Real Estate Unit 19 - Fair Housing and Ethical Practices

The North Carolina Fair Housing Act prohibits sellers acting on their own from using race as a discriminatory factor. True False

True

The real estate brokerage firm office is likely to have to comply with ADA guidelines. True False

True

North Carolina Fair Housing Act of 1983

prohibits the same activities as the federal law. Thus, one discriminatory act violates both federal and state laws and subjects the violator to both federal and state penalties.

The North Carolina Fair Housing Act of 1983 prohibits the same activities as the federal law. True False

True

Federal Fair Housing Act

(Title VIII of the Civil Rights Act of 1968) prohibits discrimination in housing based on race, color, religion, or national origin

Which building would NOT be covered by the Americans with Disabilities Act? A) A residence B) A real estate brokerage office C) A movie theater D) A grocery store

A residence

Panic Peddling

AKA blockbusting

Americans with Disabilities Act (ADA)

Act addresses rights of individuals with disabilities in employment and public accommodations.

What three additional protected classes does ECOA have that are NOT protected classes under the federal Fair Housing Act? A) Age, marital status, and single people B) Age, familial status, and public assistance income C) Age, marital status, and public assistance income D) Credit score, age, and public assistance income

Age, marital status, and public assistance income

Which federal act guarantees individuals equal access to public accommodations, commercial facilities, employment, and telecommunications? A) Americans with Disabilities Act B) Truth in Lending Act C) Sherman Antitrust Act D) Fair Housing Act

Americans with Disabilities Act

Which of these is TRUE regarding the definition of sexual harassment? An unsolicited overt request or demand for sexual acts when submission to such conduct is made a term of the execution or continuation of the lease agreement. An unsolicited overt request or demand for sexual acts when submission to or rejection of such conduct by an individual is used to determine whether rights under the lease are accorded. A) I only B) Both I and II C) II only D) Neither I nor II

Both I and II

Doug owns several rental houses in North Carolina and has been using a woman's need for housing and safety as leverage to obtain sexual favors for the past 10 years. Doug was taking or threatening to take adverse action against residents when they refused or objected to his advances. Under North Carolina statute pertaining to sexual harassment of a prospective tenant by a landlord, which of these is TRUE? A) Doug's conduct is most likely illegal because he is only harassing female tenants. If he harassed male tenants as well, Doug would be okay. B) Doug's conduct most likely is illegal because he committed unsolicited overt requests or demands for sexual acts when submission to such conduct is made a term of the execution or continuation of the lease agreement. C) Doug can do whatever he needs to do to keep his properties occupied. He is the owner and does not have to comply with the North Carolina sexual harassment statute. D) Doug's conduct is most likely legal.

Doug's conduct most likely is illegal because he committed unsolicited overt requests or demands for sexual acts when submission to such conduct is made a term of the execution or continuation of the lease agreement.

Which of the following can be considered by a lender while deciding whether or not to approve a loan without violating fair housing laws? A) Gender B) Economic position C) Ethnicity D) Religion

Economic position

A broker consistently shows properties to a minority couple in predominantly minority-populated neighborhoods may be blockbusting. True False

False

Every broker is subject to the National Association of REALTORS® Code of Ethics. True False

False

The Americans with Disabilities Act requires that all buildings built after 1992 have elevators. True False

False

The federal Fair Housing Act of 1968 as amended prohibits discrimination based on sexual orientation. True False

False

The practice of refusing to make mortgage loans in specific areas for other than the economic qualifications of the applicants is known as panic peddling. True False

False

The purpose of the Civil Rights Act of 1866 is to prohibit the use of race in the sale or purchase of residential property. True False

False

Department of Housing and Urban Development (HUD)

Federal agency that has established rules and regulations that further interpret the practices affected by federal law; for example, HUD distributes an equal housing opportunity poster.

Which practice is NOT permitted under the Federal Fair Housing Act as amended? Preference in the rental of rooms by a private club to its members An owner of a 20-unit apartment building renting exclusively to females A) Both I and II B) II only C) I only D) Neither I nor II

II only

Under what circumstances may a broker legally NOT show a minority a home in a white neighborhood? A) When the agent sincerely believes that if the home were shown, there would be violence B) When the minority has given up their rights under the 1866 Civil Rights Act C) Never D) If the owner is out of town and has instructed the broker not to show the home to anyone while the owner is away

If the owner is out of town and has instructed the broker not to show the home to anyone while the owner is away

Which of these trade organizations created the code of ethics that real estate brokers adhere to when they become members of that trade organization? A) REALTORS® Association of the United States (RAUS) B) National Association of REALTORS® (NAR) C) Association of REALTORS® (AOR) D) United States Association of REALTORS® (USAR)

National Association of REALTORS® (NAR)

All agency agreements in North Carolina must contain which type of clause printed in a font that will attract attention? A) Preemptive clause B) Aliénation clause C) Disability clause D) Nondiscrimination clause

Nondiscrimination clause

In North Carolina, a person who feels she has been discriminated against in housing by a property owner should file a complaint with the A) North Carolina Human Relations Commission. B) North Carolina Real Estate Commission. C) local sheriff. D) North Carolina Association of REALTORS®.

