Real Estate Practice Test: Practice of Real Estate

25 practice questions

Choose an answer, then check it under Show answer.

1. Question 1 of 25Medium

   Elena has 14 months remaining on her apartment lease. With her landlord's permission, she transfers the entire remaining term to Marcus and moves out. The landlord does not release Elena from the original lease. What has Elena created?

   1. AA. A sublease of the apartment
   2. BB. A surrender of the lease
   3. CC. An assignment of the lease
   4. DD. A novation of the lease
   Show answer to question 1

   Answer: C. An assignment of the lease

   Transferring the entire remaining lease term is an assignment. Because the landlord did not release Elena, the assignment transfers possession and rights to Marcus but leaves Elena's obligations under the original lease intact.

   Why the other options are wrong

   • AA sublease transfers less than the entire remaining term or leaves the original tenant with a reversionary interest.
   • BA surrender returns the leasehold to the landlord rather than transferring it to another tenant.
   • DA novation would require the landlord to agree to substitute Marcus and release Elena from further liability.

2. Question 2 of 25Easy

   Two competing real estate brokerages agree to charge the same commission rate to all clients. This agreement is:

   1. AA. A standard business practice
   2. BB. Legal if both agree
   3. CC. Price fixing and illegal
   4. DD. Allowed under the Sherman Act
   Show answer to question 2

   Answer: C. Price fixing and illegal

   Price fixing among competitors is a per se violation of antitrust laws, specifically the Sherman Act. It is illegal regardless of the reasonableness of the price or mutual agreement. Such collusion reduces competition and harms consumers.

   Why the other options are wrong

   • APrice fixing is not a standard practice; it is prohibited because it restricts free competition.
   • BMutual agreement does not make price fixing legal; it is illegal by its nature.
   • DThe Sherman Act prohibits price fixing; it does not allow it.

3. Question 3 of 25Medium

   The owner of an occupied four-unit building asks an agent to advertise a vacant unit with the phrase 'Adults only.' The owner believes the small owner-occupied building is exempt from fair housing law. How should the agent respond?

   1. AA. Let the owner publish it; the agent did not write it
   2. BB. Use 'quiet residents only' to express the preference indirectly
   3. CC. Publish it; small owner-occupied rentals are fully exempt
   4. DD. Refuse it; ad rules bar protected-class preferences
   Show answer to question 3

   Answer: D. Refuse it; ad rules bar protected-class preferences

   Some owner-occupied housing transactions may qualify for a federal exemption, but the Fair Housing Act still prohibits discriminatory advertising. 'Adults only' states a familial-status preference, and using the owner as publisher or indirect wording does not cure the advertisement.

   Why the other options are wrong

   • AAn agent may not facilitate a prohibited advertisement merely because the owner supplied the words.
   • BIndirect language can still convey an unlawful preference and mislead consumers.
   • CA possible transaction exemption is not complete and does not override the advertising prohibition.

4. Question 4 of 25Medium

   A property sells for $625,000 under an agreement calling for a 5.6% total commission. The listing broker and buyer's broker split the commission equally, and the buyer's broker pays the selling salesperson 65% of that broker's share. How much is paid to the selling salesperson?

   1. AA. $11,375
   2. BB. $10,500
   3. CC. $17,500
   4. DD. $12,250
   Show answer to question 4

   Answer: A. $11,375

   Multiply the selling price by the commission rate, then divide the result equally between the two brokers. The selling salesperson receives 65% of the buyer broker's $17,500 share.

   Why the other options are wrong

   • BThis result uses 60% of $17,500 instead of the agreed 65% split.
   • CThis is the buyer broker's full share before applying the salesperson's 65% split.
   • DThis result uses 70% of $17,500 instead of the agreed 65% split.

5. Question 5 of 25Medium

   On Monday, Malik requests a valuation through an agent's website and provides his residential telephone number. When the agent calls that afternoon, Malik asks to be placed on that agent's do-not-call list. Six weeks later, the same agent makes an unsolicited marketing call to that number to offer listing services. How should the later call be evaluated?

