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Marketing Regulations

Multiple Choice
Identify the choice that best completes the statement or answers the question.
 

 1. 
Before a buyer makes an offer on the property, the buyer should have received and read the. 
a.
Broker policy manual.
b.
Property Disclosure Form.
c.
Independent contractor agreement.
d.
General warranty deed
 

 2. 
Information that is important to buyers that could change the decision to buy a property is:
a.
Always found in the Property Disclosure Form
b.
Always found during the property inspection
c.
Known as a material fact
d.
Known as a physical defect to the property
 

 3. 
A property that has an undesirable reputation because of an event that occurred on or near it is.
a.
Considered dangerous.
c.
Stigmatized property.
b.
Considered polluted.
d.
A physical hazard.
 

 4. 
The gas that is a product by the natural decay of radium is
a.
Carbon monoxide.
b.
formaldehyde
c.
Mold
d.
Radon
 

 5. 
One of the major environmental hazards that can contaminate the underground water supply is.
a.
 Eliminating the use of asbestos in plumbing applications.
b.
 Encasement of lead-based paint.
c.
Legal restrictions of the use of PCBs.
d.
 Leaking underground storage tanks.
 

 6. 
Environmental issues that would render a property a toxic waste site would be?
a.
Mold was found on a shower curtain.
b.
intact lead-based paint was discovered.
c.
The radon level was 3 pCi/l of air
d.
The property was used as a meth lab
 

 7. 
Hidden defects not easily discovered by inspection are called.
a.
Patent defects
c.
Latent defects
b.
Fraudulent defects
d.
Observable defects
 

 8. 
A residential home that was built in 1951 is currently on the market. By federal law, the buyer should be given the.
a.
Agency disclosure form.
b.
Consumer’s guide to agency relationships.
c.
Zoning disclosure form.
d.
Lead-based paint disclosure form.
 

 9. 
Directing buyers into or out of certain neighborhoods based on a protected class is the illegal practices of.
a.
 Intimidation
c.
Steering
b.
 Blockbusting
d.
Redlining
 

 10. 
If a community is occupied solely by person's age sixty-two or older; or if 80 percent of the units are occupied by someone fifty-five or older, the building is exempt from discrimination based on.
a.
Race
c.
National origin
b.
Sex
d.
Marital Status
 

 11. 
The transaction would be exempt from the federal fair housing laws if the owner did not place a discriminatory ad and the services of a broker we're not used in the.
a.
Sale of a single-family home where the seller does not own more than three homes.
b.
Sale or rental of a 20 unit apartment building owned by a real estate agent.
c.
Rental of a four bedroom condominium owned by an off-site, sole investor.
d.
Sale of a four bedroom condominium owned by four or fewer investors.
 

 12. 
According to the Civil Rights Act of 1866. Discrimination because of race would have a maximum fine of.
a.
 Up to $11,000 dollars for the first offense.
c.
Up to $55,000 for the third offense committed within seven years.
b.
 $27,500 for the second offense committed within five years.
d.
No Limit
 

 13. 
Which of the following is an environmental hazard associated with leakage near electrical equipment?
a.
Urea formaldehyde.
b.
 Radon.
c.
 Polychlorinated biphenyls (PCBs).
d.
 Asbestos.
 

 14. 
Which of the following best defines blockbusting?
a.
Limiting the number of multi-family units that can be built in a minority neighborhood.
b.
Informing owners that minorities are moving into the area and they better sell now.
c.
Discriminating against minorities by limiting the neighborhoods in which homes are shown.
d.
A lender would refuse to negotiate loans to qualified buyers in minority neighborhoods.
 

 15. 
Federal Fair Housing Act applies to all of the following types of properties EXCEPT
a.
one-to-four family property
b.
residential vacant land sales
c.
two hundred unit condo community
d.
commercial and industrial properties
 

 16. 
A landowner, who is also an attorney, owns a duplex. One of the tenants moved out and his ad in the local paper reads: For rent: 2-bedroom apartment in a duplex, Steep stairs, no children or pets. Is the ad legal?
a.
Yes, because he is an attorney and he does not have to follow for housing guidelines.  
b.
Yes, because the property has steep stairs, he is protecting children, and that is legal.
c.
No, because a duplex is exempted from the fair housing laws.
d.
No, because children can only be excluded if the property meets the guidelines for the elderly
 

 17. 
To install a septic tank, a person would have to conduct:
a.
a Hydroponics test.  
b.
a Percolation test.
c.
a Septic soil test.
d.
a Topography test
 

 18. 
The lead-based paint disclosure form must be given to potential buyers and tenants when the property was built before.
a.
1956.
b.
1968.
c.
1976..
d.
1978.
 

