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33 Cards in this Set
- Front
- Back
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If the broker accepts earnest money or deposit and acts as an escrow agent, the money must be deposited __ _ ________ _____ ________ set up for this purpose. All client's funds can be kept in the same account as long as ___ _______ __ ___________
No commingling or conversion |
in a special trust account
written records are maintained |
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commingling and conversion:
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broker mixes client money with his funds, either business or personal. In conversion, a broker uses a client's money or commingled funds for his own purposes
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Conversion
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broker uses client's money or commingled funds for his own purposes
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_____________________ and _____________ will also have trust accounts for holding client funds
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Title companies
attorneys |
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Civil Rights Act Of 1866
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prohibits discrimination based on race and color. There are no exceptions or exemptions for this law
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Federal Fair Housing Act (known as the Title VIII of the Civil Rights Act of 1968) forbids:
A 1974 amendment added ___ as a protected category. ________________________ is not a protected category This act was amended in 1988 to include ______ ______________ ___ ___ _______________, and that amendment was enforceable in 1989 (family composition may be referred to as ___________ _________) |
discrimination on the basis of race, color, national origin, and religion
sex Sexual orientation family composition and the handicapped familial status |
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Familial status means:
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a minor living with a parent or guardian
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Handicapped means ___________________________.
____________ or _____________ and ____________ are included in the list. A handicapped tenant may modify an apartment to meet his needs, ______________________, but, must be willing to restore the apartment before moving out, ____________________________, if the landlord requires it. |
mental or physical impairment
alcoholics recovering drug users AIDS victims at his own expense again at his own expense |
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Violations include charging higher _______________, ________________ any one category from any other, or refusing to permit a tenant to _____________________.
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security deposits
segregating modify rental space |
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Age is not covered. This is to allow for _______________. In senior housing communities at least one person over the age of __ must be living in ____ of the units. Senior housing communities may refuse to sell or rent to those under __ years of age, or to families with children*
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senior housing
55 80% 55 (*discriminating against familiar status, only exception) |
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The law forbids discrimination and discriminatory practices in connection with the ________ or __________ of residential real estate not only by owners, but also by __________, ___________, ___________, __________, and ____ ________ organizations and services. A landlord can refuse to lease to a ____________ ____________ _________ ___ __ _ ________ __ ________ ___ _________. There is no federal standard for determining mental handicap
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LEASING
SELLING lenders investors builders brokers real estate mentally handicapped tenant who is a danger to himself and others |
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There are some exceptions to the rules, but Real Estate Licensees are
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NEVER exempt
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Exceptions to Federal Fair Housing include:
1. ____ of a single-family home when the owner owns no more than _____________________, and _______________________________ 2. Rental of an owner occupied ______________________ when the services of a broker are __________ and _________________________________ 3. _________ owning _____________________ may restrict occupancy to members of the congregation, as long as membership in the congregation is __________________ 4. Private clubs owning lodgings may restrict ___________ to members as long as the lodgings are not operated _________________ |
1. FSBO
than three homes at a time no discriminatory advertising is used. 2. 1-4 family home not used no discriminatory advertising is used 3. Churches rental property open to all 4. occupancy commercially |
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Blockbusting
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causing panic selling by homeowners, also known as panic peddling, prohibited by law
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steering
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directing buyers into or away from certain areas because of their race, color, etc. This is also known as channeling, prohibited by law
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___________________ in advertising is also a violation of this law (Fair Housing Law).
In advertising, these terms used to describe the property would be acceptable: |
Discrimination
(example - a tiny house could be advertised as "cozy for two" but not as "perfect for a couple") two bedroom, master down, etc. |
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Terms used to describe or imply the type of person/people who might live on or in a property would be a violation:
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no Irish, no wheelchairs, etc.
