Regulatory Compliance and Ethics Flashcards
7 cards from real CRECI practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Regulatory Compliance and Ethics flashcards as text
Under RESPA, which of the following is considered an illegal kickback in a commercial real estate transaction?
Answer: Receiving undisclosed compensation from a title company for steering clients
RESPA prohibits undisclosed kickbacks or referral fees from settlement service providers, such as title companies, that are not disclosed to the client.
A commercial broker represents both the buyer and seller in the same transaction without disclosing this to either party. This is best described as:
Answer: Undisclosed dual agency
Undisclosed dual agency occurs when a broker represents both parties without informing them, which is illegal and a serious ethical violation.
Which federal law prohibits discrimination in commercial lending based on race, color, religion, national origin, sex, marital status, or age?
Answer: Equal Credit Opportunity Act (ECOA)
The Equal Credit Opportunity Act (ECOA) prohibits discrimination in credit transactions, including commercial loans, based on protected characteristics.
A CRECI member discovers their client intends to use a leased commercial property for an illegal purpose. The ethical obligation is to:
Answer: Withdraw from the representation and refuse to facilitate the illegal activity
Ethics codes require professionals to withdraw from representation when a client intends to use their services to facilitate illegal activity.
Which of the following best describes the 'duty of loyalty' in commercial real estate agency?
Answer: Placing the client's interests above all others, including the broker's own interests
The duty of loyalty requires an agent to prioritize the client's interests above their own and above the interests of third parties.
Under the Americans with Disabilities Act (ADA), which commercial properties are generally required to provide accessible accommodations?
Answer: Places of public accommodation and commercial facilities
The ADA requires places of public accommodation and commercial facilities to be accessible to individuals with disabilities, regardless of when they were built.
An environmental site assessment that identifies potential contamination issues on a commercial property is known as a:
Answer: Phase I ESA
A Phase I Environmental Site Assessment (ESA) is the standard due diligence report used to identify recognized environmental conditions on a property.