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Legal Compliance in Relocation Flashcards

7 cards from real CRP 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 in Relocation flashcards as text

  1. Under the Section 121 home sale exclusion, how much gain can a married couple filing jointly exclude if they meet the ownership and use tests?

    Answer: $500,000

    Married joint filers who meet the 2-out-of-5-year ownership and use tests may exclude up to $500,000 of gain ($250,000 for single filers).

  2. A transferee sells their home after living in it for only 12 months because of a job relocation. What may apply?

    Answer: A reduced (partial) Section 121 exclusion because of a change in place of employment

    A change in place of employment is an unforeseen circumstance that allows a prorated partial exclusion when the two-year test is not met.

  3. An RMC receives payments from a real estate broker in exchange for referring transferees, and no actual services are provided. Which federal law is most likely violated?

    Answer: RESPA Section 8

    RESPA Section 8 bans kickbacks and unearned fees for referring settlement services on federally related mortgage loans.

  4. An employer deducts a relocation repayment from a non-exempt employee's final paycheck. Under the FLSA, what limit applies?

    Answer: The deduction cannot take the employee's wages below the federal minimum wage for hours worked

    Under the FLSA, deductions for the employer's benefit cannot reduce a non-exempt employee's pay below minimum wage, and state laws may be stricter.

  5. A relocation counselor tells a transferee to look only in neighborhoods where 'people like you' live. Which law does this most likely violate?

    Answer: Fair Housing Act

    Steering buyers or renters toward or away from areas based on protected characteristics is illegal under the Fair Housing Act.

  6. A transferee leases or buys housing built before 1978. What disclosure does federal law require?

    Answer: Known lead-based paint and lead hazards, plus the EPA pamphlet

    Federal law requires sellers and landlords of pre-1978 housing to disclose known lead-based paint hazards and give the EPA lead hazard pamphlet.

  7. A new hire relocates and starts work. By when must the employer finish Section 2 of Form I-9?

    Answer: Within three business days after the first day of employment

    Employers must examine documents and complete Section 2 within three business days of the employee's first day of work.