Practice of Real Estate

A mortgage ad states 'Only 5% down and payments from $1,950 per month.' Which advertising concept explains why extra federal credit disclosures are now required?

A sales team uses a team name in social media ads, but the ad still must clearly identify the supervising brokerage as required. What advertising concept is involved?

An agent tells a seller that the listing ad will say 'Won't last long -- priced below market!' The seller asks whether this constitutes illegal advertising. What is the BEST answer?

A licensee runs a Facebook ad that says 'Charming 3-bedroom home, great schools nearby.' No credit terms or brokerage name appears. Which advertising issue is MOST clearly present?

An agent describes a property in an ad as 'the best home in the city with guaranteed appreciation.' The first part of that statement is opinion, while the second part is a factual claim. Which advertising concept distinguishes between the two?

Which term best matches the following definition? Specific advertising terms, such as the amount of down payment or payment size, that trigger additional credit disclosures in mortgage advertising.

A new agent creates a social media post about a listing but only includes the agent's personal name without mentioning the brokerage. A colleague warns that the post could violate advertising rules. Why is the colleague concerned?

Which item is NOT generally acceptable in a real-estate ad if it creates a misleading impression about who is advertising?

All of the following can trigger extra federal credit-ad disclosures EXCEPT

A mortgage ad includes a monthly payment amount. What disclosure must the advertiser generally be prepared to add under federal credit-ad rules?

All of the following are advertising-regulation concepts EXCEPT

A broker's ad states that a property has '4 bedrooms and a newly renovated kitchen.' In reality, the kitchen renovation was cosmetic paint only and the plumbing and electrical remain original. This ad MOST likely violates which advertising principle?

Which term best matches the following definition? Advertising by a sales team that must still include any brokerage identification required by law.

A mortgage lender's newspaper ad reads 'Low interest rates available!' without mentioning any specific rate, payment amount, or down payment. Does this ad trigger Regulation Z disclosure requirements?

A broker's website advertisement for a residential property states '3.5% down, 360 monthly payments of $1,875.' Under Regulation Z, what additional disclosure is now triggered?

A lender advertises '0% down payment on VA loans.' Because this ad names a specific down-payment amount, which Regulation Z requirement is triggered?

A broker advertises a property and states that the seller will pay $5,000 toward the buyer's closing costs. The ad also includes the monthly payment amount. Under Regulation Z, the broker must now also include which of the following?

A real estate team called 'The Premier Group' places an Instagram ad for a listing. The ad shows the team name and logo but does not mention the brokerage with which the team is affiliated. Which advertising violation has occurred?

A broker prepares an online ad for a listing and makes sure the ad is accurate, not deceptive, and properly identifies the brokerage. What principle is the broker following?

A licensee posts an online listing ad but leaves out the brokerage name and gives the impression the property is for sale by owner. What kind of ad is this?

An MLS requires all participating brokers to offer a minimum cooperating broker compensation of 2.5% or the listing will not be accepted into the system. What antitrust concern does this policy raise?

Two brokerages agree that one will take only the north side of town and the other will take only the south side. What antitrust violation is this?

At a local real estate association meeting, two competing brokers discuss how they each independently set their commission rates. One broker mentions a 5% rate and the other charges 6%. Neither agrees to match the other's rate. Has an antitrust violation occurred?

Several competing brokers agree that none of them will charge less than 6% on residential listings. What antitrust violation does this describe?

Two competing brokerages agree that each will refer commercial clients to the other and neither will compete for the other's commercial customers. What is this an example of?

Which practice is NOT a lawful way for competitors to handle commission decisions?

Three brokerages in a metropolitan area agree that Firm A will handle only commercial properties, Firm B will handle only residential, and Firm C will handle only land. What antitrust violation does this arrangement describe?

A seller asks a broker why the commission is 6%. The broker replies, 'That is the standard rate everyone charges in this area.' What potential antitrust concern does this statement raise?

Brokers from several firms informally agree over dinner that they will no longer offer buyer rebates in their market. What type of antitrust violation is this?