North Carolina Human Relations Commission.

Worldwide Property Management Company manages several apartment complexes in North Carolina. Hugo is one of the most successful property managers in the company. Hugo has gotten into the habit of caressing many of the female tenants when they come into his office with complaints about their unit. These tenants feel like Hugo is creating an intimidating, hostile, or offensive environment. Hugo is engaging in what type of sexual harassment? A) Verbal harassment B) Nonverbal harassment C) Physical harassment D) Hugo is not engaging in sexual harassment

Physical harassment

Which of these protected classes are in both the federal Fair Housing Act and Equal Credit Opportunity Act (ECOA)? A) Race, religion, disability, color, sex, national origin B) Race, religion, disability, color, national origin, sex C) Race, religion, disability, color, sex D) Race, religion, color, national origin, sex

Race, religion, color, national origin, sex

Sofia purchased a home in North Carolina located in the mountains overlooking a river. After living in the home for several years, she decided to relocate to the beach. After reaching out to a few real estate brokerage firms, Sofia decided to sell her home as a for sale by owner. According to the North Carolina Fair Housing Act of 1983, which of these is Sofia allowed to do? A) Place advertisements on social media saying all are welcome to purchase, except families with children. B) Refuse to sell to a buyer who is Japanese. C) Refuse to sell her home to someone who is planning on tearing down the house. D) Refuse to sell to a buyer who is Hispanic.

Refuse to sell her home to someone who is planning on tearing down the house.

Charles buys a property near the university his daughter, Sarah, is attending. Sarah is living in the house, and her dad wants to rent out one of the other bedrooms. According to the North Carolina Fair Housing Act, A) Sarah and her dad can refuse to rent to people who are male. B) Sarah and her dad can refuse to rent to people based on their color. C) Sarah and her dad can refuse to rent to people based on their race. D) Sarah and her dad will have no available exemptions in North Carolina for renting out a room in a property a family member lives in.

Sarah and her dad can refuse to rent to people who are male.

What additional protected group exists under the NAR Code of Ethics that is not protected under the Federal Fair Housing Act? A) Race B) Sexual orientation or gender identity C) Marital status D) Age

Sexual orientation or gender identity

To be effective, a code of ethics must be specific by dictating rules that either prohibit or demand certain behavior. REALTORS® must adhere to the Code of Ethics or be sanctioned for violation. At the national level, the REALTORS® association has established procedures for professional standards committees and all three levels of the organization to administer compliance. Interpretations of the code are known as A) Standards of Ethics. B) Ethical Standards. C) Standards of Practice. D) Codes of Practice.

Standards of Practice.

Victor buys a quadplex in a city in North Carolina near downtown, and he lives in one of the units. He takes several rental applications for the other units and decides not to rent to a person who is from a country other than the United States. Which of these is TRUE? A) The North Carolina Fair Housing Act allows exemptions for rentals for a one-to-four-unit residential building if the owner or one of its family members lives in one of the units. B) The North Carolina Fair Housing Act completely mirrors the federal Fair Housing Act. C) The North Carolina Fair Housing Act does not allow exemptions for rentals when they are occupied by the owner or one of its family members. D) A person can never be discriminated based on national origin.

The North Carolina Fair Housing Act allows exemptions for rentals for a one-to-four-unit residential building if the owner or one of its family members lives in one of the units.

North Carolina Human Relations Commission

The first place to file a complaint by those who have been injured by discriminatory housing acts

Redlining

The practice of refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than the economic qualifications of the applicants or the collateral value of the property

The NAR Code of Ethics prohibits discrimination based on sexual orientation and gender identity. True False

True

A North Carolina broker found guilty of violating fair housing laws is subject to loss of his real estate license. True False

True

A North Carolina broker who says to a buyer in a minority group, "You would be more comfortable living in a neighborhood with people of your kind" is in violation of state and federal fair housing laws. True False

True

A property manager who tells a tenant the he will fix the heating in the tenant's apartment in exchange for sexual favors is in violation of North Carolina law. True False

True

National origin is a protected class under both the federal Fair Housing Act and the Equal Credit Opportunity Act. True False

True

Sexual insults, jokes about gender, as well as obscene gestures, are considered sexual harassment in North Carolina. True False

True

The Equal Credit Opportunity Act prohibits lenders from using marital status as a factor in approving residential loans. True False

True

The Equal Credit Opportunity Act (ECOA) ensures that A) all creditors make loans to every consumer who applies for a loan. B) all creditors are given an equal chance to offer credit. C) all consumers are given an equal chance to obtain credit. D) all consumers obtain credit.

all consumers are given an equal chance to obtain credit.

