CRM Real Estate Law & Regulations 3 — Questions and Answers
Question 1: A property manager screens applicants using a blanket policy that automatically rejects anyone with any criminal record. This policy may violate fair housing law because:
- Criminal history is a protected class under the FHA
- It may have a disparate impact on racial minorities (Correct answer)
- It violates RESPA guidelines
- Landlords must accept all applicants regardless of criminal history
Correct answer: It may have a disparate impact on racial minorities
HUD guidance indicates that blanket criminal history bans may have a disparate impact on protected classes, particularly racial minorities, and could violate the FHA.
Question 2: Under RESPA (Real Estate Settlement Procedures Act), which practice is prohibited?
- Charging application fees
- Accepting kickbacks for referring settlement services (Correct answer)
- Requiring security deposits
- Setting market-rate rents
Correct answer: Accepting kickbacks for referring settlement services
RESPA prohibits kickbacks, fee-splitting, and referral fees between settlement service providers that are not for services actually performed.
Question 3: What is the maximum security deposit typically allowed under state law for an unfurnished residential unit in many U.S. states?
- One month's rent
- Two months' rent
- Three months' rent
- There is no federal cap on security deposits (Correct answer)
Correct answer: There is no federal cap on security deposits
Security deposit limits are set by individual states, not federal law; there is no federal cap, and limits vary widely by state.
Question 4: A tenant who signs a month-to-month lease is generally entitled to how much notice before the landlord terminates the tenancy?
- 7 days
- 14 days
- 30 days (Correct answer)
- 60 days
Correct answer: 30 days
Most states require 30 days' written notice to terminate a month-to-month tenancy, though some require longer periods for longer-tenured tenants.
Question 5: Which of the following best describes an 'estoppel certificate' in property management?
- A court document ordering a tenant to vacate
- A tenant's written confirmation of lease terms and current status (Correct answer)
- A landlord's disclosure of property defects
- A municipality's certificate of occupancy
Correct answer: A tenant's written confirmation of lease terms and current status
An estoppel certificate is a document signed by a tenant confirming the current terms of their lease, rent amount, and any known claims against the landlord.
Question 6: The Uniform Residential Landlord and Tenant Act (URLTA) is significant because it:
- Establishes federal rent control standards
- Provides a model framework many states have adopted for landlord-tenant law (Correct answer)
- Requires all landlords to be licensed by the federal government
- Mandates mediation before any eviction proceeding
Correct answer: Provides a model framework many states have adopted for landlord-tenant law
The URLTA is a model act developed to standardize landlord-tenant law, and many U.S. states have adopted it in whole or in part.
Question 7: Under the Fair Debt Collection Practices Act (FDCPA), which action by a third-party rent collector is prohibited?
- Sending a written notice of debt
- Calling a tenant between 8 a.m. and 9 p.m.
- Threatening legal action without intent to sue (Correct answer)
- Providing a validation notice within 5 days of contact
Correct answer: Threatening legal action without intent to sue
The FDCPA prohibits debt collectors from making false threats of legal action they do not intend to take or are not authorized to take.
CRM Real Estate Law & Regulations 3
A property manager screens applicants using a blanket policy that automatically rejects anyone with any criminal record.
This policy may violate fair housing law because: