California Real Estate Practice Exam

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Prepare for the California Real Estate Exam. Study with flashcards and multiple-choice questions, each question includes hints and explanations. Get ready to ace your exam!

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What is the punishment for violating the "kickback" provisions of R.E.S.P.A.?

Both a and b
None of the above
Not more than a $10,000 fine
One year in prison

The correct answer is: Both a and b

The correct answer centers around the understanding that violating the kickback provisions under the Real Estate Settlement Procedures Act (RESPA) can lead to multiple types of penalties. When a person or entity engages in illegal kickbacks or referral fees between settlement service providers, they can face significant repercussions. One key aspect of RESPA is to eliminate undue influence that could arise from financial incentives and ensure that consumers are treated fairly during the closing process of real estate transactions. The law specifically addresses actions like offering or accepting kickbacks and imposes punitive measures to deter such practices. If someone is found in violation of these kickback provisions, they could face both criminal and civil penalties. This includes fines which can reach up to $10,000, as well as potential imprisonment for up to one year. Therefore, the correct answer encompasses both the potential for fines and jail time, thus recognizing that penalties can be cumulative. This comprehensive approach is intended to emphasize the serious nature of these infractions in the real estate industry and protect consumers from unethical practices.