Real Estate 84 Chapter 3 Real Estate Practice Quiz
1. A real estate broker refuses to represent a paraplegic buyer, citing the difficulty in locating an
appropriate house for her. He could be punished under all of these statutes, except the:
A. Federal Fair Housing Act
B. Fair Employment and Housing Act
C. Unruh Civil Rights Act
D. Americans with Disabilities Act
Correct Answer: D
Explanation: The Americans with Disabilities Act is primarily concerned with ensuring
accessibility to public facilities for disabled persons. Discrimination against a disabled person
seeking housing would be prohibited under the Fair Housing Act and California's Unruh Civil
Rights Act and Fair Employment and Housing Act.
2. A salesperson is listing a property in a mostly Hispanic neighborhood that is owned by
Hispanic sellers. He advertises the property in several Spanish-language community
newspapers, thinking the most likely buyers would already be renting in the neighborhood. What
additional step would best help him avoid charges of discrimination?
A. Distribute flyers around the neighborhood
B. Advertise the property in newspapers of general circulation
C. Go door-to-door in the neighborhood and ask residents to refer potential buyers to him
D. Mail Spanish-language flyers to other Hispanic neighborhoods
Correct Answer: B
Explanation: His best option would be to advertise the property in a newspaper that is
distributed throughout the metropolitan area and reaches a diverse readership.
3. A landowner and the government agree upon a Habitat Conservation Plan before the
landowner begins development of a subdivision. What law is the landowner complying with?
A. Endangered Species Act
B. CERCLA
C. NEPA
D. California Coastal Act
Correct Answer: A
Explanation: The Endangered Species Act attempts to protect habitats of animals listed as
threatened or endangered. A landowner may develop in such an area only if he or she agrees to
a Habitat Conservation Plan and takes measures to minimize harm to the habitat.
4. A salesperson obtains several listings by going door-to-door in a neighborhood and warning
residents that property values will drop once members of minority groups begin moving into the
neighborhood. This would be considered:
A. steering
, B. inducement
C. blockbusting
D. undue influence
Correct Answer: C
Explanation: Blockbusting, or panic selling, is the act of obtaining listings by predicting adverse
consequences when members of minorities move into a neighborhood. This is prohibited under
the Fair Housing Act.
5. Which of the following actions would be characterized as steering?
A. Warning homeowners about minorities moving into a neighborhood in order to generate
listings
B. Refusing to lend money in particular neighborhoods, based on their racial composition
C. Refusing to show properties in white neighborhoods to minority buyers
D. Charging a higher rent for non-white tenants than for white tenants
Correct Answer: C
Explanation: Steering is channeling prospective buyers or tenants toward or away from
particular neighborhoods because of their race (or other protected characteristic). This is
prohibited under the Fair Housing Act.
6. Which of the following actions would not be a violation of California's antidiscrimination laws?
A. Refusal to make a counteroffer in response to a clearly frivolous offer
B. Refusal to make a counteroffer because the offeror is African-American
C. Requiring a larger downpayment from an African-American buyer
D. Making a more extensive inquiry into the financial condition of an African-American loan
applicant
Correct Answer: A
Explanation: A seller may refuse to negotiate with a buyer, but may not do so for discriminatory
reasons.
7. An agent is inspecting the exterior of a property on a hillside, and notices cracks in the soil,
areas of slumping ground, and tilting trees. These are warning signs that the property is at high
risk for:
A. flooding
B. earthquakes
C. landslides
D. radon
Correct Answer: C
Explanation: A property next to a cliff or sloping ground that shows signs of soil erosion or
cracks and dips in the soil is at high risk for landslides, and may not be suitable for building. A
geologist should be consulted for an evaluation of the threat to any buildings on the property.
1. A real estate broker refuses to represent a paraplegic buyer, citing the difficulty in locating an
appropriate house for her. He could be punished under all of these statutes, except the:
A. Federal Fair Housing Act
B. Fair Employment and Housing Act
C. Unruh Civil Rights Act
D. Americans with Disabilities Act
Correct Answer: D
Explanation: The Americans with Disabilities Act is primarily concerned with ensuring
accessibility to public facilities for disabled persons. Discrimination against a disabled person
seeking housing would be prohibited under the Fair Housing Act and California's Unruh Civil
Rights Act and Fair Employment and Housing Act.
2. A salesperson is listing a property in a mostly Hispanic neighborhood that is owned by
Hispanic sellers. He advertises the property in several Spanish-language community
newspapers, thinking the most likely buyers would already be renting in the neighborhood. What
additional step would best help him avoid charges of discrimination?
A. Distribute flyers around the neighborhood
B. Advertise the property in newspapers of general circulation
C. Go door-to-door in the neighborhood and ask residents to refer potential buyers to him
D. Mail Spanish-language flyers to other Hispanic neighborhoods
Correct Answer: B
Explanation: His best option would be to advertise the property in a newspaper that is
distributed throughout the metropolitan area and reaches a diverse readership.
3. A landowner and the government agree upon a Habitat Conservation Plan before the
landowner begins development of a subdivision. What law is the landowner complying with?
A. Endangered Species Act
B. CERCLA
C. NEPA
D. California Coastal Act
Correct Answer: A
Explanation: The Endangered Species Act attempts to protect habitats of animals listed as
threatened or endangered. A landowner may develop in such an area only if he or she agrees to
a Habitat Conservation Plan and takes measures to minimize harm to the habitat.
4. A salesperson obtains several listings by going door-to-door in a neighborhood and warning
residents that property values will drop once members of minority groups begin moving into the
neighborhood. This would be considered:
A. steering
, B. inducement
C. blockbusting
D. undue influence
Correct Answer: C
Explanation: Blockbusting, or panic selling, is the act of obtaining listings by predicting adverse
consequences when members of minorities move into a neighborhood. This is prohibited under
the Fair Housing Act.
5. Which of the following actions would be characterized as steering?
A. Warning homeowners about minorities moving into a neighborhood in order to generate
listings
B. Refusing to lend money in particular neighborhoods, based on their racial composition
C. Refusing to show properties in white neighborhoods to minority buyers
D. Charging a higher rent for non-white tenants than for white tenants
Correct Answer: C
Explanation: Steering is channeling prospective buyers or tenants toward or away from
particular neighborhoods because of their race (or other protected characteristic). This is
prohibited under the Fair Housing Act.
6. Which of the following actions would not be a violation of California's antidiscrimination laws?
A. Refusal to make a counteroffer in response to a clearly frivolous offer
B. Refusal to make a counteroffer because the offeror is African-American
C. Requiring a larger downpayment from an African-American buyer
D. Making a more extensive inquiry into the financial condition of an African-American loan
applicant
Correct Answer: A
Explanation: A seller may refuse to negotiate with a buyer, but may not do so for discriminatory
reasons.
7. An agent is inspecting the exterior of a property on a hillside, and notices cracks in the soil,
areas of slumping ground, and tilting trees. These are warning signs that the property is at high
risk for:
A. flooding
B. earthquakes
C. landslides
D. radon
Correct Answer: C
Explanation: A property next to a cliff or sloping ground that shows signs of soil erosion or
cracks and dips in the soil is at high risk for landslides, and may not be suitable for building. A
geologist should be consulted for an evaluation of the threat to any buildings on the property.
