Deck 11: Real Estate Marketing Law

Question 1

The ___ is designed to preserve, protect, and develop coastal resources.

Answer 1

Coastal Zone Management Act

Question 2

The ___ was intended to crack down on real estate companies that provide undisclosed kickbacks to each other that often result in inflating the price of real estate transactions.

Answer 2

Real Estate Settlement Procedures Act (RESPA)

Question 3

The Interstate Land Sales Full Disclosure Act (ILSFDA) makes it unlawful to sell subdivision lots over interstate boundaries without having the real estate registered with the ___.

Answer 3

Department of Housing and Urban Development (HUD)

Question 4

The ___ prohibits false, deceptive, and misleading business practices.

Question 5

Which of the following are guidelines lenders must follow under the Equal Credit Opportunity Act (ECOA)?

A) lenders cannot use sex or marital status in credit scoring
B) lenders cannot deny a borrower because of low income
C) lenders cannot discount part-time employment
D) lenders must provide explicit reasons for denying credit
E) lenders cannot inquire about a potential borrower's childbearing capability, intentions, or anticipated absence as a consequence of those

Question 6

Which of the following are responsibilities given to the EPA under the Clean Water Act (CWA)?

A) regulate discharge of waste into navigable waters
B) approve building and operation of public sewage and waste water facilities
C) regulate runoff from agriculture
D) all of the above
E) none of the above

Question 7

What type of residential housing is most impacted by the enforcement of the Clean Air Act?

A) residential housing on the outskirts of urban centers
B) residential housing in highly dense urban areas
C) residential housing in small towns
D) residential housing in the country
E) none of the above

Question 8

Which of the following are ways in which the EPA can regulate transportation to reduce air pollution?

A) discourage developers from building parking spaces
B) promote mass transit
C) promote staggered work hours
D) all of the above
E) none of the above

Question 9

What program was created by the National Flood Insurance Act?

A) the National Flood Insurance Program (NFIP)
B) the Flood Insurance Board (FIB)
C) the Floodplain Insurance Program (FIP)
D) the Flood Insurance Regulatory Program (FIRP)
E) the Flood Research Directive (FRD)

Question 10

What law requires federal agencies to produce and include environmental impact statements in requests for funding?

A) the Clean Air Act
B) the Clean Community Policy Act (CCPA)
C) the National Environmental Policy Act (NEPA)
D) the Environmental Impact Assessment Act (EIAA)
E) the Clean Water Act (CWA)

Question 11

The ___ required by the Real Estate Settlement Procedures Act (RESPA) is a document produced by the U.S. Department of Housing and Urban Development (HUD) that provides information about settlement costs, the standard form used by lenders, escrow accounts, choices that borrowers have in selecting a lender, and unfair lending practices.

Question 12

The Real Estate Settlement Procedures Act (RESPA) requires lenders to provide buyers with an advance disclosure of settlement costs called a ___.

Question 13

The Clean Air Act, the Clean Water Act (CWA), and the Noise Pollution and Abatement Act are all enforced by the ___.

Question 14

The ___ is designed to regulate noise pollution to protect human health and minimize noise annoyance to the general public.

Question 15

___ encourages people to use their vehicles in the city, which exacerbates the problem of air pollution.

Question 16

The National Flood Insurance Act is overseen by the ___ under the auspices of the Department of Housing and Urban Development (HUD)

Question 17

The National Flood Insurance Act created the ___ to provide insurance to real estate property in floodplain communities.

Question 18

The National Environmental Policy Act (NEPA) requires ___ to be included in all requests for government funding.

Question 19

The U.S. Department of Housing and Urban Development (HUD) requires an ___ for real estate developers of federally assisted or insured housing.

Question 20

The ___ prohibits lenders from refusing to sell or rent a residential property to any person because of race, color, religion, sex, familial status, or national origin.

Question 21

Lenders must disclose to borrowers an ___ to help them understand the full cost of a loan.

Question 22

Which of the following individuals can a person refuse to sell or rent a residential property to, even if they are financially qualified?

A) an elderly person who is visibly infirm
B) a foreign immigrant who does not speak English fluently
C) a single expecting mother
D) a recent high school graduate who only works part-time jobs
E) none of the above

Question 23

What was the intent of the Fair Housing Act?

A) to prohibit false, deceptive, and misleading business practices
B) to prohibit lenders from discriminating against any applicant who has the capacity to contract on the basis of race, color, religion, national origin, sex, marital status, or age
C) to require lenders to disclose and explain the terms of loans in understandable language
D) to outlaw discrimination in all housing-related transactions
E) to require real estate developers to make conscious outreach efforts by mandating that a certain percentage of development be done in economically poor areas that are often occupied disproportionately by minorities

Question 24

Which of the following is NOT a provision of the Truth in Lending Act (TILA)?

