Sales Practices & Ethical Standards Flashcards
7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Sales Practices & Ethical Standards flashcards as text
A prospective buyer asks a CCS agent whether the condominium building is 'safe.' The agent knows the building failed its most recent fire inspection. What must the agent do?
Answer: Disclose the failed fire inspection as a material fact
A failed fire inspection is a known material fact that directly relates to safety and must be disclosed proactively by the agent.
What does 'steering' mean in the context of condominium sales ethics?
Answer: Guiding buyers toward or away from neighborhoods based on protected characteristics
Steering is the illegal practice of directing buyers toward or away from properties based on race, religion, national origin, or other protected class characteristics.
An agent discovers after closing that they failed to disclose a known roof assessment that will be levied against all unit owners. The most likely consequence is:
Answer: Potential rescission of the contract and/or liability for damages
Failure to disclose a known material fact like a pending assessment can expose the agent to liability for damages and potentially allow the buyer to seek rescission.
Under the Fair Housing Act, which of the following is a protected class in the sale of condominium units?
Answer: National origin
National origin is one of the seven protected classes under the Federal Fair Housing Act, along with race, color, religion, sex, disability, and familial status.
A seller wants to accept only offers from buyers without children. A CCS agent should:
Answer: Refuse, as this violates the Fair Housing Act's familial status protection
Discriminating against buyers with children violates the familial status provision of the Fair Housing Act unless the property qualifies as housing for older persons.
Which document must be provided to a buyer purchasing a condominium unit under the Interstate Land Sales Full Disclosure Act (ILSA) if applicable?
Answer: Property Report
ILSA requires developers to provide buyers with a Property Report disclosing material information about the development before signing a purchase contract.
A condominium sales agent accepts a gift card from a title company after referring several closings to them. Under RESPA, this is:
Answer: Prohibited as an illegal kickback for referrals
RESPA prohibits any thing of value exchanged for the referral of settlement service business, regardless of the dollar amount.