 19. 
Potential buyers have written an offer on a property it falls under the guidelines for lead-based paint disclosures. If the buyers want to have the property inspected, how many days do they have to conduct a lead-based paint inspection? 
a.
5.
c.
12.
b.
10.
d.
15.
 

 20. 
Which of the following statements is FALSE regarding the federal lead-based paint disclosure law?
a.
Tenants have 10 days to inspect for lead-based paint before the lease agreement is binding.
c.
Buyers and tenants have the right to any prior inspection records and reports.
b.
Buyers may waive their rights to have the property inspected for lead-base paint.
d.
Federal law requires the disclosures to be kept for three years.
 

 21. 
All the following would be exempt from the federal lead-based paint disclosure laws EXCEPT.
a.
The rental of units in an apartment building constructed in 1951. 
c.
The sale of units in a senior citizens community constructed in 1960
b.
 A two-week vacation lease in a building constructed in 1977.
d.
A property sold at a foreclosure sale that was constructed in 1975
 

 22. 
Which of the following parties is NOT responsible for giving the Protect your family from lead in your home document to potential buyers and tenants?
a.
Seller.
b.
Landlord.
c.
Real estate agent.
d.
Settlement agent.
 

 23. 
According to the EPA, approximately how many homes in the United States have elevated radon levels?
a.
1 out of 4.
b.
1 out of 10.
c.
1 out of 15.
d.
1 out of 20.
 

 24. 
The two major sources of radon entry into a building are.
a.
Basement and roof.
c.
Pets and people.
b.
Air and water.
d.
Computers and cell phones
 

 25. 
The EPA recommends that every building home should be tested for radon. The EPA action level for mitigation is
a.
1 pCi/L
c.
4 pCi/L
b.
2 pCi/L
d.
10 pCi/L
 

 26. 
Materials that contain more than one percent asbestos and that crumble by hand pressure when dry are known as
a.
friable ACM's 
c.
water-resistance ACM's
b.
non-friable ACM's
d.
high electrical conductivity ACM's.
 

 27. 
A homeowner had a problem with water leakage into the basement. Estimates to repair the leak ranged between $15,000 to $20,000. The owner couldn't afford the repairs, so he constructs a false floor over the entire basement. Next, he installs carpet over the false floor. When he listed the house you did not disclose the leak nor the false floor on the property disclosure form. This is an example of:
a.
a Patent defect and the agent may be liable for not discovering the false floor.
b.
a Patent defect and the agent is not liable for not discovering the false floor.
c.
a Latent defect and the agent may be liable for not discovering the false floor.
d.
a Latent defect and the agent is not liable for not discovering the false floor.
 

 28. 
The level of airplane noise in the neighborhood or possible environmental issues in surrounding properties would be best classified as.
a.
Material defects.
c.
Material information.
b.
Material facts.
d.
Material breach.
 

 29. 
Abandoned factories, former dry cleaners, and vacant gas stations that may contain environmental hazards are classified as.
a.
Brownfields.
b.
Greenfields.
c.
Wetlands.
d.
Priority list sites.
 

 30. 
Telemarketers are required to check the day Do Not Call list every.
a.
7 days.
b.
14 days.
c.
31 days.
d.
60 days
 

 31. 
A licensee should check which of the following databases before making phone calls to solicit a listing?
a.
Google and Microsoft databases.
c.
Real estate commission and Realtors databases.
b.
Antitrust and fair housing databases.
d.
Federal Trade Commission and brokerage firm databases.
 

 32. 
A listing has expired how many months may the agents in the listing office call a seller who is on the Do-Not-Call list?
a.
12 months.
b.
18 months.
c.
24 months.
d.
36 months.
 

 33. 
Which of the following statements is FALSE in regards to the Do Not Call list?
a.
A licensee may call an FSBO whose number is on the Do Not Call list if he/she has a buyer interested in seeing the property.
b.
A licensee may not call the FSBO whose number is on the Do Not Call list to solicit the listing.
c.
When a listing has expired only agents from the brokerage firm list of the property may call the owner for the timeline allowed by law.
d.
When a Consumer calls an agent to request information about listed property,  the agent makes all the potential buyer at any time in the future.
 

 34. 
The Can-Spam Act established guidelines for sending.
a.
Solicited facsimiles.
b.
Unsolicited facsimiles.
c.
Solicited emails.
d.
Unsolicited email.
 

 35. 
Commercial email must include an opt-out method which of the following statements is FALSE regarding the opt-out requirements?
a.
The words of that must be easily seen by the sender of the email
b.
Request to opt-out must be honored within 10 business days.
c.
The receiver must be able to opt-out for at least 30 days after the message is sent.
d.
Email must contain the words opt-out prominently in the email.
 

