Safety and Compliance Flashcards

Which of these is NOT a protected class under the federal Fair Housing Act?

Answer: Source of income

The federal protected classes are race, color, religion, sex, national origin, familial status, and disability; source of income is protected only by some state and local laws.

A buyer asks the TC which neighborhoods have 'the right kind of families.' What is the compliant response?

Answer: Decline to characterize neighborhoods and point the buyer to objective public data sources

Steering buyers based on the makeup of a neighborhood violates fair housing law, so the TC should point to objective sources instead.

An agent asks the TC to write custom contingency language for a complex sale clause. What is the most compliant action?

Answer: Decline and recommend the agent use approved forms or consult a real estate attorney

Drafting custom legal language can be unauthorized practice of law, so TCs should stick to approved forms and refer legal drafting to attorneys.

In most states, which task generally requires an active real estate license and should not be done by an unlicensed TC?

Answer: Negotiating the price or terms of the contract with the other party

Negotiating terms is licensed activity, while administrative work like deadline tracking and file management usually is not.

Under FIRPTA, what is the general withholding rate when a foreign person sells U.S. real property?

Answer: 15% of the amount realized

FIRPTA generally requires the buyer to withhold 15% of the amount realized, with reduced rates or exemptions in some residential cases.

Why do settlement parties screen transaction participants against the OFAC Specially Designated Nationals list?

Answer: U.S. persons are prohibited from doing business with sanctioned individuals and entities

OFAC sanctions bar U.S. persons from transacting with listed parties, so a match must be resolved before closing.

A brokerage wants to cold-call phone numbers to find new sellers. What must it do under federal telemarketing rules?

Answer: Scrub calling lists against the National Do Not Call Registry at least every 31 days

The Telemarketing Sales Rule requires sellers to access the National DNC Registry at least every 31 days, and permitted calling hours are 8 a.m. to 9 p.m.