Risk Management WA Real Estate Continuing Education 2021

Risk Management (WA Real Estate Continuing Education 2021) Flashcards

• Water stains on walls or ceilingsDetermining the value of a property by analyzing similar

sales of like-properties is called theA) mirror marketing effect.B) comparative market method.C) residential transaction process.D) home appraisal arrangement.Which is NOT an illegal per se violation of the Sherman Antitrust Act?Group boycottsRedliningPrice fixingTying arrangements Redlining The main purpose of RESPA is toA) protect the public.B) reduce government interference with loan products.C) reduce government spending.D) protect mortgage-related businesses.

• protect the public.

A conspiracy to fix real estate commissions affects interstate commerce becausecorporate brokerage offices aren't always in the same state as local brokerages.the property could be in a different state than where the buyer is located.the forms used in the transaction come from out-of-state printing companies.out-of-state mortgage lenders or insurers could be involved in the real estate transaction.out-of-state mortgage lenders or insurers could be involved in the real estate transaction.Which statement is correct when a court decides that an antitrust action is illegal per se?The court will use a "rule of reason" standard instead.An investigation will be started.No defense can be presented.A hearing will be held.No defense can be presented.NOT A) Discrimination based on religious belief. Which of these best describes a "net listing"?A) Any listing promoted exclusively over the internet, email, or other electronic media.B) Any fraudulent or inaccurate listing designed to inflate the price of another listed property.C) A listing in which the commission is composed of more than one component beyond the usual commission split.D) A listing in which the commission is the excess between the sale price and some other agreed upon price.

• a planRisk anticipation means to identify or predict problems that

can arise in a transaction. Licensees should attempt to establish a strategy to _____ problems instead of dealing with them after they happen.A) diffuseB) minimizeC) avoidD) divert

• protect a licensee from claims brought by an unhappy

client because of the actions taken by that licensee during the course of representation.Which of these is NOT one of the three primary points of potential liability that comes from doing real estate business over the internet?A) Economic uncertainty.B)

Advertising rules.C) Disclosure law.D) Privacy protection.

Negligence is a result of a licensee not measuring up to a reasonable standard ofA) accounting.B) trust.C) loyalty.D) care.NOT A) accounting.NOT B) trust.Which is the best advice for avoiding an antitrust lawsuit?Avoid dual agency situationsNever discuss setting fixed commission rates with your competitor officesNever commingle trust funds with your personal accountAlways make sure records are complete and up to date NOT Always make sure records are complete and up to dateNOT Avoid dual agency situations

• protectedWhen are referral fees an acceptable practice?A)

Always.B) Only when agreed to by the principal.C) Only when disclosed to the principal.D) Never.

• Mary is disclosing confidential information Which of the following is an example of steering?A) Not

showing properties to a buyer in certain areas of a city based upon the licensee's assumed perceptions of the buyer's racial preferences.B) Refusing to sell an insurance policy to a homeowner because of the racial composition of a neighborhood.C) Showing a buyer only the neighborhoods that the buyer indicates they are wanting to live in when the licensee knows them to have very few minorities.D) Encouraging a seller to sell because a particular minority group is moving into the neighborhood.Damages awarded to place an injured party in the same position as before a contract was entered into are calledA) promissory damages.B) punitive damages.C) actual damages.D) nominal damages.

• actual damages.

If a licensee will receive fees from lenders or other service providers who are involved in the settlement processA) the licensee is automatically in violation of RESPA.B) the licensee should engage legal counsel to determine if the fee arrangement meets the requirements of RESPA.C) the licensee must split the fee with their client.D) the fee can be deductible from the licensee's income tax statement.NOT A) the licensee is automatically in violation of RESPA.NOT D) the fee can be deductible from the licensee's income tax statement.A violation of the federal Sherman Antitrust Act by an

individual may result in:a fine up to $2,000,000.both a fine

up to $1,000,000 and prison term up to 10 years.a fine up to $100,000.a prison term up to 3 years.both a fine up to $1,000,000 and prison term up to 10 years.Which of the following is NOT a possible remedy available to an injured party for breach of contract?A) Specific performanceB) Liquidated damagesC) Tortuous compensationD) Monetary damages

• Tortuous compensation

Complaints filed by the Department of Justice alleged that because the NAR, in a proposed bylaw, adopted practices intended to stifle Internet-based rivals and discounters that the NAR was guilty of which antitrust violation?Group boycottingTying arrangementCollusionPrice fixing Group boycotting

NOT A) Any listing promoted exclusively over the internet, email, or other electronic media.NOT C) A listing in which the commission is composed of more than one component beyond the usual commission split.If a real estate agent representing a seller intends to purchase the property directly from the seller, this would put the agent in a conflict of interests regarding the fiduciary duty of _____.A) loyaltyB) accountingC) obedienceD) care Property Manager Rosa is entering into a property management agreement with property owner Kain. In exchange for a greatly-discounted management fee, the agreement requires Kain to list his property with the real estate brokerage owned by Rosa's brother if Kain intends to sell his properties.Which of the following best describes this type of arrangement?Group boycottConditioned agreementTying arrangementPrice fixing Tying arrangement

• early communication.The main purpose of errors and omissions insurance is

to:A) reimburse the owner of a brokerage for damage to

their office building that resulted from a wind storm.B) compensate a licensee for injuries to a client from an automobile accident in which the client was involved while the licensee was showing the client some properties for sale.C) protect the owner of the brokerage from adverse claims against the ownership of the business.D) protect a licensee from claims brought by an unhappy client because of the actions taken by that licensee during the course of representation.Foreclosure is a remedy available toA) the seller's agent.B) the buyer's agent.C) the real estate brokeragesD) the lender who holds a mortgage or trust deed.

• the lender who holds a mortgage or trust deed.

Which of these services does RESPA prohibit a seller from requiring of the buyer?A) A specific escrow agentB) An appraisalC) Auxiliary services (pest control, etc.)D) A particular title insurance provider NOT A) A specific escrow agentNOT B) An appraisal Which is NOT a category of breach of contract?A) Anticipatory.B) Extended.C) Partial.D) Total.NOT A) Anticipatory.NOT C) Partial.

• Spacious home on 0.52 acre corner lot on dead-end

street in a great estate neighborhood. Walk to St. Thomas More Catholic Church. Large open greatroom with cathedral ceiling. Stainless steel appliances. New high efficiency furnace. Newly renovated kitchen.Real estate licensees should shun which kind of profit?A) Profit based on service instead of salesB) TipsC) Disproportionate profitsD Undisclosed profits If a party in breach of contract is ordered by the court to fulfill their contractual obligations, an action for _____ has been filed.A) specific performanceB) restitution and rescissionC) reformation and reconstitutionD) negligent representation

• specific performance

NOT A) requires the licensee to place all case files in a bank safety deposit box as required by state law.NOT B) is