PSI Exam Prep: Practice of Real Estate Flashcards
Who can act like an escrow agent?
the broker,
a title company representative
or attorney
Federal laws outline seven protected classes
Race, color, religion, sex, disability, familial status, and national origin.
it prohibits housing discrimination based on race or color. There are no exemptions under this law. It is never legal to discriminate on the basis of race. This act protects the rights of U.S. citizens to buy, sell, convey, inherit, and possess property.
The Civil Rights Act of 1866
This act prohibits housing discrimination based on race, color, national origin, and religion.
Title VIII of the Civil Rights Act of 1968 is the Fair Housing Act
it added sex to the list of protected classes.
The Housing and Community Development Act of 1974
it requires lenders to give consumers equal access to credit. The act prohibits discrimination based on race, color, religion, national origin, sex, marital status, or age with respect to granting credit and requires lenders to respond to all loan applications within 30 days, giving reasons for any application rejections.
The Equal Credit Opportunity Act (ECOA) of 1974
it extended fair housing protection to cover familial status and disability and provides remedies to victims of housing discrimination. It requires that owners make reasonable accommodations to property rules, policies, and practices to provide persons with disabilities appropriate access.
The Fair Housing Amendments Act of 1988
FHAA
it is an illegal, discriminatory practice by lenders or insurance companies that refuse or limit business within specific geographic areas based on the demographics of the area rather than on the creditworthiness of the specific borrower.
Redlining
the practice of charging non-white borrowers higher fees or interest rates may be referred to
reverse redlining.
it is the act of inducing property sales by threatening that the changing demographics or the entry of a minority resident will decrease values. Licensees who engage in this behavior for their own profit are guilty of violating fair housing laws.
Blockbusting
it is the act of guiding prospective buyer/tenants to or away from a location based on their membership in a protected class. Licensees who engage in this practice are guilty of a fair housing violation.
Steering
it prohibits protected class-based discrimination in the delivery of commercial and public programs, services, and activities.
Title II of the Americans with Disabilities Act of 1990
What are some exceptions to Federally lawys?
Seniors of 55 and over, Mrs. Murphy exemption, Single-family housing sold or rented without a broker’s assistance, and religious organizations
Statement that appears to a reasonable person as an exaggeration that wouldn’t be relied on. it is permissible but not suggested.
Puffery
A statement, photo, or ad that a reasonable buyer would consider to be reliable and even when unintentional, can lead to a voidable contract.
Misrepresentation
A statement made by a person who should have known it to be false; becomes fraud when it’s intentional.
Negligent misrepresentation
Omission of a material fact is considered intentional misrepresentation.
Yes
it protects consumers from unfair and deceptive advertising and it pays particular attention to ads that make health and safety claims.
The Federal Trade Commission (FTC)
The FTC determines the severity of penalties based on the violation’s severity. Penalties range from
a cease-and-desist order (which becomes effective immediately) corrective advertising civil penalties consumer and other monetary remedies and informational remedies.
it is intended to protect consumers from unwanted telephone solicitations. The primary impact on licensees comes from the Do Not Call Registry (DNC). The act prohibits calls to consumers before 8 a.m. or after 9 p.m., anonymous and robo calls, and calls to cell phones.
The federal Telephone Consumer Protection Act (FTCPA), overseen by the Federal Communications Commission
Licensees may call consumers with whom they have had an established business relationship for
18 months after the last interaction
hose who violate the DNC may be subject to penalties in excess of
$40,000 per violation/separate call.
what does caveat emptor states means?
non-full disclosure states
Let the buyer beware = caveat emptor
its primary purpose is to prevent monopolies that would cause a restraint of trade.
The Sherman Act of 1890
it prohibits mergers that would result in a monopoly.
The Clayton Act supports the Sherman Act
it investigates antitrust violations and penalizes violators.
The Federal Trade Commission, created by the Federal Trade Commission Act
it involves an agreement (or collusion) between competitors (brokers) to fix contract terms, services, or products at a specific price or level, such as suggesting there’s a “standard” fee for broker compensation.
Price fixing
it involves an agreement between brokers to divide up the market and then refrain from competing for business.
Market allocation
it include providing a service dependent on the customer/client obtaining (or not obtaining) another service from a specific provider.
Tie-in arrangements
it is an agreement between two or more parties who conspire to not do business with a particular person or company.
Group boycotting
it is one in which the competing firms agreed to violate antitrust laws. it means that authorities don’t need to make any additional inquiries about the violation to impose penalties. The fact that collusion existed is enough.
A per se antitrust violation
Penalties for antitrust violations may be as much as
$1 million and 10 years in prison; for corporations, penalties may be as much as $100 million.
Brokerage firms found guilty of violations may be subject to
court-ordered supervision for up to 10 years.
it provided consumers with remedies if they became victims of discrimination in housing and also added familial status and disability to the list of protected classes.
Fair Housing Amendments Act of 1988
is Filling in the contract blanks considered practicing outside your expertise?
No
it included gender or a person’s sex in the list of protected classes.
Housing and Community Development Act of 1974
What does the Federal Trade Commission consider to be an unfair ad?
Any ad that is likely to mislead consumers acting reasonably under the circumstances
The Federal Trade Commission is concerned with all ad claims but is most likely to be most concerned with
Any ad that makes a health or safety claim or any claim that’s difficult for the consumer to evaluate
Which of the following strategies would help to make a “Choose Your Neighbor” marketing letter non-discriminatory in its effect?
Listing the property on the MLS
this act expressly prohibits collusive acts that result in an unreasonable restraint of trade or reduced competition.
The Sherman Antitrust Act of 1890
Who is responsible for ensuring accessibility requirements for a commercial property are met?
Property owners and property managers
The Controlling the Assault of Non-Solicited Pornography And Marketing Act of 2003,
CAN-SPAM
Which act created an agency to investigate antitrust practices?
Federal Trade Commission Act
What does the Federal Trade Commission consider to be an unfair ad?
Any ad or business practice that causes or is likely to cause injury is considered an unfair ad
Which agency is charged with enforcing fair housing laws and holding all parties accountable for compliance with these laws and regulations?
Office of Fair Housing and Equal Opportunity
When federal and/or state law interfere, which one should you use?
The more strict one
What form are independent contractors require to fill out?
W-9
What is true about existing building when ti comes to ADA regulations?
Existing buildings do not have strict regulations such as new construction
The Office of Fair Housing and Equal Opportunity is a part of which federal department?
HUD
