Legal, Regulatory & Ethical Standards Flashcards
7 cards from real REA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Legal, Regulatory & Ethical Standards flashcards as text
The Home Mortgage Disclosure Act (HMDA) requires lenders to collect and report data on mortgage applications primarily to:
Answer: Help identify potential discriminatory lending patterns and inform housing policy
HMDA data allows regulators, community groups, and the public to identify whether lenders are serving their communities and to detect potential discriminatory patterns.
In real estate ethics, 'conflict of interest' arises when an analyst:
Answer: Has a personal or financial interest that could impair their objectivity in a professional engagement
A conflict of interest exists when personal or financial interests could compromise — or appear to compromise — the analyst's professional judgment or objectivity.
Under Regulation Z, what is the right of rescission?
Answer: A borrower's right to cancel certain non-purchase mortgage transactions within three business days
Regulation Z gives borrowers the right to cancel certain non-purchase mortgage transactions (such as refinances and home equity loans) within three business days of closing.
Which type of zoning variance allows a property owner to deviate from specific zoning requirements because strict compliance would cause undue hardship?
Answer: Area (dimensional) variance
An area or dimensional variance permits a property owner to deviate from specific dimensional standards (such as setbacks or height) when strict compliance would cause undue hardship.
The Superfund law (CERCLA) imposes liability for environmental cleanup costs on which parties?
Answer: Current owners, past owners, operators, and parties who transported hazardous waste to the site
CERCLA imposes strict, joint and several liability on current and past owners/operators of contaminated sites and generators/transporters of hazardous substances.
A real estate professional who induces a client to make unnecessary transactions primarily to generate commissions is engaging in:
Answer: Churning
Churning is the unethical and potentially illegal practice of encouraging excessive transactions to generate commissions at the expense of the client's financial interests.
Under NAR's Code of Ethics, Article 1 requires REALTORS® to:
Answer: Protect and promote the interests of their client while treating all parties honestly
NAR's Code of Ethics Article 1 obligates REALTORS® to protect and promote their clients' interests while also being honest with all parties in the transaction.