Michigan Fair Housing Laws and Real Estate Regulations, Exams of Nursing

Download Michigan Fair Housing Laws and Real Estate Regulations and more Exams Nursing in PDF only on Docsity! PSI National Exam Land Division Act-Public Act 591 (Disclosure of Private Road) - correct answer ✔✔The intention of the act is to regulate division of land in the state in order to promote public health, safety, and general welfare. Michigan Fair Housing - correct answer ✔✔Michigan fair housing laws are largely similar to federal laws. At the state level, you need to be familiar with the Elliot-Larsen and the Persons with Disabilities Civil Rights acts. Elliot Larsen Civil Rights Act defines several key terms - correct answer ✔✔Real property, Real estate transaction, Housing accommodation, Real estate broker or salesperson. Michigan Civil Rights Commission - correct answer ✔✔Investigates alleged discrimination and secures the equal protection of civil rights. Under state law, any person who is believed to be the victim of discriminatory practices can take any of the following actions within 180 days of the discriminatory activity: - correct answer ✔✔- File a complaint with the Michigan Civil Rights Commission - File a complaint with local commission -File a private civil lawsuit in Michigan circuit court. Federal complaints of discriminations must be filed within - correct answer ✔✔1 year If the Michigan Civil Rights Commission finds that a violation has occurred, it can: - correct answer ✔✔- Issue a cease-and-desist order for the guilty party to stop engaging in discriminatory practice - Require the guilty party to: Proceed with the final sale or rental of the property, Pay any profits to the injured party, Pay damages and reasonable attorney's fees to the complainant , Pay a civil fine = fines are $10,000 for the first violation, $25,000 for a second violation within a five-year period, and $50,000 for a third violation within a seven-year period. Persons with Disabilities Civil Rights Act - correct answer ✔✔Specific to housing, disability is a physical or mental condition resulting from disease, injury, birth, or functional disorder that substantially limits one or more major life activities and is unrelated to the individual's ability to acquire, rent, or maintain property. Landlord Tenant Relationship Act - correct answer ✔✔The purpose of this act is to regulate the landlord- tenant relationship related to rentals, including lease termination and security deposits. Lease Termination - correct answer ✔✔If a tenant has occupied a premises for at least 13 months, the rental agreement can allow a tenant to terminate the lease with a 60-day written notice to the landlord if any of the following is true: - The tenant becomes eligible to take possession of a subsidized rental in senior citizen housing. - The tenant becomes incapable of living independently, as certified by a physician's notarized statement Security Deposit - correct answer ✔✔Landlords can require security deposits, but the amount can't exceed one-and-a-half months' rent. Truth in Renting Act - correct answer ✔✔The purpose of this act is to regulate residential lease agreements by requiring the inclusion of certain clauses and disclosures or prohibiting certain clauses from inclusion. State Transfer Tax - correct answer ✔✔A state transfer tax can be imposed when title to real property in Michigan in conveyed (or transferred). Transfer taxes don't apply to leases or conveyance of personal property. State Transfer Tax - correct answer ✔✔Generally, Michigan transfer taxes are seller's obligation. Transfer taxes are based on the sales price (or consideration, are used in the law) of the property.A portion of the transfer taxes collected goes to the state and a portion to the county where the property is located. Except from the tax are: - correct answer ✔✔- Transfers from spouses creating or terminating tenants by the entirety. - Transfers to the owner's child or grandchild (biological, step, or adopted) - Transfers due to court judgements The board must meet as often as necessary to fulfill its duties - correct answer ✔✔but no less than twice per year. A majority of members (at least five) must be present to have a quorum. Members can't vote by proxy. Complaints for violations of real estate laws are filed with - correct answer ✔✔the department using a Statement of Complaint form. Complaints can be filed by - correct answer ✔✔any person (including consumers or other licensees) or entity (including the board, the department, or the attorney general). Complaints must be filed within - correct answer ✔✔18 months of the alleged violation or the date the real estate transaction completed. Upon complaint receipt, - correct answer ✔✔the department immediately opens a correspondence file and provides written acknowledgment to the complainant within 15 days. If the complaint is related to a licensing law or regulation violation, the department's investigative unit will begin an investigation. During the course of the investigation (complaint), - correct answer ✔✔the department can ask the attorney general to petition the court for a subpoena to require any person to appear before the department, or for documents or other records relevant to the investigation Within 30 days of complaint receipt, the investigative unit must provide the department director with a status report. The director can provide an extension if needed. - correct answer ✔✔If the report finds no evidence that a violation occurred, the complaint can be closed and the reason for closing the complaint provided to the complainant and respondent. If additional information is provided, the complaint may be reopened. If the report finds evidence that a violation occurred, the department or attorney general can issue a formal complaint, cease and desist order, notice of summary suspension, or citation. At any point during the investigation up until the point a formal complaint is issued (which can be done if there's evidence of a violation), the department can bring the two parties together for an informal conference to attempt to resolve the issue and reach a settlement or agreement.The conference may be attended by a member of the board. - correct answer ✔✔The conference may be attended by a member of the board. Possible results of the conference include settlement, consent order, waiver, default, or other method of settlement. A settlement can include license revocation, suspension, or limitation, censure, probation, restitution, or