PSI Broker Exam Prep: Practice of Real Estate. Top Questions and answers. Graded A+

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PSI Broker Exam Prep: Practice of Real Estate. Top Questions and answers. Graded A+ Escrow funds (earnest money) "_____" don't belong to the seller, but instead should be kept in an escrow/trust... account until all contractual conditions have been met. Redlining 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, figuratively drawing a "red line" around an area to indicate an unwillingness to lend or insure homes in that area 00:1801:23 reverse redlining the practice of charging non-white borrowers higher fees or interest rates may be referred to a Blockbusting the act of inducing property sales by threatening that the changing demographics or the entry of a minority resident will decrease values. Licensees who engage in this behavior for their own profit are guilty of violating fair housing laws. Steering the act of guiding prospective buyer/tenants to or away from a location based on their membership in a protected class. Licensees who engage in this practice are guilty of a fair housing violation. Americans with Disabilities Act of 1990 prohibits protected class-based discrimination in the delivery of commercial and public programs, services, and activities. The Housing for Older Persons Act of 1995 provided exceptions for housing specifically designed for seniors. The exception allows those who live in senior developments in which at least 80% of the units are occupied by at least one person who is 55 or older to discriminate on the basis of age Puffery Statement that appears to a reasonable person as an exaggeration that wouldn't be relied on. "_____" is permissible (though perhaps not wise). Misrepresentation A statement, photo, or ad that a reasonable buyer would consider to be reliable. "_____", even when unintentional, can lead to a voidable contract Negligent misrepresentation A statement made by a person who should have known it to be false; becomes fraud when it's intentional. intentional misrepresentation Omission of a material fact is considered "_____" Price fixing involves 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. 00:0401:23 Market allocation involves an agreement between brokers to divide up the market and then refrain from competing for business. Tie-in arrangements include providing a service dependent on the customer/client obtaining (or not obtaining) another service from a specific provider Group boycotting is an agreement between two or more parties who conspire to not do business with a particular person or company. per se violation e antitrust violation is one in which the competing firms agreed to violate antitrust laws. A "_____" violation means that authorities don't need to make any additional inquiries about the violation to impose penalties. unauthorized practice of law Acting outside the scope of your license by offering legal advice is "_____" and may result in you losing your license Escrow agents "______" oversee trust or escrow account money Real estate escrow accounts "______" hold money on behalf of others. This includes buyers' earnest money deposits, rental security deposits, and any other funds being held in trust. Earnest money funds "_____" must be deposited into the proper trust account after the seller accepts the purchase offer and according to the timeline established by the state. Fair housing laws "_____" are designed to protect citizens from discrimination The Office of Fair Housing and Equal Opportunity "______", which is a part of the Department of Housing and Urban Development (HUD), enforces federal fair housing laws Race, color, religion, sex, disability, familial status, and national origin. Federal laws outline seven protected classes: "_______" Some courts have upheld that discrimination based on sexual identity is protected under the prohibition of discrimination based on sex. Civil Rights Act of 1866 prohibits housing discrimination based on race or color. There are no exemptions under this law. It is never legal to discriminate on the basis of race. This act protects the rights of U.S. citizens to buy, sell, convey, inherit, and possess property Housing and Community Development Act added sex to the list of protected classes Equal Credit Opportunity Act of 1974 Federal act which prohibits discrimination in financing, based on race, age, sex, or marital status. Fair Housing Amendments Act of 1988 Expansion of the Fair Housing Act to include families with children and those with physical or mental disabilities. Annie and George have been saving and are finally ready to purchase their first home for their family (including their two toddlers). They want to make an offer on a sweet little bungalow in a quiet neighborhood. If the sellers are represented by a real estate licensee, which situation would be a violation of fair housing laws? Their offer is rejected because the seller knows the neighbors don’t like children. Two competing firms are found guilty of illegal market allocation. Which of the following scenarios must be true? The two firms have agreed not to compete in one another’s markets. Kiley Ann is thrilled to have her real estate license and to be hired on at New Beginnings Brokerage. She’s not positive about Luis, her employing broker, though. He seems a little sketchy. For example, when she looks at her independent contractor agreement, it says that she’s not entitled to unemployment insurance and has to pay her own income taxes. What should she do? Review the requirements for independent contractors and be prepared to pay her own income tax and unemployment insurance. Greta is working with agent Brandon to sell some property. Nelson represents the buyer, Rigby. Of these four parties, who will pay the earnest money? Rigby When real estate licensee Brian discovered that real estate licensee Arnold was using a "Choose Your Neighbor" letter to market a property without also listing the property in the MLS, in the local paper, or even putting a for sale sign in the yard, what charge could he bring against Arnold to the National Association of REALTORS®? A charge of agreeing to discriminate by limiting access to the property In order for her house to accommodate her inability to hear, Angela has made a request for the house to be equipped with a doorbell that also alerts occupant [Show More]

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