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The law requires that every broker display the ______ __________ ______________ ___________ in his office. Failure to display the poster may be considered _____ ______ evidence of discrimination. The Equal Housing symbol is a house with an equal sign inside
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Equal Housing Opportunity Poster (highlighted)
prima facie |
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Judges may award both _______________ and non-___________________ damages, issue injunctions, assess attorney's fees and assess civil penalties. There are no criminal penalties
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economic
economic |
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The maximum civil penalty for a single violation of the Fair Housing laws is ____________. (first offense is __________)
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$110,000
$55,000 |
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Victims have up to _______ to file a complaint. If a complaint is filed against a licensee, the licensee's best defense is _______________ of his interaction with clients and prospects.
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1 year
written records |
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This law (Federal Fair Housing) is administered by ___. When a complaint is made to ___, ___ will try ___________________________ to resolve the problem before pursuing the matter in court.
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HUD
HUD HUD mediation and conciliation |
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ADA
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The Americans with Disabilities Act, they blame everyone, removal of barriers (underlined), employment required
passed in 1990 to prohibit discrimination against individuals with disabilities. The main goal of the law was accessibility through the removal of barriers. Requirements include, but are not limited to: the installation of ramps, levered door handles, wheel chair access, lowering of telephones, use of Braille markers on elevator buttons, and flashing lights in addition to sirens for the hearing impaired. In addition, the employment of qualified job applicants, regardless of disability is required New construction, including remodeling, must meet higher standards of accessibility than existing structures. |
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exemptions to ADA
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single-family homes, churches before 1990 (renovation of old church or newly constructed churches must comply), historical buildings preserved to demonstrate the past (historical buildings that serve public purpose, like a courthouse, must be modified for ADA)
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In commercial properties, ______ ____ ___________ ___ ___ ________ can be held liable for the failure to provide access. Therefore, if a party is successful in a lawsuit, _____________________________ can be fined. This makes it more difficult for the owners of non-compliant buildings _________________. (ADA)
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both the landlord and the tenant
landlords and all tenants to find tenants |
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Violators of the ADA law may face injunctions and civil penalties of up to _____________ for a first violation and up to ____________ for subsequent violations
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$50,000
$100,000 |
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Individuals with a history of _____________________, who have been declared ___________, continue to be protected under ADA
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mental impairment
recovered |
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Brokerage
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real estate business that completes a transaction
the aspect of the real estate business that pertains to overseeing the needs of the parties and completing the transaction. Brokerage is not agency |
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A licensee sponsored by a broker will be a __________ ____ ___ ____ _______. A sponsorship agreement should cover matters such as: compensation, training hours, company identification, fees and use, expenses, fringe benefits, territory, withholding, termination of sponsorship and general office policies and procedures.
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general agent for that broker
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Most often, a licensee is an ________________________. __________________________ status must be established by ____________________ between the parties. An associate must have a _____________________, and 90% or more of his income must come from production, rather than ____________. A broker cannot require his sales associates to work ____________________________ without jeopardizing this independent contractor status with the IRS. Although a broker may not require _________, he may require a _________ commitment. An independent contractor must agree to pay all of his own payroll _______. None will be withheld from any payment he receives. Income will be reported to the IRS on form _______________. Even though a licensee is an independent contractor, the broker will be liable for the ____ of licensees he sponsors. ____________ and ______________ is in the best interests of both the broker and the salesperson
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independent contractor
independent contractor written agreement real estate license hours worked strictly scheduled hours set hours full-time taxes 1099 MISC acts Training Supervision |
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A licensee should practice within his area of _________________. For example: a new licensee with no specific background or education in finance or investing would not be considered competent to represent a client in purchasing __________________.
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Competence
investment property |
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Licensees are specifically prohibited from practicing ___ without a ___ license. Examples of this behavior would include giving ___________________ of documents involved in a transaction, preparing _________________ such as ____, ___________, ______, or ________________, advising a client on how to take ____, and discouraging clients from seeking the advice of _____________ in negotiations which involve special terms and conditions. When advising a client to see an _______, it should be done ________ a client signs anything he/she does not understand.
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law
law legal interpretation legal documents wills contracts deeds deeds of trust title an attorney attorney before |
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A licensee can be held financially responsible for any loss a client suffers if it is determined that the loss was a result of the licensee's ___________________________.
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unlawful practice of law
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