PSI Exam Prep: Practice of Real Estate Graded A

PSI Exam Prep: Practice of Real Estate Graded A The Office of Fair Housing and Equal Opportunity, which is a part of the___________________ enforces federal fair housing laws. Department of Housing and Urban Developm ...

PSI Exam Prep: Practice of Real Estate Graded A The Office of Fair Housing and Equal Opportunity, which is a part of the___________________ enforces federal fair housing laws. Department of Housing and Urban Development (HUD) Federal laws outline seven protected classes what are they? Race, color, religion, sex, disability, familial status, and national origin. Some courts have upheld that discrimination based on sexual identity is protected under the prohibition of discrimination based on sex. The Civil Rights Act of 1866 prohibits? housing discrimination based on race or color. Title VIII of the Civil Rights Act of 1968 is the_____________Act? Fair Housing Act. - This act prohibits housing discrimination based on race, color, national origin, and religion. Which act added to the list of protected classes? The Housing and Community Development Act of 1974 Which act requires lenders to give consumers equal access to credit? The Equal Credit Opportunity Act (ECOA) of 1974 Which act extended fair housing protection to cover familial status and disability and provides remedies to victims of housing discrimination? The Fair Housing Amendments Act of 1988 ___________________,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 - In another twist, the practice of charging non-white borrowers higher fees or interest rates may be referred to a reverse redlining. ____________________ is the act of inducing property sales by threatening that the changing demographics or the entry of a minority resident will decrease values. Blockbusting -Licensees who engage in this behavior for their own profit are guilty of violating fair housing laws. ____________________is the act of guiding prospective buyer/tenants to or away from a location based on their membership in a protected class. Steering -Licensees who engage in this practice are guilty of a fair housing violation. Landlords may refuse to rent to individuals on the basis of_________? creditworthiness. Which act 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 00:0200:58 What isa statement that appears to a reasonable person as an exaggeration that wouldn't be relied on? Puffery- Puffing is permissible (though perhaps not wise). A statement, photo, or ad that a reasonable buyer would consider to be reliable. Misrepresentation -even when unintentional, can lead to a voidable contract. A statement made by a person who should have known it to be false? Negligent misrepresentation -becomes fraud when it’s intentional. Omission of a material fact is considered? intentional misrepresentation. Which act protects consumers from unfair and deceptive advertising? The Federal Trade Commission Act Ads that are likely to mislead a reasonable consumer are called? Deceptive ads Ads that advertise any business practice or product that's likely to cause injury are called? Unfair ads Regarding Truth in Advertising, who determines the severity of penalties based on the violation's severity? FTC - Federal Trade Commission Which act is is intended to protect consumers from unwanted telephone solicitations? The federal Telephone Consumer Protection Act The Do Not Call Registry (DNC) requires licensees to check the DNC registry at least every _______days and drop any disconnected, registered, or reassigned phone numbers from their contact lists? 31 Days Licensees may call consumers with whom they have had an established business relationship for _____ months after the last interaction? 18 months Those who violate the DNC may be subject to penalties in excess of $_______________ per violation/separate call. $40,000 per violation/separate call. Acting outside the scope of your license by offering legal advice is called __________________and may result in you losing your license? unauthorized practice of law The Sherman Act's (1890) primary purpose is to? prevent monopolies that would cause a restraint of trade. The Clayton Act (1914) supports the Sherman Act by? prohibiting mergers that would result in a monopoly. The Federal Trade Commission, created by the Federal Trade Commission Act(1914), and investigates? antitrust violations and penalizes violators. 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 is called? Price fixing An agreement between brokers to divide up the market and then refrain from competing for business. is called? Market allocation Providing a service dependent on the customer/client obtaining (or not obtaining) another service from a specific provider is called? Tie-in arrangements An agreement between two or more parties who conspire to not do business with a particular person or company is called? Group boycotting A per se antitrust violation is? one in which the competing firms agreed to violate antitrust laws. 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. Sondra just purchased a condo on Maui. She plans to live there for four months each winter and rent it out the rest of the year. Which of the following is true regarding the Hawaii conveyance tax? The conveyance tax rate will be higher, and Sondra may have to pay the difference. -A slightly higher conveyance tax rate applies to transfers to non-owner-occupied buyers. Dinah is a licensee representing a buyer client. When she realizes that the seller and seller’s agent in the transaction are practicing subtle forms of discrimination against her client on the basis of his national origin, she asks them to stop. What consequence should she be prepared for? She may have to deal with ridicule or even violent behavior from the seller and the seller’s agent. -Although Dinah has done the right thing by standing up against discriminatory behavior, she should be prepared for possible retaliation from the seller and seller’s agent, such as ridicule or threats of violence. Which of the following would be outside the scope of the Hawaii Real Estate Commission? Issuing a cease and desist order to a licensee who is violating the law - The commission can suspend, fine, terminate, and revoke licenses, but it doesn’t have the authority to issue a cease and desist order. Co-ownership without inheritance rights is what kind of real property ownership? Joint tenancy - When a joint tenant dies, their interest automatically transfers to the surviving tenant(s) via the right of survivorship. Joint tenancy may not be inherited. A property management ______ establishes the agency relationship between the property manager and the property owner. Agreement - A property management agreement establishes the agency relationship between the property manager and the property owner. You can think of this as the job description for the property manager. Which of the following statements is true regarding RICO complaints? RICO encourages licensees to try open communication as a first step in conflict resolution. - RICO will first try to get the complainant to work something out with the licensee. RICO resolves approximately half of the complaints it receives at the intake level, without the necessity of a formal investigation. In the sales comparison approach, the appropriateness of the various comparable sales in relationship to the subject is considered in a process known as ______, where certain factors may be given more weight. Correlation - Through a correlation process, the most weight may be given to one or two of the sales that are presented, or equal weight may be given to all. Which of these items go into the seller’s credit column and the buyer’s debit column? Prepaids - Prepaid items—such as prepaid utilities—would be a seller credit and buyer debit. Douglas represented Wynn as she looked for a house. After an extensive search, Douglas realized that he could no longer work with Wynn for personal reasons. His representation of Wynn ended for which reason? Renunciation - Douglas would have to renounce this contract in order for it to terminate.