Fair Housing Act and Mortgage Fraud, Exams of Advanced Education

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Post License Course (Barney Fletcher)

Exam Questions and Answers

Within the first five years around ___% of agents leave the real estate business - Answer- 80-90% For buyers what are the five steps of the pre-qualification process - Answer- 1. Urgency

2. Motivation
3. Financial Ability
4. Wants and Needs
5. Agency For sellers what are the five steps to the first appointment - Answer- 1. Urgency
6. Motivation
7. Concerns
8. Expectations
9. Hesitations A person who may be willing to engage in a real estate transaction - Answer- Prospect A person who is willing to perhaps have a conversation but has no real desire to engage in a real estate transactions - Answer- Suspect In determining whether a person is a suspect or a prospect we must consider - Answer- Urgency and motivation When setting goals, its important they be - Answer- Specific Measurable Attainable Realistic Timely Most common type of target market is a particular neighborhood of homes - Answer- Farming A ______ analysis can be helpful in analyzing your strengths and weaknesses, which can sometimes help you pick the target market that is best for you - Answer- SWOT

The primary objective of any type of real estate prospecting is to - Answer- Generate an appointment The ratio that is computed by dividing the number of homes sold in a year by the total number of homes in the farms - Answer- Turnover ratio A method of prospecting that will involve the telephone, but only as part of a mix of different types of contacts - Answer- Circle prospecting A ______ agent has more control than a _____ agent - Answer- Listing/selling This involves only one appointment with the prospective sellers. Licensee makes the presentation, show the recommended price through CMA and try to get sellers to sign the listing contract - Answer- 1-step listing presentation What is the best way to establish a personal brand in real estate - Answer- To develop a good reputation Which of the following choices is the most common way buyers find a house they purchased - Answer- Internet What is the most important part of your "brand" in your real estate career - Answer- Your reputation When a real estate licensee focuses his or her prospecting efforts on a particular neighborhood or type of buyer is the licensee's - Answer- Target market As a real estate agent your primary product is - Answer- Your contacts When the number of listings by a particular firm is divided by the total number of listings in that neighborhood, the result is the - Answer- Market share Which of the following is the best way to ask for a referral - Answer- Who do you know who might be looking to buy or sell a house The process of ensuring that the interior and exterior of a home are as attractive as possible is known as - Answer- Staging The types of media used to generate new business is known as the - Answer- Promotional mix When doing the initial tour of a house before making a listing presentation, one goal should be to - Answer- Get the sellers to view the property from the standpoint of a typical buyers rather than a seller

A buyer has made an offer on a seller's house. The offer gives the buyer 10 days to have a licensed home inspection of the property and to cancel the offer if the inspection reveals significant necessary repairs unknown to the buyer. This is an example of - Answer- Contingency clause Which of the following types of sales of a personal residence would require a third-party approval before the sale could be closed - Answer- A bankruptcy, a divorce, or a short sale What is the most important factor in qualifying a prospective buyer - Answer- Whether the prospect is financially qualified to purchase a home In deterring whether or not to issue a pre-approval letter, the lender would consider - Answer- Principal, interest, property taxes, and insurance What is the purpose of using an assumptive close - Answer- To make it easier for the buyer to say yes If the buyer and seller agreed that the buyer would purchase the patio furniture as part of the contract, this would appear in which section of the Purchase and Sale agreement

• Answer- Special Stipulations A loan point is - Answer- One percent of the loan amount Assuming the buyers ride in your car, the time spent in the car can be put in good use by - Answer- Discussing the positive features of the neighborhood what is the biggest difference between traditional telemarketing and circle prospecting?
• Answer- circle prospecting requires. follow-up under what circumstance should a real estate licensee use a 1-step listing presentation
• Answer- if the homeowner insists on it what is the most common reason why new licensees hate making cold calls on the telephone - Answer- fear of rejection which of the following contact methods is most likely to get people to remember you - Answer- send a handwritten thank you note after a phone conversation when answering a phone call, which of the following choices would be a key objective - Answer- to not only give information, but to get information from the caller as well what type of software is designed specifically to avoid "one and done" prospecting - Answer- customer relationship management (CRM)

when trying to get a listing from a seller whose previous listing was expired, which of the following choices are recommended to solicit a listing contract from that seller - Answer- provide a free service, such as analysis of current market conditions situations where on party represents another party - Answer- law of agency the laws regarding agency come from what three sources in the US - Answer- common law, statutory law, and administrative or regulatory law stems from British laws which applied to the colonies before the Revolutionary War (precedents) - Answer- Common law laws passed by the state legislature or the Congress and signed by the governor. - Answer- statutory laws refers to the rules and regulations adopted by various regulatory bodies - Answer- Administrative or regulatory law the person who hires the agent to represent them in a transaction - Answer- principal the person hired to represent the principal - Answer- agent in real estate practice, the ______ is considered the agent - Answer- broker represents the principal in all aspects of the principal's dealings, - Answer- universal agent less authority than a universal agent but may represent the principal in an ongoing series of continuous events, usually in one general field of endeavor. In real estate, property managers - Answer- general agent represents the principal in one specific transaction. - Answer- special agent acts as agent for an agent and has the same duties and obligations as the agent - Answer- subagent a position of trust and must put the interest of his client (Steve) above those of all others, including and especially those of himself. - Answer- fiduciary obligations This means that the agent is required to act in the best interest of the client and must not put anyone else's interests ahead of those of the client. - Answer- loyalty Agents are only required to follow the ________instructions of their client. - Answer- lawful

