceeds of the closed transaction

Answer 10

Brokerage
fee

Question 11

A fee paid by the buyer to the brokerage upon signing the agency agreement,

Answer 11

Retainer fee

Question 12

A fee paid by the buyer to the brokerage
upon signing the agency agreement,

Answer 12

Service fee

Question 13

A fee that is earned by referring a client to another agent (the receiving agent) to service during a particular transaction,

Answer 13

Referral fee

Question 14

Passed by Congress in 1890 in an effort to ensure “healthy and free market competition”,

Answer 14

Sherman
Antitrust Act

Question 15

Occurs when there is collusion among
brokerages related to commissions or fees

Answer 15

Price
fixing

Question 16

Occurs when two or more brokerages agree not
to support a third party,

This practice is illegal under the Sherman
Antitrust Act.

Answer 16

Group
boycotting

Question 17

The practice of dividing customers using
an established metric (e.g., by zip code, street
boundaries, etc),This practice removes the ability of customers to

have true freedom of choice when selecting an
agent or property manager. It is prohibited by the
Sherman Antitrust Act.

Answer 17

Market
allocation

Question 18

The practice of conditioning one
transaction on the fulfillment of another,

This is illegal under the Sherman Antitrust
Act. For instance, if a brokerage has a parcel of
land for sale and a builder wants to buy it, the
brokerage will not be able to condition that sale
on the builder’s guarantee to list their future new
homes with that same brokerage.

Answer 18

Tie-in

Question 19

Under fair housing laws, which
of the following is NOT a protected,class?,

A. Race

B. Religion,

C. Occupation

,D. Familial status

Answer 19

C. Occupation

Question 20

20,Which statute expanded
civil rights into the housing
market?

A. Civil Rights Act of 1968,

B. Protected Persons Act of 1963

C. Civil Rights Act of 1958,

D. Fair Housing Act of 1966

Answer 20

A. Civil Rights Act of 1968,

Question 21

21),Who must abide by fair
housing
laws?

A. lender

B. broker

C. property leasing agent

D. All of the above

Answer 21

D. All of the above

Question 22

A local church provides housing
for its members. Who may the church
decline to rent housing to

A. A person from a foreign nation,

B. A married couple with three children

C. A single man with two children

D. All of the above

Answer 22

D. All of the above

Question 23

Which of the following is a
prohibited act under the Civil Rights
Act of 1968?

A. Puffing

B. Zoning,

C. Harassment

D. Escheat

Answer 23

C. Harassment