   1. AA. It is allowed because the inquiry occurred within the past three months.
   2. BB. It violates the entity-specific do-not-call request, despite the recent inquiry
   3. CC. It is allowed because submitting a telephone number through the website counts as written permission for marketing calls.
   4. DD. It violates CAN-SPAM because the agent obtained the telephone number through a website.
   Show answer to question 5

   Answer: B. It violates the entity-specific do-not-call request, despite the recent inquiry

   An inquiry may support an established business relationship permitting marketing calls for three months, but a consumer's request to stop calls from that business overrides that relationship. FCC rules require honoring the request within a reasonable time, not exceeding 10 business days. Six weeks exceeds that deadline, so the unsolicited marketing call to Malik's residential number violates his request. CAN-SPAM governs commercial email, while separate telephone rules govern this call.

   Why the other options are wrong

   • AAn inquiry may support a three month established business relationship, but it does not override a request to stop calls from that business.
   • CProviding a telephone number on a website does not by itself constitute signed written permission for marketing calls or cancel a later request to stop calls.
   • DCAN-SPAM regulates commercial email. Obtaining a telephone number through a website does not bring a telephone marketing call under that law.

6. Question 6 of 25Easy

   Which of the following is a protected class under federal fair housing law?

   1. AA. Educational background
   2. BB. Occupation
   3. CC. Income level
   4. DD. Religion
   Show answer to question 6

   Answer: D. Religion

   The Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability. Occupation, income, and education are not protected classes.

   Why the other options are wrong

   • AEducational background is not a protected class under federal fair housing law.
   • BOccupation is not a protected class under federal fair housing law.
   • CIncome level is not a protected class under federal fair housing law.

7. Question 7 of 25Medium

   A real estate brokerage firm employs a salesperson. While acting within the scope of that employment, the salesperson negligently misrepresents a property's square footage to a buyer without the firm's knowledge. The buyer reasonably relies on the misrepresentation, suffers financial loss, and sues the firm. Under ordinary common law agency principles, which statement best describes the firm's liability?

   1. AA. The firm is liable only if it failed to supervise the salesperson adequately.
   2. BB. The firm is liable only if it ratified the misrepresentation.
   3. CC. The firm is not liable because it lacked knowledge of the misrepresentation.
   4. DD. The firm can be held vicariously liable for the salesperson's misrepresentation even without knowledge of it.
   Show answer to question 7

   Answer: D. The firm can be held vicariously liable for the salesperson's misrepresentation even without knowledge of it.

   Under ordinary common law agency principles, an employer can be held vicariously liable for an employee's tort committed within the scope of employment. Here, the salesperson's negligent misrepresentation occurred within that scope. This vicarious liability does not require the firm's knowledge, authorization, ratification, or negligent supervision.

   Why the other options are wrong

   • ABecause the salesperson was an employee acting within the scope of employment, the firm's vicarious liability does not require proof of inadequate supervision.
   • BRatification is not required for an employer's vicarious liability when an employee commits a tort within the scope of employment.
   • CThe firm's lack of knowledge does not prevent vicarious liability for its employee's tort committed within the scope of employment.

8. Question 8 of 25Medium

   At a residential closing on August 15, annual property taxes of $4,380 have already been paid by the seller for the calendar year. The parties use a 365-day year, and the day of closing belongs to the buyer. What tax proration should appear on the settlement statement?

   1. AA. $1,680 debit to the buyer and credit to the seller
   2. BB. $1,668 debit to the buyer and credit to the seller
   3. CC. $1,656 debit to the buyer and credit to the seller
   4. DD. $2,712 debit to the buyer and credit to the seller
   Show answer to question 8

   Answer: B. $1,668 debit to the buyer and credit to the seller

   The 365-day method produces an exact daily tax of $12. Because the seller prepaid the full year, the buyer reimburses the seller for the 139 days beginning on the August 15 closing date, creating a buyer debit and seller credit.

   Why the other options are wrong

   • AUsing 140 days gives $1,680, but the buyer owns 139 days under the stated convention.
   • CUsing 138 days gives $1,656 and omits one day owed by the buyer.
   • D$2,712 is the seller's 226-day share, rather than the buyer's reimbursable 139-day share.

9. Question 9 of 25Easy

   A property owner signs a management agreement authorizing an individual to find tenants, collect rent, and arrange repairs. In that relationship, the property manager acts primarily as the agent of whom?

   1. AA. The lender that holds a mortgage on the managed real estate.
   2. BB. The owner who hired the manager under the management agreement.
   3. CC. The contractor who performs repairs at the direction of the property manager.
   4. DD. The prospective tenants who submit applications to the managed property.
   Show answer to question 9

   Answer: B. The owner who hired the manager under the management agreement.

   The management agreement makes the owner the principal and the property manager the owner's agent. The manager's authority to deal with tenants, contractors, and others is exercised on the owner's behalf and remains subject to the agreement and applicable law.

   Why the other options are wrong

   • AThe lender is not the property manager's principal unless a separate agency agreement creates that relationship.
   • CThe contractor is a third party hired to perform work and does not become the manager's principal.
   • DTenants are customers or lease parties, not the manager's principal under the management agreement.

10. Question 10 of 25Medium

    For an existing place of public accommodation in a commercial office building, which area has first priority under the Department of Justice’s recommended order for readily achievable barrier removal under Title III of the ADA?

    1. AA. Providing access to interior areas where goods and services are offered
    2. BB. Providing access to private employee break rooms and administrative supply closets
    3. CC. Providing access to the facility from sidewalks, parking, and public transit
    4. DD. Providing accessible public restrooms
    Show answer to question 10

    Answer: C. Providing access to the facility from sidewalks, parking, and public transit

    Under 28 CFR 36.304(c), the Department of Justice recommends first providing access to the facility from public sidewalks, parking, or public transportation. This barrier-removal duty applies to existing places of public accommodation, not to commercial facilities solely because they are commercial, and is limited to measures that are readily achievable, meaning easily accomplishable without much difficulty or expense. Access to areas where goods and services are offered is second, access to public restrooms is third, and other necessary measures, such as providing accessible drinking fountains, are fourth.

    Why the other options are wrong

    • AAccess to interior areas where goods and services are offered is the second recommended priority, after access to the facility.
    • BAccess to private employee break rooms and administrative supply closets is not the first recommended priority for public accommodation barrier removal.
    • DAccess to public restrooms is the third recommended priority, after access to the facility and to areas where goods and services are offered.

11. Question 11 of 25Medium

    A brokerage that serves walk-in clients has a doorway too narrow for a wheelchair. A prospective client requests an in-person consultation, and a permanent structural change cannot be completed that day. What response best applies the Americans with Disabilities Act?

    1. AA. Schedule the client's consultation after the doorway is widened, because permanent access must precede an in-person consultation.
    2. BB. Offer an accessible meeting location while determining whether barrier removal is readily achievable
    3. CC. Arrange the consultation at the brokerage on the condition that the client brings a companion to assist with entry.
    4. DD. Offer a telephone consultation instead of assessing barrier-removal, because access improvements can wait until renovation funds are budgeted.
    Show answer to question 11

    Answer: B. Offer an accessible meeting location while determining whether barrier removal is readily achievable

    A brokerage office open to the public is generally a place of public accommodation under Title III of the ADA. It must make reasonable modifications to policies, practices, and procedures unless doing so would fundamentally alter its services. It must also remove existing architectural barriers when removal is readily achievable, meaning easily accomplishable without much difficulty or expense. An accessible meeting location addresses the immediate access problem while the brokerage assesses barrier-removal. This interim arrangement does not replace required readily achievable barrier-removal. When removal is not readily achievable, the brokerage must provide services through alternative methods if those methods are readily achievable.

    Why the other options are wrong

    • APermanent structural work need not precede an accessible in-person consultation at another location. Delaying the consultation does not address the client's immediate access needs.
    • CThe brokerage cannot condition service on the client bringing a companion to overcome an architectural barrier.
    • DOffering telephone service does not eliminate the duty to assess readily achievable barrier-removal. That standard considers difficulty and expense, not merely whether renovation funds have been budgeted.

12. Question 12 of 25Medium

    A prospective tenant suspects housing discrimination during a property tour. Rather than filing an administrative complaint through HUD, the tenant decides to file an independent civil lawsuit in federal court. What is the statutory time limit to file this private court action?

    1. AA. Within 90 days of the alleged discriminatory act
    2. BB. Within 2 years of the alleged discriminatory act
    3. CC. Within 180 days of the alleged discriminatory act
    4. DD. Within 1 year of the alleged discriminatory act
    Show answer to question 12

    Answer: B. Within 2 years of the alleged discriminatory act

    Under the federal Fair Housing Act, an aggrieved person may file a private civil lawsuit in federal or state court within two years of the occurrence or termination of the alleged discriminatory practice. The one-year deadline applies to filing an administrative complaint with HUD, while 180 days is frequently confused with certain employment discrimination deadlines.