In simple terms, this means that the licensee must perform the duties of the agent as would a competent real estate professional and without any negligence. - Answer- reasonable care and diligence If you are showing property you are listing and tell a prospective buyer that "...this property is the best for you," the relationship created could be interpreted as: - Answer- implied agency Under common law, a broker who has a listing is in a position of trust and must put his or her interests above those of all others. This describes what type of obligation? - Answer- fiduciary What is the greatest risk in a case where a buyer's agent submits offers on several homes simultaneously? - Answer-. The buyer could be contractually obligated to buy more than one house and could face damages if defaulting on any of the contracts. The duty of an agent to follow the instructions of the client applies to each of the following instructions, EXCEPT: - Answer-. "Do not reveal to any buyers that my roof leaks." The state law that specifies which types of contracts must be in writing to be enforceable is called the: - Answer- Statute of Frauds. What offers must a listing broker present to a seller? - Answer- All offers received prior to closing. Which of the following actions by a licensee who is working with a consumer as a non- client could cause the creation of an agency by implication? a. Filling in the blanks on a pre-printed offer to purchase real property. b. Showing homes to a consumer which meet the consumer's specified needs and desires. c. Making arrangements for a home inspection to take place. d. Making a recommendation about whether to make or accept a counteroffer. - Answer- Making a recommendation about whether to make or accept a counteroffer. A seller contacted 3 brokers and asked each to suggest the listing price for his property. Broker A said $78,000. Broker B said $79,000. Broker C said $91,000. The seller listed with Broker C and the house later sold for $76,000. Broker C is guilty of violating which of his or her agency responsibilities? - Answer- reasonable care Broker Bob has a buyer agency agreement with Buyer Bill. The agreement calls for Buyer Bill to pay a 3% commission upon closing of the purchase of a home. Buyer Bill purchases Seller Sally's house. Seller Sally gave an exclusive right to sell listing agreement to Broker Betty and agreed to pay a 6% commission. In a typical transaction

of this nature, how much commission will Buyer Bill have to pay to Broker Bob? - Answer- nothing A real estate licensee represents himself to a customer as the agent of a seller without the knowledge of the seller. The customer makes an offer on the property, which the licensee then presents to the seller. The seller accepts the offer and agrees to pay a commission to the licensee. This is an example of: - Answer- agency by ratification What is the purpose or effect of the equal dignities rule? - Answer- To require that if the underlying contract must be in writing, any related contracts must be in writing. Which of the following clauses in an offer to purchase a property would be most attractive to a buyer who makes several simultaneous offers to purchase a residence when the buyer can only purchase one of them? - Answer-. An unrestricted right to terminate the contract for a limited period of time. REALTORS® may represent the seller/landlord and buyer/tenant in the same transaction only after - Answer- full disclosure to and with informed consent of both parties. When acting as listing brokers, REALTORS® shall continue to submit to the seller/landlord all offers and counter-offers until - Answer- closing or execution of a lease unless the seller/landlord has waived this obligation in writing. When entering into listing contracts, REALTORS® must advise sellers/landlords of: - Answer- 1) the REALTOR®'s company policies regarding cooperation and the amount(s) of any compensation that will be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities;

2. the fact that buyer/tenant agents or brokers, even if compensated by listing brokers, or by sellers/landlords may represent the interests of buyers/tenants; and
3. any potential for listing brokers to act as disclosed dual agents, e.g., buyer/tenant agents. (Adopted 1/93, Renumbered 1/98, Amended 1/03) REALTOR® A has a listing on a seller's home and the seller has accepted an offer. The offer is contingent upon the sale of the buyer's current home. REALTOR® B has a buyer who has made an offer. Under the Code of Ethics, what should listing REALTOR® A do? a. Ignore REALTOR® B's offer since the seller's home is already under contract. b. Reveal the existence of the contract but not the contingency. c. Reveal the existence of the contract and the contingency. d. Present the second offer to the seller without disclosing the existence of the offer or the contingency. Feedback - Answer- c. Reveal the existence of the contract and the contingency. A REALTOR® has a listing on a client's house. The sellers are getting a divorce and need to sell the home quickly. Under what circumstances can the REALTOR® reveal

this fact to a potential buyer? - Answer- d. Only after getting informed consent from the seller. Act was designed to ensure that persons of any race could sign and enforce contracts and could buy and sell and lease property. - Answer- Civil Rights act of 1866 The Sherman Antitrust Act prohibits each of the following activities, EXCEPT: Select one: a. Commingling. b. Price fixing. c. Boycotts. d. Tying arrangements - Answer- a. commingling A listing agreement may be terminated by: Select one: a. The seller b. The buyer's broker c. The salesperson that obtained the listing d. Death of the salesperson - Answer- a. the seller Brokers must hold their client's funds in a/an: Select one: a. Office safe. b. Savings account. c. Trust or escrow account. d. Special account managed by the Board of Realtors. - Answer- c. trust or escrow account A broker has the buyer's earnest money deposit deposited in an escrow account. The amount of the deposit exceeds the amount of the broker's commission for the sale. The broker may remove his commission on this sale ONLY: Select one: a. When the buyer moves into the property. b. When the seller moves out of the property. c. When the closing is completed. d. Whenever the seller says it is ok to do so. - Answer- c. When the closing is completed. When legal dual agency exists, the agent is required to maintain the confidences of: Select one: a. The buyer only. b. Both the seller and the buyer. c. The seller only. d. Neither the buyer nor the seller. - Answer- b. Both the seller and the buyer.

