Chapter 9 of 1515% of exam
Practice of Real Estate
This is the largest national topic and covers fair housing, ethics, and fund handling. Compliance protects consumers and licensees alike.
Fair Housing
The federal Fair Housing Act protects race, color, religion, national origin, sex, familial status, and disability. Prohibited practices include steering, blockbusting, and redlining. Advertising and terms must be nondiscriminatory.
Trust Funds and Advertising
Client funds such as earnest money must be held in a separate trust or escrow account; commingling with the broker's funds is prohibited. Advertising must be truthful and identify the responsible brokerage. Misrepresenting material facts is prohibited, while honest opinion (puffing) is allowed.