    Why the other options are wrong

    • AThis confuses the 90-day period for an employment discrimination lawsuit after receipt of an EEOC right-to-sue notice with the two-year deadline for a private Fair Housing Act lawsuit.
    • CThis confuses the standard 180-day deadline for filing an employment discrimination charge with the EEOC with the two-year deadline for a private Fair Housing Act lawsuit.
    • DThe one-year deadline applies to filing an administrative complaint with HUD, not an independent civil lawsuit. A private Fair Housing Act lawsuit generally has a two-year filing deadline.

13. Question 13 of 25Medium

    An owner resides in one unit of a duplex and leases out the second unit without a real estate licensee. The owner rejects an applicant solely on the basis of race. Why is this rejection a violation of federal law?

    1. AA. The Mrs. Murphy exemption applies strictly to single-family detached houses.
    2. BB. Duplex rentals automatically trigger mandatory federal oversight under the Equal Credit Opportunity Act
    3. CC. Owner-occupants forfeit their exempt status when leasing to unrelated adults.
    4. DD. The Civil Rights Act of 1866 prohibits racial discrimination in this rental even if a Fair Housing Act exemption applies.
    Show answer to question 13

    Answer: D. The Civil Rights Act of 1866 prohibits racial discrimination in this rental even if a Fair Housing Act exemption applies.

    The Fair Housing Act provides a limited exemption for rental decisions in owner-occupied buildings containing no more than four units. However, 42 U.S.C. § 1982, derived from the Civil Rights Act of 1866, independently prohibits racial discrimination in this rental. The owner therefore cannot reject the applicant because of race.

    Why the other options are wrong

    • AThe owner-occupied exemption can apply to a duplex, not just a single-family detached house.
    • BThe Equal Credit Opportunity Act concerns credit transactions. Renting a duplex does not automatically trigger its application to ordinary tenant selection.
    • CLeasing to unrelated adults does not, by itself, eliminate the Fair Housing Act's owner-occupied exemption.

14. Question 14 of 25Easy

    Harbor View Brokerage purchases coverage for client claims alleging negligent mistakes in purchase forms, even though no employee acted intentionally. What type of coverage is the brokerage purchasing?

    1. AA. A fidelity bond for employee theft
    2. BB. Errors and omissions insurance
    3. CC. General liability insurance policy
    4. DD. A lender's title insurance policy
    Show answer to question 14

    Answer: B. Errors and omissions insurance

    Errors and omissions insurance is designed to respond to claims arising from negligent acts, mistakes, or failures to perform professional services. It is distinct from coverage for theft, bodily injury or property damage, and defects in title.

    Why the other options are wrong

    • AA fidelity bond addresses dishonest acts such as employee theft, not an alleged paperwork mistake.
    • CGeneral liability coverage focuses on risks such as bodily injury and property damage rather than transaction-paperwork errors.
    • DLender's title insurance protects the lender against covered title defects, not the brokerage's professional negligence.

15. Question 15 of 25Medium

    During a six-month period, an agent directs Asian homebuyers only to neighborhoods with many Asian residents, regardless of their stated preferences, tells Latino sellers that new residents from another racial group will sharply reduce values, and urges them to list quickly. A lender then denies mortgages for comparable homes on streets with higher percentages of Black and Latino residents while approving similar loans elsewhere. Which classification is correct?

    1. AA. The agent is redlining buyers, panic-selling to sellers, and the lender is steering neighborhoods.
    2. BB. The agent is blockbusting buyers, redlining sellers, and the lender is steering individual loan applicants.
    3. CC. The agent is steering both groups, the seller comments are lawful market advice, and the lender is using property type.
    4. DD. The agent is steering buyers, blockbusting sellers, and the lender is redlining neighborhoods.
    Show answer to question 15

    Answer: D. The agent is steering buyers, blockbusting sellers, and the lender is redlining neighborhoods.

    Steering occurs when an agent limits housing choices because of a prospect's protected class. Blockbusting uses fear of protected-class entry to induce sales, while redlining restricts lending based on a neighborhood's racial composition rather than objective credit and property criteria.