Fred and Wilma gave a listing contract to Broker Bob to sell their home and both signed the contract. Prior to receiving any offers, Fred died in an unfortunate bowling accident. What is the effect of Fred's death on the listing contract? Select one: a. The contract remains in effect. b. The contract would be automatically terminated by law. c. The contract would be in default. d. The contract would only be enforceable in a community property state. - Answer- a. The contract remains in effect. Funds in the escrow account may be dispersed for any of the following reasons EXCEPT when: Select one: a. All principals to the transaction agree in writing to the disposition. b. A court orders disbursement of the funds. c. The seller demands forfeiture of the earnest money deposit. d. The transaction is consummated. - Answer- c. The seller demands forfeiture of the earnest money deposit. The death of a seller would terminate which of the following contracts? Select one: a. A purchase contract. b. A listing contract. c. Both of the above. d. None of the above. - Answer- b. A listing contract A broker could return the buyer's deposit from the escrow account back to the buyer in which of the following cases? Select one: a. The offer expired without any acceptance by the seller. b. The seller rejected the buyer's offer. c. The transaction was cancelled because of the buyer's inability to meet the financing contingency and the seller consented to returning the deposit. d. Each of the above. - Answer- d. Each of the above. The maximum fine for an individual for a violation of the Sherman Antitrust Act is: Select one: a. $0, since individuals are not subject to the Act - only companies are subject to the Act. b. $250,000. c. $500,000. d. $1,000,000 - Answer- d. $1,000, Who is required to comply with the Civil Rights Act of 1866? - Answer- d. Everyone, without exception.

Larry Licensee runs an ad for one of his listings. The ad contains the phrase "nearby St. Andrew Roman Catholic Church." This would be considered: - Answer- a. Acceptable advertising if true; A disparate impact case has gone to trial. The plaintiffs have shown that a particular policy has had a disparate impact on a particular protected class. However, the defendant has shown that the policy serves a legitimate business necessity. What will be the next step? - Answer- c. The plaintiff will have to show that other policies might have served the same business necessity with less disparate impact on protected classes; Adeline is selling her own home as a For Sale By Owner (FSBO). On Sunday, a full price offer is made by an Asian couple. Adeline refuses the offer made by the couple. On Monday, Adeline accepts an offer, $4000 below the asking price from a Caucasian family. Has Adeline violated any laws and if so which one? - Answer- Adeline has violated the Civil Rights Act of 1866; One of the recent emerging issues in Fair Housing complaints has been the issue of excluding applicants on the basis of having a record of criminal convictions. Why is this the case? a. There is a new protected class of people with criminal convictions; b. African-Americans and Latinos have a disproportionately higher rate of having criminal conviction records than Caucasians. c. There is an increasing interest in prison reform; d. Due to provisions of the Dodd-Frank Act. - Answer- b. African-Americans and Latinos have a disproportionately higher rate of having criminal conviction records than Caucasians. The purpose of the Fair Housing Amendments Act of 1988 was to: Select one: a. Add two new protected classes; b. Repeal the Civil Rights Act of 1866; c. Remove two protected classes; d. Establish complaint procedures. - Answer- a. Add two new protected classes; Recent years have seen increasing complaints centering on fair housing problems having to do with REO properties. What is typically the complaint? Select one: a. Excessive numbers of foreclosures in minority neighborhoods; b. Failure to prevent squatters from taking over the property; c. REOs located in African-American and Latino neighborhoods receive less upkeep and maintenance than those in Caucasian neighborhoods; d. It is too difficult to sell REO properties in minority neighborhoods. - Answer- c. REOs located in African-American and Latino neighborhoods receive less upkeep and maintenance than those in Caucasian neighborhoods;