All of the following are classic antitrust violations in real estate brokerage EXCEPT

A brokerage requires all its buyers to use the firm's affiliated title company as a condition of representation. No other title company may be used. What antitrust concern does this raise?

A broker tells a seller that the property will be listed only if the seller also agrees to use the broker's affiliated moving company. What antitrust issue is raised?

Several established brokerages agree among themselves to refuse any cooperation with a newly opened flat-fee listing service. What antitrust violation has occurred?

Which term best matches the following definition? An antitrust violation in which competitors agree not to deal with a particular person or business.

A property management company requires all tenants to purchase renter's insurance through the company's own affiliated insurance agency. What antitrust issue could this create?

In a brokerage workshop in Charlotte, a case study involving Cameron Lopez and Skyler Simmons matches the following definition: An antitrust violation in which competitors agree not to deal with a particular person or business. Which term best fits the case study?

The Sherman Antitrust Act provides for which type of damages when a violation is proven in a private lawsuit?

A broker tells a prospective seller, 'Our commission is 6%, and it's fully negotiable -- that's the rate our brokerage has chosen independently.' Which statement BEST describes why this approach is acceptable under antitrust law?

A group of brokers at a conference complain about a new online brokerage that offers deeply discounted commission rates. They agree among themselves that none of their firms will show that online brokerage's listings. What is the MOST serious antitrust violation?

Several brokerages agree not to show listings offered by a discount firm in order to pressure it to raise prices. What antitrust violation does this describe?

A supervising broker discovers that an agent has been collecting commission checks directly from clients instead of routing them through the brokerage. What is the primary concern?

A broker asks whether a certain action might be legal but still violate the profession's standards of honesty and fair dealing. What body of rules is the broker asking about?

A brokerage's policy manual requires all agents to follow the company's code of conduct, which sets ethical standards above the minimum legal requirements. An agent objects, claiming only the law matters. What is the BEST response?

A brokerage requires set office hours, closely directs the worker's daily tasks, and pays a salary through payroll withholding. What status best describes that worker?

A broker has an existing business relationship with a past client. The broker calls the past client to discuss a new listing, even though the client's number is on the National Do Not Call Registry. Is this call permitted?

Two agents from different brokerages both claim to be the procuring cause of a sale. What factor is MOST important in determining which agent is the procuring cause?

A licensee sets their own hours, pays their own expenses, and receives compensation based on production rather than a salary. For tax purposes, the IRS requires a written agreement confirming the licensee will not be treated as an employee. What classification does this describe?

Which term best matches the following definition? The compensation paid to a property manager, often calculated as a percentage of collected rent or as a flat fee.

A broker receives a $5,000 earnest money deposit from a buyer. Where must the broker deposit these funds?

A property management firm is hired to manage a 50-unit apartment building. The management agreement specifies compensation of 8% of collected rents plus a flat $500 monthly administrative fee. What type of compensation is this?

Which item is NOT a common compliance issue in brokerage marketing or communications?

A brokerage sends a mass email marketing campaign promoting new listings but does not include a physical mailing address or an unsubscribe option. Which federal law has the brokerage violated?

A property sells for $275,000 at a commission rate of 5.5%. What is the total commission?

A broker mixes a small amount of personal funds into the trust account to keep it from falling below the minimum bank balance requirement. What violation, if any, has occurred?

All of the following are brokerage-operations concepts EXCEPT

Which term best matches the following definition? The broker whose efforts set in motion an uninterrupted chain of events leading to the completed transaction.

A broker is building a prospecting plan and wants to avoid calling consumers whose numbers are on the federal registry for unsolicited sales calls. Which rule is relevant?

A brokerage sends promotional emails and must include a functioning unsubscribe method and accurate header information. Which federal law governs those requirements?

A property sells for $260,000 with a 6% commission split equally between the listing broker and the selling broker. The listing agent receives 55% of the listing broker's share. How much does the listing agent earn?

A broker deposits a tenant's security deposit into the brokerage's general operating account and uses some of the funds to pay office rent. What violation has occurred?