A) lenders must disclose terms of a loan in understandable terms
B) charges that may be imposed for high-cost mortgages are regulated
C) real estate firms can be prosecuted for false advertising
D) consumers are given the right to cancel transactions involving a lien on consumer's principal dwelling
E) none of the above

Question 25

A lender may deny a potential borrower credit if they are unlikely to continue living long enough to repay the debt.

Question 26

A lender must provide explicit reasons when rejecting a potential borrower's application for credit.

Question 27

A lender may decline a credit application based on the insufficient wages received from an applicant's part-time employment.

Question 28

The Interstate Land Sales Full Disclosure Act makes it illegal to sell subdivision lots over state boundaries without registering with HUD.

Question 29

Lenders in the urban real estate markets are the targets of the Interstate Land Sales Full Disclosure Act.

Question 30

The Deceptive Trade Practices Act prohibits the use of terms such as "8% mortgage."

Question 31

Lying by omission is not considered misrepresentation.

Question 32

The Clean Air Act only applies to industrial sectors and does not impact real estate developers of residential areas.

Question 33

Real estate developers of urban areas are encouraged to exclude parking spaces from their designs.

Question 34

The Truth in Lending Act requires lenders to disclose and explain terms in understandable language.

Question 35

The Truth in Lending Act gives consumers the right to cancel transactions that involve liens on their principal dwelling within three days of completion.

Question 36

What consequences can a lender face for failing to comply with the Equal Credit Opportunity Act (ECOA)?

A) prosecution and a jail sentence of no less than twelve months
B) liability for punitive damages up to $10,000 in individual suits and the lesser of $500,000 or 1% of the lender's net worth in class action suits
C) a nominal fine of no more than $500 that varies from state to state
D) a jail sentence of no less than twelve months and liability for punitive damages up to $10,000
E) censure and government-mandated sensitivity training

Question 37

What is the minimum amount of time a lender must maintain applicant records following notification of denial of credit?

A) one month
B) two years
C) fifteen months
D) ten years
E) a lender is not required to maintain applicant records for any amount of time

Question 38

Which of the following is a legitimate reason to deny a person credit under ECOA?

A) the applicant is a member of a race or ethnicity that based on the lender's experience is less likely to repay the loan
B) the possibility that the applicant's job will end leaving them no way to repay the loan
C) disapproval of the applicant's marital status
D) the applicant is less years away from the average life expectancy than the duration of the credit they are applying for
E) inability to pay off the credit as a result of insufficient income

Question 39

What negative business practice was the Real Estate Settlement Procedures Act (RESPA) intended to resolve?

A) systematically discriminating against minorities attempting to obtain credit for mortgages
B) inflating costs of real estate by appending extraneous and erroneous fees that are accepted without question because of the complexity of contractual language
C) misleading consumers by not adequately explaining all the fees associated with real estate transactions to make the transaction seem more affordable than it is in reality
D) perpetrating fraud across state lines and housing scams that involve the buyer not seeing the property until after the purchase
E) real estate companies giving each other undisclosed kickbacks that ultimately inflate the cost of real estate transactions

Question 40

Under the Interstate Land Sales Full Disclosure Act (ILSFDA), how long does a buyer have to cancel an interstate real estate transaction?

A) until the transaction is finalized or within one week of receiving a disclosure document that contains information about the subdivision
B) up to a year after the transaction is finalized, assuming the buyer has kept proper records with respect to the fraudulent behavior of the real estate developer
C) one day
D) a minimum of seven days
E) ILSFDA does not protect against fraud after its commission, it only decreases the incidents of fraud by promoting transparency in interstate real estate transactions

Question 41

Which governmental agency is responsible for enforcing the Deceptive Trade Practices Act (DTPA)?

A) the Environmental Protection Agency (EPA)
B) the U.S. Department of Housing and Urban Development (HUD)
C) the Federal Trade Commission (FTC)
D) the Bureau of Consumer Financial Protection (CFPB)
E) none of the above

Question 42

The National Flood Insurance Act was amended to make flood insurance mandatory in floodplains.

Question 43

It is illegal to reject male and female renters who wish to cohabitate in an apartment which leases the rooms individually.

Question 44

All real estate developers must have an affirmative fair housing plan under the Fair Housing Law.

Question 45

The EPA may make recommendations, but it is up to the state and local governments whether to take action on them.