REA Legal, Regulatory & Ethical Standards 3

Question 1

Which of the following best describes 'steering' as a prohibited practice under fair housing laws?

Accepted Answer

Directing prospective buyers toward or away from neighborhoods based on their protected class

Answer

Steering is the illegal practice of guiding homebuyers toward or away from certain neighborhoods based on their race, religion, national origin, or other protected characteristics.

Question 2

A Qualified Opportunity Zone (QOZ) investment under the Tax Cuts and Jobs Act of 2017 allows investors to defer capital gains taxes by investing in:

Accepted Answer

Low-income communities certified by state governors and the Treasury

Answer

QOZs are low-income census tracts nominated by governors and certified by the U.S. Treasury; investments through Qualified Opportunity Funds in these zones receive capital gains tax deferral.

Question 3

Which environmental law requires sellers of pre-1978 residential properties to disclose known lead-based paint hazards?

Accepted Answer

Title X of the Housing and Community Development Act

Answer

Title X requires sellers and landlords of pre-1978 housing to disclose known lead-based paint and lead-based paint hazards before sale or lease.

Question 4

An analyst who holds the CFA designation is primarily bound by ethics standards set by:

Accepted Answer

CFA Institute

Answer

CFA charterholders must adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct.

Question 5

Under FIRPTA (Foreign Investment in Real Property Tax Act), when a foreign person sells U.S. real property, the buyer is required to:

Accepted Answer

Withhold 15% of the amount realized and remit it to the IRS

Answer

FIRPTA requires buyers to withhold 15% of the amount realized on the sale of U.S. real property by a foreign person and remit it to the IRS.

(REA) Real Estate Analyst Certification Practice Test

(REA) Real Estate Analyst Certification Practice Test

REA Legal, Regulatory & Ethical Standards 3