 36. 
In regards to property defects, compensatory damages are defined as.
a.
Actual damages for the repair of the defect.
c.
Incidental damages that occur in every real estate transaction.
b.
Damages to punish the person who did not disclose.
d.
Special damages because of the inconvenience to the party.
 

 37. 
Which of the following is not a member of a protected class under the federal fair housing laws?
a.
Familial status. 
b.
National origin.
c.
Sex.
d.
Marital status.
 

 38. 
A lender refuses to negotiate a loan with a qualified buyer because the property is located in a geographic area that the lender considered high risk. The lender is guilty of.
a.
Disintermediation.
c.
Redlining.
b.
Disobeying usury laws.
d.
Steering.
 

 39. 
The following actions are legal except.
a.
A broker who displays the Equal Housing poster in the main office.
b.
An appraisal report stating the racial composition of the neighborhood. 
c.
Refusing to add a racial restrictive deed covenant to a deed.
d.
Discussing with the homeowners the importance of the fair housing laws.
 

 40. 
Which of the following is false in regards to fair housing penalties?.
a.
There can be a fine for the first offense of up to $16,000.
b.
There can be a fine of up to $1,000 for intimidation.
c.
The maximum fine for racial discrimination is $65,000.
d.
There can be a fine of up to $100,000 for failure to attend a hearing
 

 41. 
All of the following types of properties are EXEMPT  from the federal fair housing laws EXCEPT.
a.
 A one to four-family dwelling that is owner-occupied, no discriminatory advertising is used and the services of a brokerage or agent are not used.
b.
A non-profit religious organization can restrict residential facilities to persons of that religion as long as membership in the religion is not discriminatory.
c.
An owner-occupied single-family home that uses the services of a broker and asks an agent not to sell the property to a buyer of a certain religion.
d.
A non-profit for a club that may discriminate and refuse to allow someone who is not a member to reside in a residence.
 

 42. 
All the following terms would be allowed in an advertisement of a property except.
a.
Master bedroom.
b.
Kosher meals available.
c.
Retiree’s dream home.
d.
Mother-in-law suite
 

 43. 
Which of the following advertisements would be legal under the antitrust laws?
a.
“We charged the same as everyone else-6 percent commissions- but our service is priceless!”
b.
“List with us! We’re a traditional real estate firm and other traditional brokers show our listings!”
c.
“We're having a sale! List with us between now and April 30th and the commission rates is only 4.5 percent!”
d.
“You get what you pay for! Flat fee companies don't work as hard as we do! We're worth our standard 7 percent fee!”
 

 44. 
Lead poisoning is a danger to you.
a.
Children.
b.
Pregnant women.
c.
Seniors.
d.
Everyone.
 

 45. 
The environmental hazard that people need to be aware of when burning fuels, such as wood, oil, natural gas without proper ventilation is.
a.
Mold.
b.
Carbon monoxide.
c.
Radon.
d.
Urea formaldehyde.
 

 46. 
The federal law that taxed the petroleum industry and created a national inventory of hazardous waste sites is
a.
CERCLA
c.
TSCA
b.
SARA
d.
CWA
 

 47. 
A person owned a dry cleaning business from 1962 to 1979. He, like other dry cleaners in the area, dumped perchloroethylene (PRC) on to the ground in the backyard of the building. If the previous owner is named as a potentially responsible party, his liability will most likely be classified as.
a.
Joint and severely liable.
c.
Strict liability.
b.
Retroactive liability.
d.
Individual liability.
 

 48. 
The purpose of an Environmental Site Assessment is:
a.
to Identify potentially responsible parties for past environmental issues.
b.
to Determine appropriate and reasonable solutions for environmental issues.
c.
to Collect and analyze samples of soil and water to test for environmental issues.
d.
to Identify potential for existing environmental issues.
 

 49. 
While inspecting a property, The inspector pointed to a twelve-inch crack that started at the corner of a window and moved in a somewhat vertical direction down the wall. The crack is an example of a(n).
a.
Latent defect.
b.
Patent defect.
c.
Structural defect.
d.
Environmental defect.
 

 50. 
According to the Department of Justice, the average math lab will produce how many tons of toxic waste for every pound of meth it produces?
a.
one to two
c.
five to seven
b.
three to four
d.
seven to nine
 

 51. 

Under the federal Do-Not-Call Law, the civil fines for each violation can be up to.
a.
$1000.      
b.
$2000.
c.
$11,000.
d.
$25,000.
 

