Practice of real estate and fair housing
Pearson VUE area V (10 questions) covers how a brokerage operates and the federal laws that shape it; PSI gives practice 12% and property management 3%. Fair housing questions are the most predictable points on the exam.
80 questions in 2 hours 30 minutes, 56 to pass. 10 of the 80 questions come from practice of real estate and fair housing, and every answer is explained.
Or try the free practice of real estate and fair housing drillTom's brokerage leases a ground-floor office open to the public that has a two-step entrance. A client who uses a wheelchair cannot enter. Under the ADA, the brokerage must:
What to know about practice of real estate and fair housing
- Listing types: exclusive right-to-sell (the broker earns the commission however the property sells), exclusive agency (the owner may sell alone without paying), open listing (only the broker who produces the buyer is paid; unilateral) and net listing (the broker keeps everything above a set price; a conflict of interest and illegal in some states). Listings and buyer agreements should have a definite termination date.
- Commissions are negotiable between broker and client; any suggestion of a "standard" rate is price fixing. A broker earns a commission as procuring cause when producing a ready, willing and able buyer on the owner’s terms, unless the agreement says otherwise.
- A property manager is a general agent who markets and leases space, collects rents, keeps records, maintains the property and holds security deposits in trust; the management agreement sets authority and fees.
- The federal Fair Housing Act (1968, amended 1974 and 1988) protects race, color, religion, national origin, sex, familial status and disability. Exemptions: an owner selling or renting a single-family home without a broker and without discriminatory advertising (limited to three homes), owner-occupied buildings of up to four units, religious organizations and private clubs for noncommercial use. The Civil Rights Act of 1866 bars racial discrimination in all property transactions with no exemptions.
- Prohibited practices: refusing to deal, different terms, steering (channeling buyers by protected class), blockbusting (inducing sales by predicting entry of a protected class), redlining (refusing to lend in an area), discriminatory advertising and denying reasonable accommodations or modifications. HUD enforces; a complaint goes to HUD within one year, or to federal court within two.
- Familial status protects households with children under 18, pregnant women and those securing custody; housing for older persons (62+, or 55+ with 80% of units occupied by someone 55+) is exempt from it. Disability includes the right to make reasonable modifications at the tenant’s expense and to reasonable accommodations in rules, such as an assistance animal despite a no-pets policy.
- The ADA requires public accommodations and commercial facilities to remove barriers where readily achievable and to make new construction accessible; it governs brokerage offices and commercial property.
- Antitrust (Sherman Act): price fixing, group boycotts, market allocation and tie-in arrangements are per se illegal. Penalties include fines and imprisonment, and treble damages in civil suits.
- Risk management: brokers must supervise licensees; errors and omissions insurance covers negligence claims; the National Do Not Call Registry and CAN-SPAM limit solicitation; vicarious liability makes the broker answerable for licensees’ acts within the scope of employment.
Pearson VUE outline area V: 10 of the 80 scored national questions in our mock come from this topic. The notes state principles that hold in every state; state-specific rules are in the California, Texas and Florida guides.
Drill practice of real estate and fair housing, then sit the full exam
80 questions in 2 hours 30 minutes, 56 to pass. 10 of the 80 questions come from practice of real estate and fair housing, and every answer is explained.
Or try the free practice of real estate and fair housing drillCommon questions
What are the protected classes under the federal Fair Housing Act?
Race, color, religion, national origin, sex, familial status and disability (handicap). Race has no exemptions at all under the Civil Rights Act of 1866. States and cities often add classes such as age, marital status, source of income and sexual orientation.
What is the difference between an exclusive right-to-sell and an exclusive agency listing?
Under an exclusive right-to-sell listing the broker is paid no matter who finds the buyer, including the owner. Under an exclusive agency listing one broker is appointed, but the owner keeps the right to sell without a broker and pay no commission.
80 questions in 2 hours 30 minutes, 56 to pass. 10 of the 80 questions come from practice of real estate and fair housing, and every answer is explained.
Or try the free practice of real estate and fair housing drillMore real estate exam topics
- Property ownership and estates · 9 of 80
- Legal descriptions and land use controls · 6 of 80
- Valuation and appraisal · 11 of 80
- Contracts · 9 of 80
- Agency · 7 of 80
- Property disclosures and environmental issues · 9 of 80
- Financing and settlement · 7 of 80
- Transfer of title · 5 of 80
- Real estate math · 7 of 80
Free practice of real estate and fair housing drill · National mock exam · California exam · Texas exam · Florida exam
Original independent practice. Not affiliated with or endorsed by Pearson VUE, PSI or any state real estate commission.