    Why the other options are wrong

    • AIt assigns each term to the wrong conduct: buyer channeling is steering, price-fear solicitation is blockbusting, and neighborhood-based denial is redlining.
    • BIt reverses the buyer and seller practices and misidentifies the lender's neighborhood-based policy.
    • CThe seller communication is unlawful blockbusting, and the lender is not applying a neutral property-type criterion.

16. Question 16 of 25Medium

    Under federal standards for safeguarding nonpublic personal information (NPI), which of the following is considered an administrative safeguard?

    1. AA. Installing keycard electronic locks on server room doors
    2. BB. Configuring network firewalls to block unauthorized system intrusions
    3. CC. Encrypting stored electronic files on office computers and external drives
    4. DD. Conducting employee training on data security protocols and acceptable use policies
    Show answer to question 16

    Answer: D. Conducting employee training on data security protocols and acceptable use policies

    Administrative safeguards involve organizational policies, employee training, and management procedures designed to guide human conduct and manage data privacy risks. Physical locks are considered physical safeguards, while encryption and firewalls represent technical safeguards.

    Why the other options are wrong

    • AThis confuses physical access controls with administrative safeguards. Keycard locks restrict entry to a physical space, even though they operate electronically.
    • BThis confuses technical controls with administrative safeguards. Firewalls use technology to control network traffic, rather than training or management procedures to guide employee conduct.
    • CThis confuses technical protection of stored data with administrative safeguards. Encryption protects information through a technological process, rather than employee training or organizational procedures.

17. Question 17 of 25Easy

    A listing agent prepares a comparative market analysis (CMA) for a seller. Because the agent fails to review readily available sales data, the agent overlooks a recent, otherwise appropriate comparable sale. Including that sale would support a lower suggested listing price. This action is most likely a violation of:

    1. AA. Fair housing laws
    2. BB. Truth in advertising regulations
    3. CC. Fiduciary duty of reasonable care
    4. DD. Antitrust laws
    Show answer to question 17

    Answer: C. Fiduciary duty of reasonable care

    A listing agent must exercise reasonable care and diligence when providing services to the seller. Failing to review readily available sales data and overlooking an appropriate comparable sale can produce an unreliable CMA and breach that duty. The facts do not describe discrimination, advertising, or anticompetitive conduct.

    Why the other options are wrong

    • AFair housing laws prohibit unlawful housing discrimination. The facts describe inadequate research for a CMA, not discrimination.
    • BThe scenario describes preparation of a CMA for a seller, not advertising. The failure concerns the agent's care in researching comparable sales.
    • DThe facts show no agreement restraining competition or other anticompetitive conduct. They describe an agent's failure to research appropriate comparable sales.

18. Question 18 of 25Medium

    A real estate agent wants to send an email newsletter to potential clients. Under the CAN-SPAM Act, which of the following is a required element?

    1. AA. The recipient must have given written consent before receiving the email
    2. BB. The subject line must include the word 'advertisement'
    3. CC. The email must include a valid physical postal address of the sender
    4. DD. The email must be sent only to people who have previously purchased a home
    Show answer to question 18

    Answer: C. The email must include a valid physical postal address of the sender

    CAN-SPAM requires commercial emails to contain a valid physical postal address, a clear opt-out mechanism, and accurate subject lines. Prior consent is not required, but opt-out requests must be honored.

    Why the other options are wrong

    • APrior written consent is generally not required under CAN-SPAM. Senders must still satisfy all applicable requirements, including providing a way to opt out and honoring requests to stop future commercial emails.
    • BThe subject line must not be deceptive, but it does not need to include 'advertisement'.
    • DThere is no requirement that recipients have purchased a home; the email can be sent to any recipient as long as it complies with CAN-SPAM.

19. Question 19 of 25Medium

    A real estate developer is constructing a new three-story apartment building with 12 units and no elevator. Under the Fair Housing Act's design and construction requirements, which of the following statements is correct?

