PrepL Regulatory Compliance 2

Question 1

Under the Fair Housing Act, which of the following is NOT a protected class at the federal level?

Accepted Answer

Source of income

Answer

Source of income is not a federally protected class under the Fair Housing Act, though some states and localities have added it as a protected class.

Question 2

A licensee who discovers a latent defect in a property listed for sale is required to:

Accepted Answer

Disclose it to prospective buyers

Answer

Licensees have a duty to disclose known material defects to prospective buyers, even if the seller prefers it not be disclosed.

Question 3

The Americans with Disabilities Act (ADA) requires that public accommodations be accessible. Which of the following is a public accommodation?

Accepted Answer

Real estate brokerage office

Answer

A real estate brokerage office qualifies as a public accommodation under the ADA and must be accessible to people with disabilities.

Question 4

Which agency enforces the Real Estate Settlement Procedures Act (RESPA)?

Accepted Answer

Consumer Financial Protection Bureau (CFPB)

Answer

The CFPB took over enforcement of RESPA from HUD following the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010.

Question 5

A broker who co-mingles client funds with personal or operating funds is guilty of:

Accepted Answer

Commingling

Answer

Commingling is the illegal practice of mixing client funds with the broker's personal or business funds, and is a violation distinct from conversion.

(PrepL) Preparation for Licensing Practice Test