Regulatory Compliance Flashcards

A broker's escrow account is found to be short due to an accounting error, not intentional theft. This is best described as:

Answer: Negligent trust fund handling

A shortage caused by accounting errors rather than deliberate misappropriation is typically classified as negligent trust fund handling, though it still subjects the broker to disciplinary action.

Under the Telephone Consumer Protection Act (TCPA), real estate agents must comply with the National Do Not Call Registry by:

Answer: Not calling numbers on the registry unless an established business relationship exists

The TCPA prohibits telemarketing calls to numbers on the National Do Not Call Registry unless the caller has an established business relationship or prior written consent.

Which of the following best describes 'steering' under fair housing law?

Answer: Directing buyers toward or away from neighborhoods based on protected class characteristics

Steering is the illegal practice of guiding prospective buyers or renters toward or away from specific neighborhoods based on race, religion, or other protected class characteristics.

A landlord refuses to rent to a family with children under age 18 in a building that is not designated as housing for older persons. This is:

Answer: A violation of the Fair Housing Act's familial status protections

Refusing to rent to families with children under 18 violates the Fair Housing Act unless the property qualifies as housing for older persons under the Act's exemptions.

A licensee who continues to practice after their license has expired is subject to:

Answer: Criminal and civil penalties, plus potential license denial upon renewal

Practicing real estate with an expired license is unlicensed practice, which can result in criminal charges, civil liability, and administrative consequences including denial of license renewal.

Under the Residential Lead-Based Paint Hazard Reduction Act, sellers of pre-1978 homes must:

Answer: Provide buyers with a 10-day period to conduct a lead inspection

Federal law requires sellers of pre-1978 housing to provide an EPA pamphlet, disclose known lead hazards, and give buyers a 10-day opportunity to conduct an inspection.

A licensee who uses a team name in advertising without identifying the supervising broker is most likely violating:

Answer: State advertising disclosure requirements

Most state licensing laws require that all advertising by a licensee or team clearly identify the responsible supervising broker to avoid consumer confusion.