penalty. The board may reject the settlement and move the complaint to a contested case hearing. A notice of summary suspension can be issued if the department believes there to be a threat to public health, safety, or welfare. - correct answer ✔✔Licensees can't practice real estate while their license is suspended. The licensee may petition the department to remove the suspension. If the licensee does, the department must immediately schedule a hearing on the matter. An administrative law hearings examiner can relieve the licensee of the suspension if there's no evidence that the licensee poses an imminent threat. Everything that goes on as part of this hearing becomes part of the original complaint record. A cease and desist order can be issued to stop a licensee from committing a violation. - correct answer ✔✔The recipient can request a hearing with the department within 30 days of the order. If the licensee violates the department's cease and desist order, the attorney general can apply for an order from the state circuit court to either temporarily or permanently refrain from committing further violations of the order. A cease and desist order is - correct answer ✔✔basically telling a person to stop performing a certain act (in other words, stop committing this violation). If the person holds an active real estate license, he or she can keep practicing real estate. A notice of summary suspension, however, is a license suspension. The person must stop all acts related to the practice of real estate. If a formal complaint is issued, the department sends notice to the complainant and respondent. - correct answer ✔✔sends notice to the complainant and respondent. The respondent has 15 days to decide whether or not to negotiate a settlement, demonstrate compliance, or proceed to a contested hearing. If the respondent fails to reply within the allowed 15 days the formal complaint will proceed to a contested hearing. An administrative law examiner presides over contested case hearings and will determine whether a violation occurred. The examiner issues a hearing report, which may include recommended penalties, to the department and board. - correct answer ✔✔The department and board must accept the examiner's findings of facts and conclusions of law. In other words, if the examiner finds a violation didn't occur, then the board must accept this as fact. A copy of the report must be provided to the parties in the case. Within 60 days of receiving the report, the board must meet to determine penalties. The board can request transcripts of the contested case hearing and if it does, it must meet to determine penalties within 60 days of transcript receipt. Any member who attended an informal conference related to the complaint can't participate in decisions related to penalties. If the board fails to act within the required timeframe, the director can determine a penalty and issue a final order. The attorney general can intervene and prosecute cases. This doesn't prevent the department from bringing civil, criminal, or administrative actions. The department may seek other resolution techniques, such as mediation. If a person is caught practicing a regulated profession (such as real estate) without a license, it's a misdemeanor offense - correct answer ✔✔First-time violations carry a $500 fine and/or 90 days imprisonment. Subsequent violations have a penalty of $1,000 and/or one year imprisonment. The following violations may carry other penalties: - correct answer ✔✔Deceitful or fraudulent actions in order to obtain a license Deceitful, dishonest, or fraudulent business practices Violation of real estate conduct rules Lack of good moral character Gross negligence False advertising Incompetence General rule violations Failure to appear when subpoenaed Failure to comply with previous penalties (such as a citation or final order) Knowingly aiding an unlicensed person in business practice For any of these violations, one or more of the following penalties can be assessed: - correct answer ✔✔License limitation License suspension License denial or denial of license renewal License revocation Administrative fine of as much as $10,000, payable to the department Censure Probation Restitution If restitution must be made, the individual's license will be suspended until that is done. Reviewing the salesperson's activities and practices Reviewing salesperson's reports Analyzing and providing guidance related to the salesperson's performance Providing written policies and procedures to the salesperson What is the goal of the Real Estate Settlement Procedures Act (RESPA)? - correct answer ✔✔To protect consumers from increased settlement costs due to illegal kickbacks and hidden fees What real estate transactions are covered by RESPA? - correct answer ✔✔Federally involved residential loans, including refinances, home equity loans, lines of credit, and first and second mortgages What is found on a closing statement? - correct answer ✔✔A reconciliation of each party's financial obligations and includes the parties' debits and credits What is a debit on a closing statement? - correct answer ✔✔A charge (an amount a party has to pay) What is a credit on a closing statement? - correct answer ✔✔An amount in the party's favor—an amount a party has already paid, an amount that must be reimbursed, or an amount that is promised Who typically pays escrow fees in a real estate transaction? - correct answer ✔✔These are generally split between the buyer and seller. How are security deposits received by a seller accounted for at closing? - correct answer ✔✔They go to the buyer as a credit. What is a proration? - correct answer ✔✔A proportional calculation based on who (buyer or seller) actually owes an expense for a given period of time Which lien takes priority over all other lien types? - correct answer ✔✔Property taxes (if homeowners don't pay their property taxes, they can lose their properties) How would a municipality enforce a tax lien? - correct answer ✔✔Through a tax sale What is an "in rem" action? - correct answer ✔✔A lien against the property, not its owner. An example would be a foreclosure process on a property tax lien. What is escrow? - correct answer ✔✔A neutral third party that often provides settlement services to parties in a real estate transaction What are escrow instructions? - correct answer ✔✔The written conditions for delivery of the instruments of an escrow from one party to another What is the purpose of a special tax assessment? - correct answer ✔✔