During this investigation period of a complaint, HUD can attempt to resolve the dispute informally through A) arbitration. B) litigation. C) conciliation. D) mediation.

conciliation.

Elena is a real estate broker and has just gotten her first listing agreement signed with a seller. Elena is excited to be writing her first real estate advertisement for all her social media accounts. All of these are good guidelines for Elena to follow EXCEPT A) use words that describe features on the property ("near 6-mile paved exercise trail through woods") rather than the buyers who might want to use the feature ("great for joggers"). B) advertisements describing the properties (two-bedroom, cozy, family room), services, and facilities (no bicycles allowed) or neighborhoods (quiet streets). C) describe the dwelling, area, or building residents with words that relate to race, color, religion, age, familial status, or national origin ("Hispanic neighborhood") D) do not exclude from your marketing campaign persons in protected classes, such as families with children, people of certain racial or ethnic backgrounds, persons with disabilities, et cetera.

describe the dwelling, area, or building residents with words that relate to race, color, religion, age, familial status, or national origin ("Hispanic neighborhood")

The goal of the ADA is to A) enable individuals with disabilities to become part of the economic and social mainstream of society. B) make sure that people with mobility impairments can access restrooms. C) ensure that all places of employment, no matter the number of employees, are accessible. D) ensure that all commercial buildings have elevators.

enable individuals with disabilities to become part of the economic and social mainstream of society.

Office of Fair Housing and Equal Opportunity (OFHEO)

enforces federal laws and establishes policies to ensure that all Americans have equal access to the housing of their choice.

When a real estate licensee reports that minorities are moving into the area in order to induce homeowners to sell their properties, the activity is considered A) panic peddling. B) legal as long as it is true. C) steering. D) farming a neighborhood.

panic peddling.

Equal Credit Opportunity Act (ECOA)

guarantees nondiscrimination in the granting of credit by protecting classes of persons similar to the Federal Fair Housing Act. It prohibits discrimination based on race, color, religion, national origin, sex, marital status, or age in the granting of credit.

A real estate broker's practice of offering a special discount to members of a particular protected class is A) illegal. B) of no consequence. C) legally acceptable. D) legal but ill-advised.

illegal

Code of Ethics

is a written system of standards for ethical conduct. The code contains statements designed to advise, guide, and regulate job behavior.

A city neighborhood has started to become more diverse as ethnic populations have moved in. ABC Realty has created an advertising campaign offering reduced fees to homeowners who list and move from the changing neighborhood. In this instance, ABC Realty A) has done a service for those who need to move before the neighborhood completely changes. B) is guilty of steering and profiteering. C) has broken no law and is following standard practices. D) is guilty of blockbusting.

is guilty of blockbusting.

Blockbusting

is the act of encouraging people to sell or rent their homes by claiming that the entry of a protected class into the neighborhood will have some negative impact on property values.

Steering

is the channeling of home seekers to particular neighborhoods based on the presence or absence of a protected class. It also includes discouraging potential buyers from considering some areas. In either case, it is an illegal limitation of a purchaser's options.

The Americans with Disabilities Act requires that A) reasonable accommodations be provided to people with disabilities. B) all employers adopt nondiscriminatory employment practices. C) all real estate be free of barriers to people with disabilities. D) the existing premises be remodeled regardless of the cost involved.

reasonable accommodations be provided to people with disabilities.

Under the provisions of the Federal Fair Housing Act, if a lender refuses to make loans in certain areas because the population is made up of more than 25% African Americans, the lender is probably practicing A) steering. B) redlining. C) blockbusting. D) borrower qualifying.

redlining.

A real estate broker advertising property for sale to the public would need to consider all the following EXCEPT A) the National Do Not Call Registry. B) the Truth in Lending Act. C) the junk fax and spam acts. D) the Equal Credit Opportunity Act.

the Equal Credit Opportunity Act.

Discrimination based on familial status was prohibited with the passage of A) the Fair Housing Act of 1968. B) the Civil Rights Act of 1866. C) the Fair Housing Amendments Act of 1988. D) the Civil Rights Act of 1964.

the Fair Housing Amendments Act of 1988.

Civil Rights Act of 1866

to protect the civil rights of persons of African descent born in or brought to the United States. This law prohibited any type of discrimination based on "race, color, or previous condition of servitude.

Channeling

unethical and illegal practice of directing prospective buyers to or steering them away from particular areas and neighborhoods due to minority statuses such as race, national origin, religion, or ancestry