ADHI Legal Aspects of Real Estate Flashcards

ADHI Legal Aspects of Real Estate Flashcards The federal case that upheld fair housing was a. Jones v. Mayer In selling mobile homes, a real estate broker may NOTd. do any of these most real estate disputes are adjudicated in b. superior courts Broker Thomas, who was a member of the city planning commission, told his friend broker Jones that an area was to be rezoned from agricultural use to commercial use.Broker Thomas did not receive any consideration for this information. Broker Jones purchased several parcels in the area and made a profit when the zoning was changed.Which broker has placed his license in jeopardy?

• Thomas

Our system of statutes in California could BEST be described as

• civil law

A real estate agency disclosure form is required to be given to the buyer and the seller of

• all of these.

An agent exceeds a secret limitation in the agency agreement while dealing with a third party. Which statement would be correct?

• both of these are correct

there is no uniform code forc. real property a prospective buyer knows that the owner is considering accepting an offer from another party. He asks you, the listing broker, the amount of the offer so that he can exceed it. You should

• notify the owner of the request

A broker's loan statement is prepared for the benefit of thed. borrower the equal dignities rule concernsb. the requirement that certain agency agreements be in writing A broker would MOST likely be responsible to salespeople for

• workers' compensation

decisions of the department (bureau) of real estateb. may be appealed to the courts a fiduciary relationship exists betweena. a broker and his principal The Equal Credit Opportunity Act is BEST described asc. civil law which is not a requirement of an agency relationship?a. compensation to the agent in selling listings of another broker, a real estate salesperson is directly responsible to

• his broker

As a licensee dealing with people of other races, you should

• be completely "color-blind" regarding race

damages awarded by a court in excess of actual damages suffered by a plaintiff are known as

• exemplary damages

A Legal agency requires thatd. the parties consent to the agency An agency relationship could be created by all of the following EXCEPT

• court order

A seller's agent, in selling a home, must b. disclose the agency representation to both buyer and seller an agent need not disclose to an owner that he has received an offer when

• escrow has already closed

Which statement is TRUE about required disclosures to residential buyers?

• all of these statements are true

a court ordered all parties released of their obligations. the remedy granted was

• rescission

the california court that has original jurisdiction for a claim of $100,000 would be the

• superior court

After collecting an advance rental fee of $75, you are unable to provide your client with a rental that suits her.When she requests a refund, upon expiration of her rental contract, you must return

• $25

a dual agent mustd. do none of these which statement is TRUE of the buyer's duties? d. Buyers have no duty to disclose material facts to the seller when an agent commits a tort while carrying out agency duties, the

• agent would personally be liable for the tort

Which activity requires a real estate license d. acting as a mortgage loan broker A broker told prospective purchasers, "You will love living in this neighborhood." After experiencing problems with their new neighbors, they sued the broker for this false statement. A court would likely determine the statement was

• puffing

Broker Thomas, who was not your agent, told prospective tenants that he was your agent to lease your property.Thomas leased your property, and you accepted the rent from the tenant. You may NOT now deny the agency because of

• ratification

equitable remedies include all of the following excepta. monetary damages the process whereby a third person works to resolve a problem but may not impose a decision on the parties is known as

• mediation

Which constitutional amendment allows homeowners to place to place a For Sale sign on their home?

• first

Refusal to make a mortgage loan within a designated area is known as

• redlining

a nonlicensee may properly be paid a finder's fee if sheb. introduced the parties to the licensee In presenting to an owner two identical offers requiring seller financing, which act of the broker would be wrong?

• mentioning that one buyer was black

which is TRUE about real estate agents' liability?d. an agent can be held liable for a tort committed by the agent during the agency a broker takes listings in an area where property values are going down because the neighborhood is changing, and

there is a mass exodus of whites. which of the following actions by the broker would be a violation of fair housing laws?

• both of these

ethics is BEST described asb. doing what is right which statement about lawsuits is not correct? a. the defendant commences the action with a complaint The Civil Rights Act of 1968, as amended, does NOT prohibit

• housing reserved for the elderly

Reliance on previous decision is BEST described asb. stare decisis an agency created by a principal who intentionally, or by want of ordinary care, causes a third person to believe another to be his agent, who is not really employed by him, would be

• an ostensible agency

An agency for a stated period of time would be terminated before the expiration date by all these EXCEPT

• refusal of the principal to accept an offer

A person would MOST likely contact the real estate commissioner to

• report fraud of a licensee

a nonresident who wishes to obtain a California real estate license must

• consent to process service on the secretary of state if

the prospective licensee cannot be located within the state you made a statement that induced a person to act as a result of relying on that statement. The legal principle that now prevents you from asserting facts that are contrary to your previous declaration is known as

• estoppel

a three-hour course in ethics is required to be takenc. before a salesperson's first license renewal The maximum amount a person can obtain from a licensee after obtaining a judgment against the licensee for a fraudulent act is

• the amount of the judgment

which statement is NOT an IRS requirement for a real estate salesperson to be treated as an independent contractor so that the employing broker can avoid withholding taxes and Social Security contributions?

• That the salesperson work without supervision

all these events would terminate agency EXCEPT a. the death of a corporate officer of the agent's principal For a broker's violation of the Civil Rights Act of 1968, the courts would NOT

• revoke or suspend the broker's license

the regulation of real estate licensees is covered in thed. business and professions code which is not an advantage of voluntary arbitration?b. right to appeal In advertising a mobile home, a broker used "no down payment" in the ads because he had arranged a separate loan to cover the down payment. The advertising was

• expressly prohibited

which statement is TRUE regarding net listings? b. the broker must disclose the amount of commission to be received An agent may pay a fee to an unlicensed party who d. introduces the buyer to the broker A broker for a corporation who also wants to conduct a separate brokerage business must

• obtain a separate broker's license

which of the following is an example of steering? c. both of these the Easton decision about required disclosures does NOT apply to

• nonresidential property

a broker sold an apartment building to a syndicate of which the broker was member without informing the seller of this