CRM Real Estate Law & Regulations 3

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:

Accepted Answer

It may have a disparate impact on racial minorities

Answer

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?

Accepted Answer

Accepting kickbacks for referring settlement services

Answer

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?

Accepted Answer

There is no federal cap on security deposits

Answer

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?

Accepted Answer

30 days

Answer

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?

Accepted Answer

A tenant's written confirmation of lease terms and current status

Answer

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.

(CRM) Certified Residential Manager Practice Test

(CRM) Certified Residential Manager Practice Test

CRM Real Estate Law & Regulations 3