Which of the following phrases in a rental advertisement would be deemed discriminatory against the disabled? Select one: a. Attractive independent living; b. Walking distance to shopping; c. Accessible for the disabled; d. None of the above. Feedback - Answer- a. Attractive independent living; An apartment complex has a "no pets" policy. Mary is a blind person who applies to rent a unit, but she wants to have her certified guide dog live in the apartment with her. This request: Select one: a. Can only be granted if the landlord agrees to remove "no pets" policy; b. Should be considered "reasonable accommodation;" c. Should be considered a "reasonable modification;" d. Cannot be granted. - Answer- b. Should be considered "reasonable accommodation;" In 1968 the Supreme court ruled in the Jones vs. Mayer Co. case. The courts' decision upheld the law which provides protection on the basis of: Select one: a. Sexual discrimination; b. Racial discrimination; c. Discrimination on the basis of national origin d. Religious discrimination - Answer- b. Racial discrimination; Which of the following choices would be an example of a member of the "familial status" protected class under the Fair Housing Amendments Act? Select one: a. Any married couple; b. A single mother with a 19-year old child; c. A married couple with two grown children; d. A pregnant woman. - Answer- d. A pregnant woman. In what circumstance is the owner required to pay any costs associated with a reasonable accommodation? Select one: a. In no cases; b. In all cases; c. Only if the owner receives operating subsidies from the government, such as Section 8 vouchers; d. Only if the property was built after 1991. - Answer- b. In all cases; The 1988 Amendment to the Federal Fair Housing Act, Title VIII, declared it unlawful to discriminate: Select one:

a. Against households with children under 18 years of age; b. On the basis of age; c. Because of sexual orientation; d. On the basis of the sex of the buyer or renter - Answer- Against households with children under 18 years of age; Which of the following documents may include a question about the applicant's race? Select one: a. A mortgage application only; b. A rental application only; c. Both a mortgage application and a rental application; d. Neither a mortgage application nor a rental application. - Answer- a. A mortgage application only; If a prospective buyer (who is of a minority group) asks an agent to show her properties, the agent should: Select one: a. Show her properties in areas that are predominantly of the same minority group; b. Refer her to an agent in the firm of the same minority; c. Advise her that the firm does not handle people of her minority group and refer her to another brokerage d. Show her any property for which she is financially qualified - Answer- d. Show her any property for which she is financially qualified A victim of discriminatory conduct files a lawsuit and wins the case. Part of the judgment in the case is for emotional distress and loss of a housing opportunity. This part of the judgment is called: Select one: a. Consequential damages; b. Punitive damages; c. Injunctive relief; d. Declaratory relief. - Answer- a. Consequential damages; When HUD sends a complaint to a respondent, that respondent has how many days to submit an answer to the complaint? Select one: a. 5 days; b. 10 days; c. 15 days; d. 30 days; - Answer- b. 10 days; If a dark-skinned African-American refused to rent an apartment house to a lighter- skinned African-American, that would be considered: Select one: a. Discrimination on the basis of race only; b. Discrimination on the basis of color only;

c. Discrimination on the basis of both race and color; d. Not to be a violation of the Fair Housing Act. - Answer- b. Discrimination on the basis of color only; Each of the following would be considered a "person with a disability," EXCEPT: Select one: a. An individual who currently uses illegal drugs; b. A person with a past history of mental impairment; c. A person with a learning disability; d. A person who has difficulty walking. - Answer- a. An individual who currently uses illegal drugs; If a landlord or property manager treats Caucasian tenants better than Latino tenants, that would be an example of: Select one: a. Overt evidence of disparate treatment; b. Comparative evidence of disparate treatment; c. Evidence of disparate impact; d. Both A and B above. Feedback - Answer- b. Comparative evidence of disparate treatment; A fair housing complaint on the basis of excluding those with a record of criminal conviction may be based on allegations of: Select one: a. Disparate impact; b. Disparate treatment; c. Either of the above; d. None of the above. - Answer- Either of the above; Information gathered because of the Home Mortgage Disclosure Act would most likely be used for which type of discrimination lawsuit? Select one: a. Overt evidence of disparate treatment; b. Comparative evidence of the disparate treatment; c. Either of the above; d. Evidence of disparate impact. - Answer- d. Evidence of disparate impact. If the Administrative Law Judge finds that a landlord had violated the Fair Housing Act in the current case, and has been found guilty of two other violations in the past seven years in other cases, the respondent could be ordered to pay a maximum fine of approximately: Select one: a. $16,000; b. $20,000; c. $50,000;

d. $100,000. - Answer- A person who had previously violated the Act two or more times in the past seven years could be fined up to $100,554. In what circumstance is the owner required to pay any costs associated with a reasonable accommodation? Select one: a. In no cases; b. In all cases; c. Only if the owner receives operating subsidies from the government, such as Section 8 vouchers; d. Only if the property was built after 1991. - Answer- b. In all cases; Recent years have seen increasing complaints centering on fair housing problems having to do with REO properties. What is typically the complaint? Select one: a. Excessive numbers of foreclosures in minority neighborhoods; b. Failure to prevent squatters from taking over the property; c. REOs located in African-American and Latino neighborhoods receive less upkeep and maintenance than those in Caucasian neighborhoods; d. It is too difficult to sell REO properties in minority neighborhoods. - Answer- c. REOs located in African-American and Latino neighborhoods receive less upkeep and maintenance than those in Caucasian neighborhoods; What is the biggest difference between a lawsuit regarding a disparate impact lawsuit for discrimination and a disparate treatment lawsuit? Select one: a. The plaintiff in a disparate impact case does not have to prove a discriminatory intent; b. The plaintiff in a disparate treatment case does not have to prove a discriminatory intent; c. Disparate treatment cases are generally more complicated than disparate impact cases; d. Disparate impact cases are easier to win than disparate treatment cases. - Answer- The plaintiff in a disparate impact case does not have to prove a discriminatory intent; When a tenant has been granted permissions to make a reasonable modification, the tenant is generally expected to restore the property to its original condition if: Select one: a. Only if the modification is made to the exterior of the property; b. Only if the modification is made to the interior of the property; c. In all cases; d. In no cases. - Answer- b. Only if the modification is made to the interior of the property; An owner of a single-family home may sell or rent it without being subject to the Fair Housing Act as long as he or she does not use the services of a licensed broker and he or she:

