Real Estate Real Estate Law & Regulations

Question 1

Blockbusting is an illegal practice in which real estate agents:

Accepted Answer

Induce homeowners to sell by suggesting minority groups are moving in, causing property values to decline

Answer

Purchase foreclosed properties in bulk

Answer

Block new developments from being built

Answer

Refuse to show properties in certain areas

Question 2

Steering in real estate refers to an agent's illegal practice of:

Accepted Answer

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

Answer

Recommending a specific lender to a buyer

Answer

Negotiating the price on behalf of clients

Answer

Driving clients to property showings

Question 3

Redlining is an illegal discriminatory practice in which lenders:

Accepted Answer

Deny or limit loans in minority neighborhoods based on race or national origin

Answer

Charge higher rates to investors

Answer

Require higher down payments for new construction

Answer

Refuse to lend on properties below a minimum value

Question 4

The primary role of a title company in a real estate transaction is to:

Accepted Answer

Search title records, issue title insurance, and facilitate closing

Answer

Appraise the property's market value

Answer

Provide mortgage financing

Answer

Manage the property after sale

Question 5

Owner's title insurance protects the:

Accepted Answer

Buyer's equity against title claims arising from pre-existing defects

Answer

Lender against title defects

Answer

Seller against post-closing claims

Answer

Title company against errors

Question 6

Which federal law prohibits discrimination in residential real estate transactions based on race, color, national origin, religion, sex, familial status, and disability?

Accepted Answer

Fair Housing Act of 1968

Answer

Equal Credit Opportunity Act

Answer

Americans with Disabilities Act

Answer

Community Reinvestment Act