    1. AA. Only the ground-floor dwelling units must meet the accessibility requirements, and those units must include adaptable features such as reinforced bathroom walls for future grab bar installation.
    2. BB. All dwelling units in the building must be fully accessible to persons with disabilities, including features such as wide doorways and roll-in showers.
    3. CC. The building is exempt from the Fair Housing Act's design and construction requirements because it has fewer than four units.
    4. DD. Both the first-floor and second-floor units must comply with the requirements because they are considered 'ground floor' under the regulations when no elevator is present.
    Show answer to question 19

    Answer: A. Only the ground-floor dwelling units must meet the accessibility requirements, and those units must include adaptable features such as reinforced bathroom walls for future grab bar installation.

    In a covered multifamily building without an elevator, the FHA's dwelling-unit design and construction requirements apply to ground-floor units. Required features include usable doors, accessible locations for switches and outlets, reinforced bathroom walls for later grab-bar installation, and usable kitchens and bathrooms. The requirements also address accessible building entrances and public and common-use areas. A building can have more than one ground-floor if different floors have building entrances on accessible routes.

    Why the other options are wrong

    • BNot every dwelling unit in a building without an elevator must meet the FHA's design and construction requirements. Covered ground-floor units must provide specified accessible and adaptable features, but roll-in showers are not generally required.
    • CThe four-unit threshold concerns the number of dwelling units, not stories. This building has 12 units, so it meets that threshold for the FHA's design and construction requirements.
    • DA ground-floor is one with a building entrance on an accessible route; an upper floor reached only by stairs does not qualify just because there is no elevator.

20. Question 20 of 25Easy

    After a failed purchase agreement, both buyer and seller claim the $7,500 earnest money deposit held by the brokerage. How should the broker initially handle the deposit?

    1. AA. Move the deposit to the brokerage operating account while the parties negotiate.
    2. BB. Return the deposit to the buyer because that party submitted the first written demand.
    3. CC. Pay the seller because the contract's final performance deadline has already passed.
    4. DD. Keep the deposit in trust while following applicable escrow terms and law to resolve the dispute.
    Show answer to question 20

    Answer: D. Keep the deposit in trust while following applicable escrow terms and law to resolve the dispute.

    Competing demands alone do not authorize the broker to choose a recipient. The broker should safeguard the deposit in trust and follow applicable escrow terms and law, including any required notices, deadlines, and authorized dispute resolution or disbursement procedures. The broker should not assume the funds may be held indefinitely.

    Why the other options are wrong

    • AMoving client funds to an operating account creates improper commingling and exposes the funds to business use.
    • BBeing the first party to demand the funds does not establish legal entitlement to them.
    • CA passed deadline does not resolve the parties' competing claims to the deposit.

21. Question 21 of 25Easy

    What is the central truth-in-advertising duty for a real estate advertisement?

    1. AA. It must avoid false statements, but it need not account for misleading omissions.
    2. BB. It must follow the seller's advertising instructions, even when those instructions produce misleading claims.
    3. CC. It may make unsupported claims if it includes a disclaimer.
    4. DD. It must be accurate, nondeceptive, and include any required brokerage identification.
    Show answer to question 21

    Answer: D. It must be accurate, nondeceptive, and include any required brokerage identification.

    Advertising must be truthful and not misleading, and required brokerage identification must be included. Claims about value, returns, or property condition must be supportable and presented without deception.

    Why the other options are wrong

    • ALiterally accurate statements can still be deceptive when material information is omitted.
    • BA seller's instructions do not excuse false or misleading advertising.
    • CA disclaimer does not substitute for adequate factual support for an advertised claim.

22. Question 22 of 25Easy

    Which of the following actions by a property manager constitutes illegal steering under the federal Fair Housing Act?

    1. AA. Requiring every adult applicant to undergo identical credit and criminal background checks prior to lease approval.
    2. BB. Assigning families with young children only to ground-floor units to reduce noise for downstairs neighbors.
    3. CC. Refusing to rent a third-floor walk-up apartment to an applicant with an unstable employment history.
    4. DD. Enforcing uniform occupancy standards that limit two occupants per bedroom across the entire complex.
    Show answer to question 22

    Answer: B. Assigning families with young children only to ground-floor units to reduce noise for downstairs neighbors.

    Confining families with children to specific areas, buildings, or ground-floor units because they have children constitutes steering based on familial status under the federal Fair Housing Act.

