Real Estate Practice

Question 1

Independent contractor

Answer 1

A licensee sponsored by a broker who is not considered an employee. There must be a written agreement, the independent contractor must be licensed and payment is on the basis of performance, not number of hours worked

Question 2

Prima Facie evidence

Answer 2

Evidence so strong at the party is guilty; no further investigation is necessary

Question 3

Title VIII of the Civil Rights Act of 1968

Answer 3

Part of the Federal Fair Housing Act - prohibits discrimination based on race, color, religion or national origin, sex, familial status or handicap

Question 4

Blockbusting

Answer 4

Causing panic selling by homeowners; also called panic peddling

Question 5

Familial status

Answer 5

A minor living with a parent or guardian; also called family composition

Question 6

Brokerage

Answer 6

The overall real estate business – bringing parties together and completing transactions

Question 7

Conversion

Answer 7

The illegal act of spending commingled funds for broker expenses

Question 8

Steering

Answer 8

Taking buyers to or away from any neighborhood based on any of the protected categories under Fair Housing - race, color, religion, national origin, sex, familial status or handicap - also called channeling

Question 9

Commingling

Answer 9

The illegal act of mixing broker funds with client funds

Question 10

Handicapped

Answer 10

Mental or physical impairment-includes recovering drug users, alcoholics and HIV/AIDS victims

Question 11

Escrow account

Answer 11

An account set up for the purpose of holding funds - also called trust account, impound account and reserve account

Question 12

Civil rights act of 1866

Answer 12

A law prohibiting discrimination based on color; no exceptions or exceptions

Question 13

Americans with disabilities act - ADA

Answer 13

Federal law passed to promote accessibility for those with special needs; it prohibits discrimination against those with disabilities