Practice Test Geeks(REA) Real Estate Analyst Certification Practice Test
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Legal, Regulatory & Ethical Standards Flashcards

7 cards from real REA practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Legal, Regulatory & Ethical Standards flashcards as text

  1. Which of the following best describes 'steering' as a prohibited practice under fair housing laws?

    Answer: Directing prospective buyers toward or away from neighborhoods based on their protected class

    Steering is the illegal practice of guiding homebuyers toward or away from certain neighborhoods based on their race, religion, national origin, or other protected characteristics.

  2. A Qualified Opportunity Zone (QOZ) investment under the Tax Cuts and Jobs Act of 2017 allows investors to defer capital gains taxes by investing in:

    Answer: Low-income communities certified by state governors and the Treasury

    QOZs are low-income census tracts nominated by governors and certified by the U.S. Treasury; investments through Qualified Opportunity Funds in these zones receive capital gains tax deferral.

  3. Which environmental law requires sellers of pre-1978 residential properties to disclose known lead-based paint hazards?

    Answer: Title X of the Housing and Community Development Act

    Title X requires sellers and landlords of pre-1978 housing to disclose known lead-based paint and lead-based paint hazards before sale or lease.

  4. An analyst who holds the CFA designation is primarily bound by ethics standards set by:

    Answer: CFA Institute

    CFA charterholders must adhere to the CFA Institute Code of Ethics and Standards of Professional Conduct.

  5. Under FIRPTA (Foreign Investment in Real Property Tax Act), when a foreign person sells U.S. real property, the buyer is required to:

    Answer: Withhold 15% of the amount realized and remit it to the IRS

    FIRPTA requires buyers to withhold 15% of the amount realized on the sale of U.S. real property by a foreign person and remit it to the IRS.

  6. Blockbusting in real estate is an illegal practice that involves:

    Answer: Inducing property owners to sell by exploiting fears about demographic changes in a neighborhood

    Blockbusting is the illegal practice of inducing panic selling by suggesting that members of a protected class are moving into a neighborhood, causing property values to decline.

  7. Which of the following is the correct description of a 'fiduciary duty' owed by a real estate agent to their client?

    Answer: A legal obligation to act in the best interest of the client, including duties of loyalty, disclosure, confidentiality, obedience, and accounting

    A fiduciary duty in real estate encompasses loyalty, confidentiality, disclosure, obedience, reasonable care, and accounting — all prioritizing the client's best interest.