PrepL Regulatory Compliance 4

Question 1

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

Accepted Answer

Negligent trust fund handling

Answer

Conversion

Answer

Commingling

Answer

Constructive fraud

Question 2

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

Accepted Answer

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

Answer

Only avoiding calls to residential numbers listed for more than 12 months

Answer

Registering their own number on the list

Answer

Sending a written opt-out notice before calling

Question 3

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

Accepted Answer

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

Answer

Encouraging buyers to purchase above their stated budget

Answer

Recommending specific mortgage lenders to buyers

Answer

Advising sellers to accept higher offers over lower ones

Question 4

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:

Accepted Answer

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

Answer

Permissible if stated in the lease agreement

Answer

Only illegal if the building has more than four units

Answer

Legal because landlords can set their own tenant standards

Question 5

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

Accepted Answer

Criminal and civil penalties, plus potential license denial upon renewal

Answer

A warning letter only for a first offense

Answer

Only a renewal late fee with no other consequences

Answer

No penalty if they renew within 30 days

Question 6

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

Accepted Answer

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

Answer

Remove all lead-based paint before closing

Answer

Guarantee the home is lead-free

Answer

Only disclose if lead has been tested and found

Question 7

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

Accepted Answer

State advertising disclosure requirements

Answer

Antitrust regulations

Answer

The Equal Credit Opportunity Act

Answer

RESPA's affiliated business arrangement rules