Federal Law

Truth in Lending

The Truth in Lending Act is designed to protect consumers in credit transactions by requiring clear disclosure of vital terms of the lending arrangement and all costs.

The federal trade commission enforces and administers the truth in lending act.  Truth in lending also gives consumers the right to cancel certain credit transactions that involve a lien on a consumer's principal dwelling.  The borrower usually has the right to rescind the agreement until midnight of the third business day after the promissory not was signed.

APR (annual percentage rate)
The lender must disclose to the borrower the APR. APR is an expression of the effective interest rate that the borrower will pay on a loan, taking into account one-time fees and standardizing the way the rate is expressed.

In other words the APR is the total cost of credit to the consumer, expressed as an annual percentage of the amount of credit granted.

APR is intended to make it easier to compare lenders and loan options.

Fair Housing

At the urging of President Johnson, the congress passed the federal Fair Housing Act only one week after the assassination of Martin Luther King, Jr. on April 11, 1968.

The 1968 act expanded on previous acts and prohibited discrimination based on race, religion, national origin, sex and as amended, handicap and family status concerning the sale, rental, and financing of housing.

Jones v. Alfred H. Mayer is a united states supreme court case which held that Congress could regulate the sale of private property in order to prevent racial discrimination based upon the 13th amendment ."

When the Fair Housing Act was first enacted, it prohibited discrimination only on the basis of race, color, religion and national origin.

In 1974, sex was added to the list of protected classes, and in 1988, disability and familial status were added.

The Americans with Disabilities Act of 1990 is a wide-ranging civil rights law that prohibits, under certain circumstances, based on discrimination and disability. 

The United states department of housing and Urban Development is the cabinet agency with the statutory authority to administer and enforce the Fair Housing Act.

Examples of violations of Fair housing are steering, and Blockbusting. 


Steering is the illegal practice of channeling home seekers to particular areas, either to maintain the homogeneity of an area or to change the character of an area, which limits their choices of where they can live.


Blockbusting, which is also known as Panic Selling and Panic Peddling is an Illegal racial discrimination practice wherein real estate brokers attempt to change the racial composition of a neighborhood by encouraging listings and sales in a neighborhood.  In short, fair housing is the elimination of discriminatory practices and policies in the housing market.

Sherman antitrust laws

Now we shall talk about the Sherman antitrust laws, which prohibit price fixing, group boycotting, the allocation of customers or markets, or tie-in agreements. Price fixing is prohibited. This means that competing brokers, real estate governing bodies, or multiple listing organizations cannot agree to set sales conditions, fees, or management rates. Group boycotting is also illegal under the antitrust laws. This means that two or more brokers cannot conspire against another business, or agree to withhold their patronage to reduce competition.

The allocation of markets or customers would occur when brokers agree to divide their markets or customers and not compete for the other’s business. Tie-in agreements are also illegal. For example, a real estate broker owns 10 acres of vacant land. A builder wants to buy the land, but the broker refuses to sell unless the builder agrees to list the property with the brokerage firm. This tie-in arrangement is illegal. An individual may be fined a maximum of $100,000 and be sentenced up to three years in prison – and a corporation may be fined up to $1 million – for breach of the Sherman antitrust laws.

In a civil suit, an aggrieved person may recover up to triple the value of the actual damages plus attorneys’ fees and costs.


Bundle of Rights  


Government Rights  

Police Power   

Eminent domain   



Real vs Personal Property




Trade Fixture   


    OR-EE Rule   


Freehold Estate   

Fee simple absolute   

Fee simple Defeasible   

Life estate   

Less than freehold estate   

Estate for Years   

Periodic Tenancy   

Estate at will   

Estate in sufferance   

Types of Leases   

Gross lease   

Net lease   

Percentage lease   

Lease option   

Property management


Essentials of a valid contract   

Capable parties  

Lawful object   


Offer and acceptance   

Types of Contracts   

Valid, Void & Voidable Contracts   

Implied contract   

Bilateral & Unilateral contacts   

Executed & Executory   

Option contract   

Land Contract   


Types of Listings contracts   

Exclusive Listing   

Exclusive Authorization and right to sell Listing   

Exclusive Agency Listing   

Open Listing   

Net Listing   

Listings with an option   

Multiple listing service   


Universal agent   

General agent   

Special agent   

Attorney in fact   

Principal and Client   

Transaction broker   

Dual or limited agency   

Practice and disclosure   

Stigmatized property   



Actual fraud   

Negative fraud   

Constructive fraud   


Federal Law   

Truth in Lending   

Fair Housing   



Sherman antitrust laws   


Easement in gross   

Implied easement   

Prescriptive easement   

Termination of Easement   



Property Transfer




Title insurance   

Forms of ownership   

Tenancy in common   

Joint tenancy   

Community property   





Time Shares   

Cluster housing   



Appraisal Principles   

Principle of Highest and Best Use   

Principle of Substitution   

Principle of Conformity   

Principle of Contribution   

Principle of change   

Market Value   

Steps in the appraisal   

Appraisal methodology   

Market data approach   

Capitalization (income) Approach   

Cap Rate   

Cost (replacement) approach   

Gross Rent Multipliers   


Physical Deterioration   

Functional Obsolescence   

Economic Obsolescence   



Primary mortgage   



Types of Loans   

Loans clauses   


Construction Terms   

Test Taking Tips