Real Estate Practice — Printable Practice Pack

Answer key & explanations

1. 1. C — Redlining is the practice of refusing to provide services, such as loans, to certain neighborhoods based on their demographics.
2. 2. B — A real estate agent's trust account must be non-interest-bearing, as interest-bearing accounts can create a conflict of interest.
3. 3. C — The advertisement is discriminatory because it implies that families are preferred, which could be seen as excluding other protected classes.
4. 4. D — Calling a consumer who has registered on the Do-Not-Call registry, without an exemption, is a violation of the registry.
5. 5. A — The transaction is subject to the Real Estate Settlement Procedures Act, which requires disclosure of settlement costs and prohibits certain practices, such as kickbacks.
6. 6. B — The agent should inform the buyer that they cannot discriminate based on familial status, as it is a protected class under the Federal Fair Housing Act.
7. 7. C — RESPA requires lenders to disclose settlement costs to borrowers, providing transparency and protecting consumers from abusive practices.
8. 8. A — The Americans with Disabilities Act (ADA) requires businesses to make their facilities and services accessible to people with disabilities.
9. 9. A — The agent should include a statement indicating that the property is available for sale to anyone, regardless of race or color, to comply with the Federal Fair Housing Act.
10. 10. D — All of the above options are examples of agreements between competitors that are prohibited under federal antitrust law, as they can harm competition and consumers.
11. 11. A — The Fair Housing Act prohibits discriminatory practices, including making statements that discourage buyers of a different race from purchasing a property.
12. 12. A — The Sherman Antitrust Act prohibits price-fixing and other anti-competitive practices.
13. 13. A — The agent is required to add the consumer's number to their internal do-not-call list and refrain from calling them.
14. 14. C — The agent is responsible for maintaining accurate records and accounting for all transactions in the trust account.
15. 15. B — The Fair Housing Act requires the agent to provide equal access to housing opportunities, including those with disabilities.
16. 16. A — The Real Estate Settlement Procedures Act requires the agent to provide the buyer with a Good Faith Estimate of settlement costs.
17. 17. A — Steering occurs when an agent directs a client to or away from a particular neighborhood or area based on the client's protected class, such as race or national origin. Showing a client only homes in a specific neighborhood could be an example of steering if the agent is doing so based on the client's protected class.
18. 18. A — The Sherman Antitrust Act prohibits price-fixing and market allocation, which are forms of anticompetitive behavior. Real estate agents must compete fairly and not engage in these practices.
19. 19. A — The Real Estate Settlement Procedures Act requires lenders to provide buyers with a good faith estimate of settlement costs, which helps to ensure that buyers are aware of the costs associated with the transaction.
20. 20. D — Blockbusting is a form of discriminatory practice that involves persuading homeowners to sell their properties by playing on their fears about the racial or ethnic composition of the neighborhood. If an agent is found to have engaged in blockbusting, they may face consequences such as license suspension, fines, and lawsuits from affected parties.