Select one: a. Does not own more than three houses at one time; b. Does not own more than four houses at one time; c. Has never owned more than three houses; d. Is not a licensee. - Answer- a. Does not own more than three houses at one time; Oak Gardens is a luxury apartment complex that has a gym open to its residents. Which of the following policies regarding the gym would most likely be found to be enforceable by the courts? Select one: a. No children below the age of 14 may enter the gym. b. No children below the age of 18 may enter the gym. c. No children below the age of 14 may enter the gym without being supervised by a parent or other adult relative. d. No children below the age of 14 may enter the gym without being supervised by a responsible adult. - Answer- No children below the age of 14 may enter the gym without being supervised by a responsible adult. What is the first step in a successful disparate impact fair housing complaint based on criminal convictions? Select one: a. To show an intent to discriminate. b. To show that the policy does not have a legitimate, necessary business purpose; c. To show that a different policy could avoid the disparate impact; d. To show that the burden of the criminal conviction policy puts a heavier burden on members of a protected class. - Answer- d. To show that the burden of the criminal conviction policy puts a heavier burden on members of a protected class. In a fair housing investigation, "testers" are most often used to find: Select one: a. Overt evidence of disparate treatment; b. Comparative evidence of disparate treatment; c. Evidence of disparate impact; d. Both A and B above. - Answer- b. Comparative evidence of disparate treatment; When must the owner of an apartment complex grant a reasonable accommodation to a disabled tenant? Select one: a. When the disability is readily apparent and the accommodation is not an undue burden on the owner; b. Whenever the tenant requests one; c. When the tenant requests one and the request does not place an undue burden on the owner; d. At no time, since reasonable accommodations are always voluntary. Feedback - Answer- When the tenant requests one and the request does not place an undue burden on the owner;

A disparate impact case has gone to trial. The plaintiffs have shown that a particular policy has had a disparate impact on a particular protected class. However, the defendant has shown that the policy serves a legitimate business necessity. What will be the next step? Select one: a. The case will be dismissed. b. The plaintiff will have to show that the policy involved a discriminatory intent on the part of the defendant; c. The plaintiff will have to show that other policies might have served the same business necessity with less disparate impact on protected classes; d. The defendant will have to prove that there was no discriminatory intent when it set the policy. - Answer- The plaintiff will have to show that other policies might have served the same business necessity with less disparate impact on protected classes; Claims filed with HUD for alleged Fair Housing violations must be filed within: Select one: a. 90 days; b. 180 days; c. 1 year; d. 2 years. - Answer- c. 1 year; Which of the following documents may include a question about the applicant's race? Select one: a. A mortgage application only; b. A rental application only; c. Both a mortgage application and a rental application; d. Neither a mortgage application nor a rental application. - Answer- a. A mortgage application only; A property owner creates the following policy: There shall be no "loud and boisterous activity on the premises, music played loud and/or with too much bass, a continuous or excessive number of guests, noisy children, or vehicles with very loud exhaust system." Is this policy likely to be found to be enforceable? Select one: a. No, primarily because of the reference to noisy children; b. Yes, it is reasonable and serves a legitimate business necessity; c. No, primarily because of the reference to loud music; d. No, primarily because of the reference to automobiles. Feedback - Answer- a. No, primarily because of the reference to noisy children; Sally owned a rental home which she has never occupied. Under the federal Fair Housing Act, under what circumstance might she be able to sell this rental property and be exempt from the Fair Housing Act? Select one: a. As long as she uses the services of a real estate licensee;

b. As long as she discloses the exemption from the Fair Housing Act in any advertisement; c. Under no circumstances; d. As long as she does not sell more than one such property in any two-year period. - Answer- As long as she does not sell more than one such property in any two-year period. A victim of discriminatory conduct files a lawsuit and wins the case. Part of the judgment in the case is for emotional distress and loss of a housing opportunity. This part of the judgment is called: Select one: a. Consequential damages; b. Punitive damages; c. Injunctive relief; d. Declaratory relief. Feedback - Answer- a. Consequential damages; In past years, fair housing complaints involving insurance companies typically involved complaints regarding: Select one: a. Steering; b. Redlining; c. Blockbusting; d. Discriminatory pricing. - Answer- b. Redlining; A real estate licensee who works only with buyers has told a Latino buyer that the local school district is very good but offers no English as a Second Language program. The same licensee tells Caucasian buyers that the local school district is great. This licensee has: Select one: a. Done nothing wrong; b. Engaged in steering; c. Engaged in redlining; d. Engaged in blockbusting. - Answer- b. Engaged in steering; A couple has rented a one-bedroom apartment. After a new baby arrived, the landlord filed an eviction notice on the couple because the landlord's policy is that the occupancy limit is two people per bedroom. Which of the following statements is the most likely result of a fair housing lawsuit filed by the tenants? Select one: a. The eviction would likely be upheld due to the HUD Keating Memo which suggests occupancy limits of 2 persons per bedroom. b. The eviction would likely be overturned because of the age of the child. c. The eviction would likely be upheld if the occupancy limit was clearly disclosed in the rental agreement or lease.

d. The eviction would be overturned as it is unconstitutional. - Answer- b. The eviction would likely be overturned because of the age of the child. Which of the following statements is/are true regarding the addition of sexual orientation and the gender identity as members of a protected class? Select one: a. It is based on a Supreme Court decision and a Presidential Executive Order; b. It is based on the protected class of sex; c. Both of the above; d. None of the above. - Answer- c. Both of the above; The burden of proof falls on the plaintiff in which of the following aspects of a disparate impact case? I. Proving that the policy has a disparate impact; II. Proving that the policy serves a business necessity. III. Proving that an alternative policy could achieve the business necessity without a disparate impact Select one: a. I only; b. I & II; c. I & III; d. II & III. - Answer- c. I & III; A young couple comes into a Georgia real estate brokerage office and tells an agent that they are looking for a home in a particular price range. Both spouses are 25 years old. The agent who greeted them at the door tells them that the firm normally doesn't work with people of their age group, but in this case the agent will make an exception. This scenario is an example of: Select one: a. Overt evidence of disparate treatment; b. Comparative evidence of disparate treatment; c. Evidence of disparate impact; d. Both A and B above. - Answer- Overt evidence of disparate treatment; Which of the following protected classes were added in the Fair Housing Amendments Act of 1988? Select one: a. Disability; b. Familial status; c. Both of the above; d. None of the above. - Answer- c. Both of the above; Larry Licensee runs an ad for one of his listings. The ad contains the phrase "nearby St. Andrew Roman Catholic Church." This would be considered: Select one: a. Acceptable advertising if true; b. A violation of the separation of church and state; c. A violation of the Civil Rights Act of 1866;

d. The use of a "trigger term" under the Fair Housing Act of 1968. - Answer- d. The use of a "trigger term" under the Fair Housing Act of 1968. When HUD sends a complaint to a respondent, that respondent has how many days to submit an answer to the complaint? Select one: a. 5 days; b. 10 days; c. 15 days; d. 30 days; - Answer- b. 10 days; If a seller is held liable for the actions of a real estate licensee representing that seller, that would be an example of: Select one: a. Vicarious liability; b. Indirect liability; c. Subsidiary liability; d. Employment liability. - Answer- a. Vicarious liability; What is the next step if a lawsuit shows conclusive evidence that a particular policy of a lender or municipal government has had a disparate impact on a protected class? Select one: a. The judge then determines the monetary damages to be paid to the plaintiffs. b. The case is then referred to HUD or the DOJ for criminal prosecution; c. The plaintiff will then have to show that the policy is illegal; d. The defendant will then have to show that the policy serves some business necessity

• Answer- d. The defendant will then have to show that the policy serves some business necessity A disabled tenant makes a request for a reasonable accommodation which the property owner believes to be unreasonable. What further obligation does the owner have to the tenant at that point? Select one: a. To investigate the possibility of a different accommodation that would achieve the same objective but create less burden for the property owner; b. To submit to mediation; c. To submit the request to a court for further consideration; d. None whatsoever. Feedback - Answer- a. To investigate the possibility of a different accommodation that would achieve the same objective but create less burden for the property owner; In today's economy, which of the following factors have most frequently been involved in fair housing complaints against insurance companies? Select one: a. Insurance companies have denied coverage or charged higher premiums to property owners who accept housing choice vouchers;

b. Connecticut law which requires property owners to accept housing choice vouchers; c. Both of the above; d. None of the above. - Answer- c. Both of the above; Which of the following words or phrases in an advertisement would be considered a violation of the Fair Housing Act? Select one: a. Walking distance to public transit; b. Exclusive neighborhood; c. Desirable neighborhood; d. Mother-in-law suite. - Answer- b. Exclusive neighborhood; In 1968 the Supreme court ruled in the Jones vs. Mayer Co. case. The courts' decision upheld the law which provides protection on the basis of: Select one: a. Sexual discrimination; b. Racial discrimination; c. Discrimination on the basis of national origin d. Religious discrimination - Answer- b. Racial discrimination; Which of the following phrases in a rental advertisement would be deemed discriminatory against the disabled? Select one: a. Attractive independent living; b. Walking distance to shopping; c. Accessible for the disabled; d. None of the above. - Answer- a. Attractive independent living Adeline is selling her own home as a For Sale By Owner (FSBO). On Sunday, a full price offer is made by an Asian couple. Adeline refuses the offer made by the couple. On Monday, Adeline accepts an offer, $4000 below the asking price from a Caucasian family. Has Adeline violated any laws and if so which one? Select one: a. There is no violation because homeowners selling their own property are exempt from Federal Fair Housing laws; b. Adeline has violated the Federal Fair Housing Act of 1968; c. Adeline has violated the Civil Rights Act of 1866; d. Adeline has violated the state license laws. - Answer- c. Adeline has violated the Civil Rights Act of 1866; The 1988 Amendment to the Federal Fair Housing Act, Title VIII, declared it unlawful to discriminate: Select one: a. Against households with children under 18 years of age; b. On the basis of age; c. Because of sexual orientation;