A real estate agent learns that a buyer is Muslim and then avoids showing properties near churches, assuming the buyer would not want to live there. This conduct MOST likely violates the Fair Housing Act on the basis of what protected class?

A broker tells homeowners they should sell quickly because members of a minority group are moving into the area and property values will supposedly fall. What illegal practice is this?

All of the following are fair-housing concepts or violations EXCEPT

A housing complex is advertised as '55 and older community.' Under the Fair Housing Act, this community MAY legally exclude families with children if it meets which requirement?

A homeowner's association forbids the installation of a wheelchair ramp at the front entrance of a condominium unit. The unit owner has a mobility disability. Under the Fair Housing Act, the HOA is MOST likely required to allow the ramp as what?

A property owner who lives in a single-family home and sells it without using a broker or discriminatory advertising claims the transaction is exempt from the Fair Housing Act. Which statement is MOST accurate?

Which item is NOT a protected-class issue under the federal Fair Housing Act?

A complaint is filed with HUD alleging a fair housing violation. HUD investigates and finds reasonable cause. If the parties do not settle, what happens next?

Which term best matches the following definition? The fair-housing protection that generally prohibits discrimination against households with children under 18 or people securing custody of such children.

A tenant with a visual impairment requests that the landlord allow an emotional support animal in a no-pets building. Under fair housing law, this request is BEST described as a request for what?

A lender or insurer avoids doing business in a neighborhood primarily because of the residents' protected characteristics rather than legitimate risk factors. What unfair-housing-related practice is this?

A broker is training new agents on the federal law that bans discrimination in housing based on race, color, religion, sex, disability, familial status, and national origin. Which law is being discussed?

A tenant who uses a wheelchair asks to install a ramp at the entry to a rental house. What fair-housing concept most directly applies?

An agent only shows listings in predominantly Hispanic neighborhoods to Hispanic buyers, believing they will be 'more comfortable' there. What fair housing violation is this?

A licensee shows families with children only homes in one part of town because the agent thinks those neighborhoods are 'better for kids.' What fair-housing violation does this describe?

A landlord refuses to rent an apartment to a couple because they have a 3-year-old child. The building is a standard 20-unit complex, not a qualifying senior-housing community. Which protected class has the landlord discriminated against?

An insurance company charges higher premiums for homeowner's insurance in certain ZIP codes that have predominantly minority populations, even though the actual risk factors do not justify the higher rates. What unlawful practice does this describe?

A landlord tells a tenant with a hearing impairment that an assistive doorbell system cannot be installed because it would alter the property. The tenant offers to pay for the installation and restore the property upon move-out. Under fair housing law, the landlord is MOST likely required to do what?

An agent distributes flyers door-to-door in a neighborhood stating, 'Home values are dropping because of the new families moving in from overseas. Sell now before it's too late!' What TWO fair housing violations could this conduct involve?

All of the following may require changes to how housing is offered or managed for a person with a disability EXCEPT

Mississippi fair housing law:

There are eight protected classes in Texas Fair Housing. What are they?

All exemplify lawful private real estate controls except:

A housing discrimination charge must be filed within how long in Rhode Island?

Steering in Michigan real estate is:

Michigan fair housing complaints can be filed with:

An Oregon licensee violating fair housing law may face:

Fair housing complaints in Mississippi can be filed with:

Lender refusing loans in minority neighborhoods:

A Maine licensee violating fair housing may face:

Maine Human Rights Act adds which protected classes?

Under Pennsylvania fair housing law, discrimination complaints must be filed within:

Maine fair housing covers:

Fair housing complaints in Louisiana can be filed with:

Under Michigan fair housing law, refusing to rent to someone based on their age is:

Fair housing complaints in Massachusetts can be filed with:

Steering in Arizona real estate is:

Under Massachusetts law, refusing to rent to someone with a housing voucher is:

Colorado's fair housing law adds which protected classes beyond federal law?

Fair housing complaints in OK can be filed with: