Help
Options
Didn't know it?
click below
click below
Knew it?
click below
click below
Don't Know
Remaining cards (0)
Know
retry
shuffle
restart
0:00
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.
Normal Size Small Size show me how
Normal Size Small Size show me how
REP
Section 3: Key Areas of Concern in Real Estate Practice
| Question | Answer |
|---|---|
| True or False? Martha and Jeb are making offers on several properties, hoping to get one. Because they're only looking for one property, it's acceptable for their brokerage firm to hold a single earnest money check to bind all the offers. | False |
| True or False? The buyer's broker must deposit the earnest money check immediately into the proper trust account. | False |
| True or False? Earnest money belongs to the seller. | False |
| True or False? Earnest money funds are also referred to as escrow funds. | True |
| Comingling | Mixing client funds with personal funds |
| Conversion | Using client trust funds for personal or other business purposes |
| Civil Rights Act of 1866 | Made it illegal to discriminate on the basis of race or color, without exception. |
| Executive Order No. 11063 | Essentially ended segregation in federally funded housing. |
| Civil Rights Act of 1964 | Prohibited discrimination based on race, color, national origin, and religion in programs receiving federal financial assistance. Set the stage for the Fair Housing Act. |
| Fair Housing Act of 1968 | Prohibited discrimination in sale, rental, & financing of housing & housing-related transactions based on race, color, national origin, & religion. Also created Office of Fair Housing & Equal Opportunity (FHEO) under HUD. |
| Housing and Community Development Act of 1974 | Amended the Fair Housing Act of 1968 to add sex to the list of protected classes. |
| Equal Credit Opportunity Act of 1974 | Backed up the Housing and Community Development Act by requiring lenders to give businesses and consumers equal access to credit. |
| Fair Housing Amendments Act | Provided consumers with remedies if they believed they were victims of discrimination in the sale, rental, or financing of housing. This act also added familial status and disability (both physical and mental) to the existing protected classes. |
| Americans with Disabilities Act of 1990 | Prohibits discrimination based on disability in programs, services, and activities provided or made available by public entities. |
| Housing for Older Persons Act of 1995 | States communities & facilities that meet certain criteria for providing housing to older persons are legally exempt from familial status discrimination. |
| Protected Class? Familial status | Protected class |
| Protected Class? Pet owners | Not a protected class |
| Protected Class? Sex | Protected class |
| Protected Class? Smokers | Not a protected class |
| Protected Class? Race | Protected class |
| Protected Class? Disability | Protected class |
| Seven federally protected classes under the Fair Housing Act | Race, color, religion, national origin, sex, disability, familial status |
| Senior Housing Exemption? All of the residents at Shady Pines are at least 62 years old. | Meets exemption requirements |
| Senior Housing Exemption? HUD determined the complex was specifically designed for seniors. | Meets exemption requirements |
| Senior Housing Exemption? Of the residents, 80% are 55 years old or older, and there’s a policy in place to keep it that way. | Meets exemption requirements |
| Senior Housing Exemption? Half of the residents are older than 50, and there are no children. | Doesn't meet exemption requirements |
| Blockbusting | Discriminatory practice of encouraging homeowners to sell below market value because the socioeconomics of the neighborhood is declining. Usually involved race discrimination. |
| Steering | When a real estate agent influences a homebuyer to purchase in certain communities based on their race, therefore limiting the buyer's choices. |
| Redlining | A discriminatory lending practice dating back to the 1930s when lenders would draw red lines on maps around neighborhoods that they would deem "high risk." Usually involved race discrimination. |
| Redlining, Blockbusting, or Steering? When working with African-American clients, Nancy makes an effort to show them homes in primarily African-American communities. | Steering |
| Redlining, Blockbusting, or Steering? Nancy encourages residents to sell now and avoid declining house values that are likely to accompany an influx of minorities. | Blockbusting |
| Redlining, Blockbusting, or Steering? A lending company denies all loans for properties south of the river because of the demographics of the area. | Redlining |
| Multiple Listing Service (MLS) | A shared database of real estate data and information. |
| Should you take a photo? Front exterior of home | Take photo |
| Should you take a photo? Dog house | Don’t take photo |
| Should you take a photo? Master bedroom | Take photo |
| Should you take a photo? Master bathroom | Take photo |
| Should you take a photo? Kitchen | Take photo |
| Should you take a photo? Water heater and furnace | Don’t take photo |
| Buyer Action to Protect Rights? File a complaint with HUD | Buyer Action to Protect Rights |
| Buyer Action to Protect Rights? File a complaint with a state fair housing agency | Buyer Action to Protect Rights |
| Buyer Action to Protect Rights? File a complaint with NAR | Buyer Action to Protect Rights |
| Buyer Action to Protect Rights? Accuse Sebastian of discrimination on social media | Not a Buyer Action to Protect Rights |
| Buyer Action to Protect Rights? Notify the local newspaper of the situation | Not a Buyer Action to Protect Rights |
| Puffing | Legal exaggeration, not meant to be taken at face value |
| Negligence | Failing in the duty of care |
| Negligent Misinterpretation | Making a statement the licensee should have known was false |
| Passive Fraud | Intentional nondisclosure of a known fact |
| Active Fraud | Intentional misstatement of a material fact |
| True or False? Clients often sue their agents when agents didn’t disclose something they should have known. | True |
| True or False? Clients often sue their agents for disclosing material information. | False |
| True or False? An agent who fails to recommend a home inspection to his buyer client in order to prevent a sale from falling through is guilty of fraud. | True |
| True or False? Intentional misrepresentation includes omission of a material fact. | True |
| Deceptive or Unfair Ad? Omits material information or contains statements that are important and are likely to mislead consumers acting reasonably. | Deceptive ad |
| Deceptive or Unfair Ad? Causes or is likely to cause substantial consumer injury that couldn't be reasonably avoided and that isn't outweighed by the benefits. | Unfair ad |
| Violation of FTC rules? Corrine is selling an older home and decides to list the old furnace that was recently repaired as a “brand new furnace.” | A Violation |
| Violation of FTC rules? Jessica put out a new advertisement for a property that has a small pond out front. The ad claims “Waterfront Property!” She adds a winking smiley face to the ad so people will get the humor. | A Violation |
| Violation of FTC rules? Nancy has been busy selling her listings and left a few primo listings online, even though they sold, to generate interest for her services. | A Violation |
| Adware | Software that displays advertising on a computer. Sometimes it runs with the user’s knowledge, and sometimes it runs without the user’s knowledge. May monitor browsing activities and relay that information to a marketer. |
| Back-ups | An extra copy of computer files, usually kept in a separate physical space from the original. Very important for recovery when original files are lost or damaged. |
| Bot or web bot | An automated program, such as a Web crawler, that simulates human actions on the Internet. Although often used for legitimate purposes (such as by search engines), a web bot can be used to take control of computers, launch attacks, or compromise data. |
| Cloning | Copying or replicating (usually a website) for the purpose of obtaining money or data from unsuspecting users. |
| Cloud | A way to store and access data over the Internet instead of a computer’s hard drive. A cloud is actually space on the Internet. |
| Cookie | A small text file that is placed on a computer when the user visits a website. It is used to remember the user’s preferences or track browsing activities. These are not programs and cannot read hard drives or cause damage to the computer. |
| Data Breach | Unauthorized access to confidential information |
| Data Disposal | Dumping of data |
| Email Encryption and Internet Activity | A security measure that turns information into indecipherable code; often used to make online purchasing secure. |
| Firewalls | Hardware/software devices that control network access & contact between a network & Internet, or between one part of network & another. Personal firewalls also used to block hackers & unauthorized traffic, while allowing access to authorized traffic. |
| Http/https | Hypertext transfer protocol/hypertext transfer protocol, secure. Websites with an S use encryption and/or authentication measures. |
| Hacker | A person who uses programming skills or technical knowledge to gain unauthorized access to computer systems for malicious or criminal purposes. |
| Keylogger | Software that captures a user’s keystrokes; may be used to gather passwords, user names, or other private information. |
| Lock Wireless Network | Security measures to protect wireless networks from hackers. I.e. changing passwords, changing Service Set ID (SSID), enabling encryption, enabling media access control filtering, limiting # of IP addy's router can assign to devices, blocking wan requests |
| Password Vaults, Storage Tools | Password vaults store encrypted passwords, requiring the user to create a master password which grants the user access to the password database. |
| Password | A first line of protection that prohibits access to a computer, system or network unless the user enters the correct sequence of keys. |
| Phishing | An attempt to mislead people into divulging confidential information (e.g., passwords, Social Security numbers). Phishing uses legitimate-looking email or instant messaging in combination with fake websites to make fraudulent requests for information. |
| Software Updates | Software manufacturers offer software updates to plug discovered security holes. Microsoft is known for its “patch Tuesdays,” during which patches are sent to users for known issues, such as bugs or security holes. |
| Spyware | Software that runs in the background and collects information about a computer and how it is used and sends that information to others over the Internet. It sometimes installs itself on a computer without the user’s knowledge or consent. |
| Trojan Horse | A malicious program that looks like legitimate software that often allows someone else to take over a computer. It may attack data or systems. Unlike viruses and worms, Trojan horses cannot replicate themselves. |
| Virus | A program that can self-replicate and infect files, programs, and operating systems. |
| Worms | A malicious program that can copy and reproduce itself over the Internet using email programs or other transport tools. May cause system and data damage. |
| Malware Scans | Software designed to do harm by causing damage to systems or data, invading privacy, stealing information or gaining unauthorized access. Includes viruses, worms, Trojan horses, spyware, adware, and bots. |
| Should or Shouldn't Do? Leave clients unattended in the office. | Shouldn't |
| Should or Shouldn't Do? Perform software updates. | Should |
| Should or Shouldn't Do? Perform software updates. | Shouldn't |
| Should or Shouldn't Do? Use the versions of websites. | Should |
| Should or Shouldn't Do? Use unsecured wireless networks. | Shouldn't |
| Should or Shouldn't Do? Lock your computer when not in use. | Should |
| Online Rental Scam | Con artists use real estate listing information to fraudulently rent out a property. Even if property is listed for sale, cons will create fake rental ads, collect upfront security deposits from unsuspecting prospective tenants, & take the money and run. |
| Scraping (web scraping) | This is a software technique that harvests listing photos, addresses, and descriptions. Scraping can be used to create very realistic-looking fake rental ads. |
| True or False? Consumers are at risk from online rental scams. | True |
| True or False? Creating Google alerts and “if this, then that” alerts allow you to monitor your online listings for rental scams. | True |
| True or False? If you find that a listing is being used fraudulently, you must contact the FBI to have it removed. | False |
| True or False? There are currently no preventive measures in place for online rental scams. | False |
| Misinterpretation | False statement or omission |
| Negligent Misinterpretation | Inadvertent false statement or omission |
| Fraud | Intentional misrepresentation |
| Earnest money | Buyer deposit to show good faith; seller may use as liquidated damages in case of buyer default |
| MLS | Multiple listing service—a membership-based database of shared property that lists information |
| Deceptive Ad | Any ad in which there is a misrepresentation, omission, or other practice that can mislead a significant number of reasonable consumers to their detriment |
Created by:
StaRacer94
Popular Real Estate sets