NAR Real Estate Law & Ethics 3

Question 1

The Real Estate Settlement Procedures Act (RESPA) primarily governs:

Accepted Answer

Settlement costs and procedures for federally related mortgage loans

Answer

RESPA governs settlement costs, disclosures, and prohibited practices for federally related mortgage loan transactions.

Question 2

Under the Equal Credit Opportunity Act (ECOA), a lender may NOT deny credit based on:

Accepted Answer

The borrower's marital status or receipt of public assistance

Answer

ECOA prohibits discrimination in lending based on marital status, receipt of public assistance, and other protected characteristics.

Question 3

A dual agency arrangement occurs when:

Accepted Answer

One agent or brokerage represents both buyer and seller in the same transaction

Answer

Dual agency exists when a single agent or brokerage represents both the buyer and seller in the same transaction.

Question 4

When a contract contains an 'AS IS' clause, the seller:

Accepted Answer

Is still required to disclose known material defects

Answer

An 'AS IS' clause does not eliminate a seller's legal duty to disclose known material defects; it only means the seller won't make repairs.

Question 5

Article 17 of the NAR Code of Ethics requires REALTORS® to:

Accepted Answer

Submit all disputes with other REALTORS® to arbitration rather than litigation

Answer

Article 17 obligates REALTORS® to arbitrate contractual and specific non-contractual disputes with other REALTORS® rather than pursuing litigation.

(NAR) National Association of Realtors Certification Practice Test