Wyoming Real Estate Salesperson Exam — All Questions
← Back to practice3 questions
Under the federal Fair Housing Act, which of the following is a protected class?
- a.Occupation
- b.Level of education
- c.Source of a person's income
- d.Religion✓
The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability (handicap). Religion is therefore a protected class. Occupation, education level, and source of income are not protected under the federal act, although some state or local laws add extra protected categories such as source of income.
An agent tells prospective buyers that they would be 'more comfortable' in a different neighborhood based on the racial makeup of the area, steering them away from certain homes. This illegal practice is called:
- a.Steering✓
- b.Blockbusting
- c.Redlining
- d.Puffing
Steering is directing buyers toward or away from particular neighborhoods based on a protected characteristic such as race, and it violates fair housing law. Blockbusting is inducing owners to sell by suggesting that people of a particular protected class are moving in. Redlining is refusing to lend or insure in certain areas. Puffing is legal, non-factual sales exaggeration and is unrelated to discrimination.
Client funds such as earnest money deposits that a broker holds on behalf of others must be kept in a:
- a.Broker's general operating account
- b.Personal savings account of the agent
- c.Separate trust or escrow account✓
- d.Petty cash fund
Money belonging to others, such as earnest money, must be held in a separate trust (escrow) account to keep it distinct from the broker's own funds. Mixing client money with the broker's business or personal funds is commingling, and using it for the broker's own purposes is conversion, both of which are serious license-law violations. A general operating, personal, or petty cash account would all constitute commingling.