 52. 
A licensee sent out broadcast faxes to announce a reduced price on a listed Property. A person who received the fax chose to opt-out from receiving additional faxes from the licensee. The opt-out request must be honored within
a.
seven days
b.
ten days
c.
fourteen days
d.
thirty days
 

 53. 
Under the Can-Spam Act, the fine for sending an unsolicited email can be up to.
a.
$1000.
b.
$5000.
c.
$10,500.
d.
$16,000
 

 54. 
The 1896 Supreme Court cases that established this is separate but equal doctrine that was practiced in many parts of the country was
a.
Plessy vs Ferguson.
b.
Jones vs Mayer.
c.
Dred Scott vs Sanford.
d.
Shelley vs Kramer.
 

 55. 
A landlord has a no kids policy this is legal if.
a.
The building is in owner-occupied, one to four family unit.
c.
everyone living in the apartments is at least 62 years of age.
b.
It applies to all pregnant women.
d.
The landlord also has a no pet policy.
 

 56. 
All of the following terms would be illegal in an advertisement accept
a.
Adults only.
b.
Empty nesters.
c.
Married couple.
d.
Wheelchair ramp.
 

 57. 
A foreign student is in the United States to study at a university. when filling out an application to rent an apartment, the landlord asks for documentation to determine his citizenship and/or immigration status. Is this action legal?
a.
 Yes, because landlords may ask for citizenship and/or immigration status documentation during the screening process if HUD guidelines are met. 
b.
Yes, because the Uniform Landlord Tenant Act requires prospective tenants to provide citizenship and/or in Immigration documentation.
c.
No, because foreign students would fall into a protected class based on national origin.
d.
No, because it is illegal for foreign students to be asked to show citizenship and/or immigration status documents.
 

 58. 
A person with a physical disability has found an apartment that must be remodeled to accommodate her needs. Which of the following actions would be illegal for the landlord to require?
a.
Because she is disabled, she will be required to pay a larger security deposit and other tenants.
c.
Money must be placed an escrow account to return the apartment to its original condition when she moves out.
b.
The landlord can review the renovation plans and require qualified contractors to perform the work.
d.
The landlord can require the tenant to pay for all the renovations.
 

 59. 
The landlord would have the right to evict all of the following tenants accept.
a.
A tenant who is late with the rent payment.
b.
A tenant who has revealed that he/she has AIDS.
c.
A tenant who disturbs other tenants.
d.
A tenant who uses the property for an illegal purpose.
 

 60. 
A lender has the right to deny lending money to a minority application when the applicant
a.
Applies in geographic locations that are not acceptable to the lender.
b.
Does not financially qualify to purchase the property.
c.
Agrees to let the lender alter the terms of the loan.
d.
Agrees to pay a higher interest rate.
 

 61. 
As of April 2010, contractors performing renovations, repairs, and painting projects that disturb lead-based paint in homes, childcare facilities, and schools built before 1978 must be certified by the.
a.
Federal lead-based paint Commission.
b.
State lead-based paint Commission.
c.
Environmental Protection Agency. 
d.
Bromfield prevention agency.
 

 62. 
A family going on a two-week vacation turned off the air conditioning unit even though it was predicted to be very hot July. While they were gone the washing machine water hose burst and spewed water in the basement for several days. Environmental issues that the owner will most likely discover when they return home is.
a.
Radon.
b.
Formaldehyde
c.
Polychlorinated biphenyls.
d.
Mold.
 

 63. 
When an agent has the owner complete a seller's property disclosure form and provides it to the buyer in a timely manner, the agent is BEST protecting the liability of the.
a.
Buyer.
b.
Broker.
c.
Endor.
d.
Seller.
 

 64. 
The Buyer is purchasing a new home in a subdivision. Which document should the buyer confirm has been an issue before he moves in?
a.
Certificate of no defense.
b.
Certificate of occupancy.
c.
Building certificate.
d.
Code certificate.
 

 65. 
Before constructing an addition to an existing building, a person should secure a.
a.
Building permit.
b.
Business license.
c.
Building loan.
d.
Building contractor.
 

 66. 
While looking at a property, the potential buyers asked, “Is that fence the boundary line?” the agent should recommend that the buyers.
a.
Read the legal description.
c.
Have a stake survey.
b.
Ask the owners.
d.
Ask the neighbors.
 

 67. 
The act of harming the reputation of another by making false statements to a third person is known as.
a.
Misrepresentation.
b.
Fraud.
c.
Deception.
d.
Defamation.
 

 68. 
When the defamatory statement is expressed orally it is called.
a.
 Lying.
b.
Frog.
c.
Libel.
d.
Slander.
 

 69. 
When a defamatory statement is expressed in a fixed medium, such as an online post, it is called.
a.
Intentional Misrepresentation.
c.
Libel
b.
Negligent Misrepresentation.
d.
Slander.
 

 70. 
Potential tenants have how many days to have the property inspected for lead-based paint before the lease becomes effective?
a.
0
c.
10
b.
5
d.
12
 



 
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