Real Estate Law and Ethics Flashcards
7 cards from real CRECI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Real Estate Law and Ethics flashcards as text
Under the Americans with Disabilities Act (ADA), which commercial property owners are required to remove architectural barriers when 'readily achievable'?
Answer: All places of public accommodation regardless of building age
The ADA requires all places of public accommodation to remove architectural barriers when doing so is readily achievable, regardless of when the building was constructed.
A commercial tenant sublets space without authorization from the landlord. What is the most likely legal consequence?
Answer: The landlord can terminate the lease for breach of covenant
An unauthorized sublease typically constitutes a material breach of the lease covenant against assignment or subletting, giving the landlord grounds for termination.
Which ethical principle in the CRECI Code of Ethics requires members to disclose all known material facts that could affect a transaction?
Answer: Duty of disclosure
The duty of disclosure obligates CRECI members to reveal all known material facts that a reasonable party would consider important in deciding whether to proceed with a transaction.
A commercial broker represents both the buyer and seller in the same transaction without disclosing this arrangement. This is best described as:
Answer: Undisclosed dual agency
Undisclosed dual agency occurs when a broker represents both parties in a transaction without their knowledge or consent, which is an illegal and unethical practice.
Under the Statute of Frauds, which of the following commercial real estate agreements is ENFORCEABLE without being in writing?
Answer: An oral lease for less than one year
The Statute of Frauds generally requires real estate contracts to be in writing, but most states exempt short-term leases of one year or less from this requirement.
What is 'estoppel' in the context of commercial real estate law?
Answer: A principle preventing a party from asserting a claim inconsistent with prior conduct
Estoppel prevents a party from taking a legal position inconsistent with their prior statements or conduct when another party has reasonably relied on that conduct.
A real estate professional who steers a prospective buyer away from certain neighborhoods based on the racial composition of those areas is violating:
Answer: The Fair Housing Act
Steering based on race is a prohibited practice under the Fair Housing Act, which bars discrimination in the sale, rental, or financing of housing based on protected classes.