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

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.

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

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.

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

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.

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

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.

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

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.

(PrepL) Preparation for Licensing Practice Test

(PrepL) Preparation for Licensing Practice Test

PrepL Regulatory Compliance 4