    Why the other options are wrong

    • AApplicant screening is not steering on the stated facts. However, applying identical credit or criminal background checks does not automatically establish fair housing compliance; screening policies can still have unlawful discriminatory effects.
    • CAn employment-based rental decision does not describe directing applicants to particular units or areas based on a federally protected characteristic.
    • DAn occupancy limit is not steering on the stated facts. Two occupants per bedroom is a general guideline, not an automatic safe harbor; reasonableness depends on unit size and configuration, children's ages, and other circumstances.

23. Question 23 of 25Easy

    A brokerage launches an online audience-targeting campaign on a major social media platform to promote luxury suburban homes. Which advertising strategy violates the federal Fair Housing Act?

    1. AA. Highlighting upscale community features such as an Olympic swimming pool and private tennis courts
    2. BB. Setting an automatic daily spend limit that caps total impressions across the broader metropolitan area
    3. CC. Directing advertisements primarily toward users who engage with luxury architecture and design content
    4. DD. Applying geographic boundary filters designed to exclude zip codes with high minority populations
    Show answer to question 23

    Answer: D. Applying geographic boundary filters designed to exclude zip codes with high minority populations

    The federal Fair Housing Act prohibits housing advertising that discriminates based on race, color, religion, sex, national origin, familial status, or disability. Deliberately excluding ZIP codes because of their racial composition is discriminatory housing-ad targeting. Highlighting property amenities, setting a general spending cap, and targeting architecture or design interests do not establish violations on the facts given. However, apparently neutral targeting criteria can function as protected-class proxies or contribute to discriminatory ad delivery, so interest-based targeting is not automatically lawful.

    Why the other options are wrong

    • AThis confuses luxury amenities with a protected-class preference. Describing a pool or tennis courts promotes property features without indicating who may live there.
    • BThis confuses a spending limit with discriminatory audience exclusion. A general budget cap limits advertising volume without selecting or excluding users based on a protected characteristic.
    • CThis confuses interest-based marketing with protected-class discrimination. As described, targeting architecture and design interests does not indicate a protected-class preference or exclusion.

24. Question 24 of 25Easy

    A residential landlord fails to correct a qualifying habitability defect after receiving the required notice and time to act. Assuming applicable state law authorizes the remedy and all statutory conditions are met, which remedy allows the tenant to hire a contractor to correct the defect and offset the permitted expense against rent?

    1. AA. Constructive eviction
    2. BB. Rent withholding
    3. CC. Repair-and-deduct remedy
    4. DD. Specific performance
    Show answer to question 24

    Answer: C. Repair-and-deduct remedy

    The repair-and-deduct remedy, where authorized by applicable state law, permits a tenant to arrange qualifying repairs and subtract the permitted expense from rent after satisfying statutory requirements. Availability, notice requirements, waiting periods, eligible repairs, cost limits, and procedures vary by jurisdiction.

    Why the other options are wrong

    • AConstructive eviction generally involves a tenant vacating because the landlord's conduct or failure to act substantially interferes with use and enjoyment, not remaining and offsetting repair expenses against rent.
    • BRent withholding involves retaining rent payments under applicable legal requirements, rather than paying for qualifying repairs and offsetting that expense against rent.
    • DSpecific performance is a court order requiring a party to perform an obligation, not a tenant's statutory authority to arrange repairs and offset their permitted cost against rent.

25. Question 25 of 25Easy

    A newly licensed salesperson markets herself as an independent broker, signs a listing in her own name, and keeps earnest money in a personal account. Her sponsoring broker has not authorized these practices. What conclusion is best supported?

    1. AA. She is outside broker supervision and mishandling trust funds.
    2. BB. She may continue unless a client files a complaint.
    3. CC. She may sign listings and act independently until her broker reviews them.
    4. DD. She may hold deposits personally when the amount is small.
    Show answer to question 25

    Answer: A. She is outside broker supervision and mishandling trust funds.

    A salesperson must conduct licensed activity under the supervision and authority of the sponsoring broker, including authorized advertising and forms. Client funds such as earnest money must be placed in the proper trust or other authorized escrow account, not the salesperson's personal account.

    Why the other options are wrong

    • BA licensing or trust-account violation does not become permissible merely because no client has complained.
    • CPrior broker review does not authorize a salesperson to act independently or sign a listing in her own name.
    • DThe size of a deposit does not authorize a salesperson to hold client funds personally.

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