5.0 Marketing Regulations Real Estate License Practice Quiz

• A. lead-based paint and provide an EPA-approved information pamphlet
• B. radon gas above EPA action levels
• C. asbestos insulation in the attic
• D. underground storage tanks on the property

The Residential Lead-Based Paint Hazard Reduction Act requires sellers and landlords of pre-1978 housing to disclose known lead hazards and provide buyers with the EPA pamphlet 'Protect Your Family from Lead in Your Home.'

• A. transfer liability for all defects from the seller to the buyer after closing
• B. satisfy the lender's requirement for a professional property appraisal
• C. inform buyers of known material defects so they can make an informed purchasing decision
• D. replace the buyer's obligation to obtain an independent home inspection

The purpose of mandatory seller disclosure is to give buyers information about the property's known condition so they can negotiate or decide whether to proceed.

• A. 2 picocuries per liter (pCi/L)
• B. 4 picocuries per liter (pCi/L)
• C. 10 picocuries per liter (pCi/L)
• D. 25 picocuries per liter (pCi/L)

The EPA action level for radon is 4 pCi/L; at that concentration or above, the agency recommends mitigation to reduce health risk.

• A. a tying arrangement that conditions one service on the purchase of another
• B. a buyer agency agreement with an exclusive representation clause
• C. a net listing that creates a conflict of interest with the buyer
• D. permissible only if the title company is separately incorporated

A tying arrangement conditions the sale of a desired product or service on the purchase of a second product. Conditioning brokerage services on using an affiliated title company may violate antitrust law and also RESPA Section 9.

• A. the broker's state license number in the subject line
• B. the full text of the licensee's agency disclosure statement
• C. an attachment confirming the sender's identity verified by the state commission
• D. a clear and conspicuous way for recipients to opt out of future messages

The CAN-SPAM Act requires that every commercial email contain a clear, conspicuous, and functional mechanism for recipients to opt out of further commercial messages from the sender.

• A. market allocation, a per se violation of federal antitrust law
• B. cooperative marketing permissible under RESPA guidelines
• C. designated agency, a recognized form of buyer and seller representation
• D. an MLS participation agreement approved by the local association

Agreements among competitors to divide markets, whether by geography, client type, or property category, constitute market allocation, treated as a per se violation of the Sherman Antitrust Act.

• A. owns commercial rather than residential property
• B. has given written consent or has an established business relationship within the allowed time frame
• C. lives in a rural area not served by an active MLS
• D. placed the property on the market at any point in the past five years

The established business relationship exemption (generally 18 months from the last transaction or 3 months from an inquiry) and prior written consent both permit contact with registered numbers.

• A. federal Fair Housing Act requirements for psychological impact disclosures
• B. state law, which varies widely on what stigmatizing events must be disclosed
• C. RESPA regulations governing material transaction disclosures
• D. the buyer's real estate agent, who must always volunteer known stigmatizing information

Disclosure obligations for stigmatized properties, murders, suicides, alleged hauntings, vary widely by state statute; some states require disclosure, others explicitly exempt it.