CA Real Estate Exam CH 1-15 Questions and Answers

CA Real Estate Exam CH 1-15 Questions and Answers Filing an OFHEO complaint. - Complaints alleging fair housing violations must be filed with the Office of Fair Housing and Equal Opportunity within one year of the violation. HUD then initiates an investigation in conjunction with federal or local enforcement authorities. Filing suit. - In addition to or instead of filing a complaint with HUD, a party may file suit in state or federal court within two years of the alleged violation. If discrimination is confirmed in court, the aggrieved party can seek: -Injunctive relief (restraining order); -Actual damages; -Punitive damages Fair financing laws. - Parallel anti-discrimination and consumer protection laws have been enacted in the mortgage financing field to promote equal opportunity in housing. Equal Credit Opportunity Act (ECOA) - Enacted in 1974, the Equal Credit Opportunity Act requires lenders to be fair and impartial in determining who qualifies for a loan. A lender may not discriminate on the basis of race, color, religion, national origin, sex, marital status, or age. The act also requires lenders to inform prospective borrowers who are being denied credit the reasons for the denial Home Mortgage Disclosure Act. - This statute requires lenders involved with federally guaranteed or insured loans to exercise impartiality and non-discrimination in the geographical distribution of their loan portfolio. In other words, the act is designed to prohibit redlining. It is enforced in part by requiring lenders to report to authorities where they have placed their loans. Duties to clients: - Honestly representing market value and property condition. Respecting rights and duties of other client-agent relationships. Submitting all offers. Avoiding commingling and conversion. Keeping transaction documents current. Disclosure: - -That the agent is going to receive compensation from more than one party in a transaction. -Property defects if they are reasonably apparent; however there is no duty to disclose a defect which it would require technical expertise to discover. -Any interest the agent has in a listed property if the agent is representing a party concerning the property. -Any profits made on a client's money. The agent's identity in advertisements. Professional relationships: - -Forgo pursuit of unfair advantage. -Arbitrate rather than litigate disputes. -Respect the agency relationships of others. -Conform to accepted standards of co-brokerage practices