Legal, Regulatory & Ethical Standards Flashcards

Under the Americans with Disabilities Act (ADA), which of the following is a public accommodation requirement for commercial real estate?

Answer: Landlords must provide accessible parking if the property has a parking lot

The ADA requires places of public accommodation to provide accessible parking when a parking facility is available, regardless of building age.

What is the primary purpose of RESPA (Real Estate Settlement Procedures Act)?

Answer: To require disclosure of settlement costs and prohibit kickbacks in mortgage transactions

RESPA requires lenders and settlement agents to disclose settlement costs and prohibits kickbacks or referral fees that inflate settlement costs.

A real estate analyst discovers that a developer client is planning to misrepresent a property's flood zone status to buyers. The analyst's ethical obligation is to:

Answer: Refuse to participate and report the misrepresentation to relevant authorities if necessary

Professional ethics require analysts to refuse participation in fraud and, depending on jurisdiction and severity, report material misrepresentations to protect public interest.

Which federal law prohibits discrimination in the sale, rental, and financing of housing based on race, color, national origin, religion, sex, familial status, and disability?

Answer: Fair Housing Act

The Fair Housing Act of 1968, amended in 1988, prohibits housing discrimination based on those seven protected classes.

In a 1031 exchange, which rule governs the timeline for identifying replacement property?

Answer: Replacement property must be identified within 45 days of closing

IRS rules for a 1031 like-kind exchange require the taxpayer to identify replacement property within 45 days of selling the relinquished property.

The term 'redlining' in real estate refers to:

Answer: Illegally denying services to residents of certain areas based on racial or ethnic composition

Redlining is the illegal practice of denying financial services or insurance to neighborhoods based on their racial or ethnic demographics.

Under the Uniform Standards of Professional Appraisal Practice (USPAP), an appraiser's work file must be retained for at least:

Answer: 3 years after the date of the report or 2 years after final disposition of legal proceedings

USPAP requires appraisers to retain their work file for at least five years after preparation or two years after final disposition of any related legal proceeding, whichever is longer — but the standard threshold cited in USPAP is the longer of 5 years or 2 years after legal proceedings.