d. On the basis of the sex of the buyer or renter - Answer- a. Against households with children under 18 years of age; According to the State Building Code Occupancy Standards, if a couple had triplets, the minimum square footage of a bedroom for the triplets would be: Select one: a. 70 square feet; b. 120 square feet; c. 150 square feet; d. 210 square feet. - Answer- c. 150 square feet; The Fair Housing Act is part of what larger law? Select one: a. The Civil Rights Act of 1964; b. The Civil Rights Act of 1866; c. The Civil Rights Act of 1968; d. The Civil Rights Act of 1974. - Answer- c. The Civil Rights Act of 1968; An apartment complex owner has a rule regarding the use of the pool which states "Children must leave the pool by 6:30 pm and must be supervised by a resident relative at all times when using the pool." Which of the following statements is correct about whether this policy would constitute discrimination on the basis of familial status? Select one: a. Since safety is a valid concern, this policy would be permissible. b. This policy would be a violation, solely because of the requirement that the supervising adult must be a relative; c. This policy would be a violation, solely because of the time restriction; d. This policy would be a violation because of both the time restriction and the requirement that the supervising adult must be a relative. Feedback - Answer- his policy would be a violation because of both the time restriction and the requirement that the supervising adult must be a relative. The law that states that it is illegal to refuse to sign a contract because the other party is not a Caucasian is: Select one: a. The Civil Rights Act of 1866; b. The Fair Housing Act; c. The Fair Housing Amendments Act of 1988; d. The Gramm-Leach-Bliley Act. - Answer- a. The Civil Rights Act of 1866; Which of the following property owners would be exempt from the prohibition against discrimination in the Civil Rights Act of 1866? Select one: a. The owner of a single-family residence who owns 3 or less such residences and does not use a licensed real estate agent; b. A religious organization that gives housing preferences to its members;

c. Both of these choices; d. None of these choices. - Answer- d. None of these choices. What is the recommended practice for a licensee to follow when asked about the local school districts? Select one: a. Act as a resource rather than an advisor; b. Give an honest opinion about each school district; c. Give no information about school districts; d. Recommend the best school district in the area. - Answer- a. Act as a resource rather than an advisor; In today's economy, what is the most common type of discrimination complaint filed against municipalities? Select one: a. Restrictive zoning that attempts to exclude African-American people from moving into the city; b. Unreasonable building codes; c. Unreasonable occupancy limits; d. Restrictions against group homes for the disabled in residential neighborhoods. - Answer- Restrictions against group homes for the disabled in residential neighborhoods. Sally owned a rental home which she has never occupied. Under the federal Fair Housing Act, under what circumstance might she be able to sell this rental property and be exempt from the Fair Housing Act? Select one: a. As long as she uses the services of a real estate licensee; b. As long as she discloses the exemption from the Fair Housing Act in any advertisement; c. Under no circumstances; d. As long as she does not sell more than one such property in any two-year period. - Answer- d. As long as she does not sell more than one such property in any two-year period. What determines whether a person is a member of the familial status protected class? Select one: a. Whether a couple is married; b. Whether a person has (or will soon have) custody of a child under the age of 18; c. Whether the household includes at least three people; d. All of the above. - Answer- b. Whether a person has (or will soon have) custody of a child under the age of 18; In what circumstance is the owner required to pay any costs associated with a reasonable accommodation? Select one: a. In no cases;

b. In all cases; c. Only if the owner receives operating subsidies from the government, such as Section 8 vouchers; d. Only if the property was built after 1991. - Answer- b. In all cases; Which of the following statements is/are true regarding the addition of sexual orientation and the gender identity as members of a protected class? Select one: a. It is based on a Supreme Court decision and a Presidential Executive Order; b. It is based on the protected class of sex; c. Both of the above; d. None of the above. - Answer- c. Both of the above; A fair housing complaint on the basis of excluding those with a record of criminal conviction may be based on allegations of: Select one: a. Disparate impact; b. Disparate treatment; c. Either of the above; d. None of the above. - Answer- c. Either of the above; A lawsuit has been filed alleging discrimination in housing against a person based on a disability. The defendant has argued that the plaintiff is not disabled under the definition of a disability in the Fair Housing Act. The court considered this argument and issued an order stating that the individual is indeed disabled under the definition of a disability in the Act. This court order is an example of: Select one: a. Injunctive relief; b. Punitive relief; c. Consequential relief; d. Declaratory relief. - Answer- d. Declaratory relief. Which of the following choices would be an example of a member of the "familial status" protected class under the Fair Housing Amendments Act? Select one: a. Any married couple; b. A single mother with a 19-year old child; c. A married couple with two grown children; d. A pregnant woman. - Answer- d. A pregnant woman. If a landlord or property manager treats Caucasian tenants better than Latino tenants, that would be an example of: Select one: a. Overt evidence of disparate treatment; b. Comparative evidence of disparate treatment; c. Evidence of disparate impact;

