CRECI Regulatory Compliance and Ethics Questions and Answers

Question 1

A commercial real estate broker is representing a client in the purchase of an office building.
The broker is also a silent partner in the entity selling the building.
According to the broker's fiduciary duties, what is the most critical ethical obligation in this situation?

Accepted Answer

To disclose the conflict of interest to the buyer in writing before proceeding.

Answer

To negotiate the lowest possible price for the buyer to demonstrate loyalty.

Answer

To ensure the transaction closes as quickly as possible to meet the seller's needs.

Answer

To provide the buyer with a list of alternative properties.

Question 2

A retail tenant requests that the landlord install an automatic door opener at the main entrance to a shopping center built in 1985 to improve accessibility. Under the Americans with Disabilities Act (ADA), the landlord must comply with this request if the modification is determined to be what?

Accepted Answer

Readily achievable

Answer

Structurally essential

Answer

Universally designed

Answer

A capital improvement

Question 3

A prospective buyer of a commercial property is conducting due diligence. Which of the following is the primary purpose of a Phase I Environmental Site Assessment (ESA)?

Accepted Answer

To identify Recognized Environmental Conditions (RECs) through historical research and site inspection.

Answer

To physically test soil and groundwater for specific contaminants.

Answer

To obtain permits for the remediation of known hazardous materials.

Answer

To assess the structural integrity of the buildings on the property.

Question 4

A developer wants to build a small medical clinic in a zone designated for general commercial use. While medical clinics are not a prohibited use, the local zoning ordinance requires special review and approval for such facilities to ensure they are compatible with the neighborhood. What type of approval would the developer most likely need to seek?

Accepted Answer

A special use permit

Answer

A zoning variance

Answer

A non-conforming use permit

Answer

A certificate of occupancy

Question 5

Which of the following phrases in a property advertisement would most likely be a violation of the Fair Housing Act?

Accepted Answer

"Great for empty-nesters"

Answer

"Ideal for professionals"

Answer

"Desirable neighborhood"

Answer

"Close to a great church"

Question 6

A commercial real estate agent receives an all-cash offer for a high-value property from a foreign corporation with a complex, opaque ownership structure. The buyer is pressuring for an extremely rapid closing and is reluctant to provide standard documentation on the source of funds. Which regulatory concern should be the agent's highest priority?

Accepted Answer

Anti-Money Laundering (AML) protocols

Answer

Americans with Disabilities Act (ADA) compliance

Answer

Securities and Exchange Commission (SEC) regulations

Answer

Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA)