Legal Compliance & Documentation Flashcards
7 cards from real CFA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Legal Compliance & Documentation flashcards as text
Under the Fair Housing Act, a field agent must avoid:
Answer: Adjusting the thoroughness or findings of an inspection based on the buyer's protected class
The Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, disability, or familial status, including in professional services like inspections.
How long are field agents typically required to retain copies of completed inspection reports?
Answer: 3 to 7 years, depending on state law
Most states require field agents to retain inspection records for 3 to 7 years to satisfy potential litigation timelines and regulatory audit requirements.
A field agent notices signs of an active pest infestation. Without a pest control license, the agent should:
Answer: Document the observable signs and recommend a licensed pest control inspection
Documenting observable signs of infestation and referring to a licensed pest control professional keeps the agent within their legal scope while flagging the issue.
Which of the following best describes a material defect in the context of field inspection documentation?
Answer: A condition that significantly affects the value, safety, or habitability of the property
A material defect significantly impacts value, safety, or habitability and must be disclosed; it is not defined by repair cost or cosmetic appearance alone.
What is the purpose of a limitation of liability clause in a field inspection contract?
Answer: To cap the agent's financial exposure to a defined amount in case of professional error
Limitation of liability clauses cap the agent's financial exposure, often at the fee paid, though courts may not always enforce such clauses.
When documenting electrical panel findings, which description best meets professional reporting standards?
Answer: 'Observed double-tapped breakers at positions 4 and 6; recommend evaluation by a licensed electrician'
Professional documentation requires specific location, observed condition, and a clear action recommendation rather than vague or passing characterizations.
A field agent operating in multiple states must be aware that:
Answer: Licensing, reporting, and disclosure requirements vary by state and must each be individually satisfied
Field inspection regulations are state-specific; agents working across state lines must hold valid credentials and comply with each state's unique requirements.