d. Both A and B above. - Answer- b. Comparative evidence of disparate treatment; One of the recommended fair housing practices is that real estate brokerage firms should review and evaluate the location of homes shown and sold. What is the fair housing purpose for doing this? Select one: a. To determine if steering is going on; b. To comply with the requirement to report this data to the federal government; c. Both of the above; d. None of the above. Feedback - Answer- a. To determine if steering is going on; Information gathered because of the Home Mortgage Disclosure Act would most likely be used for which type of discrimination lawsuit? Select one: a. Overt evidence of disparate treatment; b. Comparative evidence of the disparate treatment; c. Either of the above; d. Evidence of disparate impact. Feedback - Answer- d. Evidence of disparate impact. What is the biggest difference between a lawsuit regarding a disparate impact lawsuit for discrimination and a disparate treatment lawsuit? Select one: a. The plaintiff in a disparate impact case does not have to prove a discriminatory intent; b. The plaintiff in a disparate treatment case does not have to prove a discriminatory intent; c. Disparate treatment cases are generally more complicated than disparate impact cases; d. Disparate impact cases are easier to win than disparate treatment cases. - Answer- a. The plaintiff in a disparate impact case does not have to prove a discriminatory intent; The concept of "preying on the powerless" is seen most vividly in: Select one: a. Fraud for profit; b. Subprime loans; c. Property flipping; d. Silent seconds. - Answer- b. Subprime loans; An unethical loan originator directs his marketing efforts at finding poor or elderly customers who are not sophisticated. This would be an example of: Select one: a. Redlining; b. Capping; c. Steering; d. Targeting.

Feedback - Answer- d. Targeting. One of the most common forms of Mortgage Fraud in the US. is equity skimming. It includes all of the following, EXCEPT: Select one: a. Homeowners who are behind on payments being targeted by criminals; b. Homeowners facing foreclosure that need to sell their homes quickly c. A promise made by skimmer that will take over payments, but never pays; d. Homeowners buying less house than they can afford - Answer- Equity skimming involves getting a homeowner to sign over his or her current home, not buying a new home. The correct answer is: Homeowners buying less house than they can afford _____ is the process of attempting to make money earned illegally appear to be legitimate. Select one: a. Money laundering; b. Misrepresentation; c. Duress; d. Flipping. - Answer- a. Money laundering; If a lender advertised a loan with an exceptionally low teaser rate without disclosing that the rate only applies for the first month of the loan, the advertisement: Select one: a. Would be legal, but unethical as bait and switch advertising; b. Would be both illegal and unethical as bait and switch advertising; c. Would be legal, but unethical; d. Would be ethical, but not legal. - Answer- The correct answer is: Would be both illegal and unethical as bait and switch advertising; What is the primary method by which the SAFE Act promotes ethical mortgage lending and origination practices? Select one: a. By requiring a license, which can be suspended or revoked; b. By giving clear ethical guidancel c. By specifying underwriting standards; d. By requiring HUD-approved loan counseling. - Answer- a. By requiring a license, which can be suspended or revoked; Which statement is FALSE regarding duress? Duress: Select one: a. Can take any number of forms; b. May force a person to do something against his or her will; c. Duress is caused by a party who benefits under the contract; d. Covers situations of forcing someone's assent by legal means - Answer- d. Covers situations of forcing someone's assent by legal means

Which of the following statements is the most accurate statement regarding the difference between ethical standards and legal standards: Select one: a. Ethical standards guide us on what we should (or should not) do; b. Legal standards guide us on what we should (or should not) do; c. There is no relationship between legal standards and ethical standards; d. Legal standards and ethical standards are the same. - Answer- a. Ethical standards guide us on what we should (or should not) do; Each of the following items on a loan application is a possible red flag for mortgage fraud, EXCEPT: Select one: a. The employer's address is a PO Box; b. The accumulation of assets seems excessive in relation to income; c. Same telephone number for the borrower and the employer; d. A family with small children is purchasing a larger house. - Answer- A young family purchasing a larger house would not be a red flag. If the house being purchased seems to small for the number of occupants, that might be a red flag. The correct answer is: A family with small children is purchasing a larger house. Which of the following rules is NOT used by consumers to reduce the chances of identity fraud? Select one: a. Know what is in the credit file; b. Monitor credit file so notification occurs when credit inquiry made; c. Sign all new credit cards upon receipt; d. Shredding is not needed for records of account details. - Answer- The false statement is that shredding is not needed. The correct answer is: Shredding is not needed for records of account details. Which statement best describes duress? Select one: a. Duress is when a person is asked to do something willingly; b. If duress was caused by party gaining from contract, court will not recognize it; c. Duress covers situations that involve forcing someone's assent by illegal threats; d. Duress includes falsifying a required document. - Answer- c. Duress covers situations that involve forcing someone's assent by illegal threats; If a property has been sold multiple times in the past several years, what type of mortgage fraud might that indicate: Select one: a. Fraud for property; b. Equity skimming; c. Property flipping; d. Cash back on closing. - Answer- c. Property flipping;