Texas Pre-License - Principles Of Real Estate I- Fair Housing Laws

Which of the following unethical or illegal activities was Ulysses guilty of performing?

Ordering withdrawals from Sam's bank account without permission

Protected classes in the Fair Housing Act of 1968 include race, color, religion, national origin, sex, disability, and what other category?

family status

How long does person who believes that they have been injured by the discriminatory practices of a real estate license holder have to file a complaint with HUD?

1 yr

At what age does a child living with his or her parents no longer qualify for familial status protection under the Fair Housing Act?

18

What is the best definition of blockbusting? a. the practice of encouraging people to sell their homes due to beliefs about how the entry of a protected class will affect an area's property values B. the practice of advising a person seeking to buy or rent a dwelling in a manner that perpetuates segregated housing C. the practice of changing the financial terms of a loan because of an applicant's membership in a protected class D. the practice of limiting the number of loans or the loan-to-value ratio in certain areas of a community or city

A That's Correct! Panic selling or blockbusting is encouraging homeowners to sell before their homes will supposedly lose value because of the entry of a protected class in the area.

Which was the first housing discrimination protection act?

Civil Rights Act of 1866

essentially the first law to introduce a protected class (in this case, race) and prevent housing discrimination based on this class also granted all citizens of the United States — without exception - a set of basic rights regardless of their race, color, or previous condition of servitude, which act

Civil Rights Act of 1866

The _____was passed to help eliminate redlining.

Community Reinvestment Act CRA

enables all parts of a community to have access to credit also requires lenders to assist their local communities by participating in community development projects, which act

Community Reinvestments act

If a lender refuses to make Harry a 30-year mortgage just because Harry is 85 years old, they will have violated the_____

ECOA Equal Credit Opportunity Act.

Sally and Fred are two single people buying a home together. The lender is threatening to deny them a loan because he does not like their lifestyle. If the lender does that, it will be a violation of the:

ECOA ECOA is Title VII of the Consumer Protection Act. It prohibits lenders from discriminating against credit applicants on the basis of their race, color, religion, national origin, sex, marital status, age, or use of public assistance. This example shows discrimination based on marital status.

What two important classifications were added to the list of protected classes under the 1988 Housing and Community Development Act amendment?

Family status and disability

Under the ECOA, it is legal for a lender to ask if a borrower is separated. TRUE OR FALSE

TRUE Under the Equal Credit Opportunity Act (ECOA), lenders are permitted to ask if a borrower is married, unmarried, or separated to understand financial obligations that might affect loan repayment. This is part of assessing the borrower's financial standing without crossing into discriminatory practices. Asking about marital status helps in evaluating the stability and sources of income, which are crucial for loan approval decisions.

Since Ulysses said he would take care of closing, did he technically do anything wrong with Sam's money? Yes, agents should never hold onto money that does not belong to them. No, Ulysses had consent from Sam to do what was necessary for closing.

Yes

Which of the following statements accurately describes the basic issues involved in the Jones v. Mayer Co. case? a. A real estate company refused to sell a home because of the prospective buyer's race and was found guilty of violating the Civil Rights Act of 1866. A real estate agent refused to show a property due to the renter's religion and was found guilty of violating the Thirteenth Amendment. An owner refused to make an exception to a "no pets" policy and was found guilty of violating the federal Fair Housing Act. An owner refused to rent out a home due to the lessee's sexual orientation and was found guilty of under Title VIll of the Civil Rights Act of 1968.

a

Which of these tenants is protected by the Fair Housing Act? a. a seeing-impaired woman who uses a service dog in a pet-free building b. a man with an unmedicated mental illness and a history of violence C. a woman with a heroin addiction D. a man whose 18-year-old high school senior son lives at home with him

a You can refuse a potential tenant if you feel they would put other tenants in danger, illegal drug addictions are not considered disabilities, and people 18 and over are legally adults, even if they live at home and are in high school. The seeing-impaired woman must be allowed accommodations for his service dog even if the building does not allow pets.

The protected class of disability is defined as anyone who has:

a physical or mental impairment that affects the performance of one or more major life activities -The law states that a disability is any physical or mental impairment that limits one or more of a person's major life activities, such as walking, talking, hearing, seeing, breathing, learning, performing manual tasks, and caring for oneself.

prohibits discrimination against people with disabilities in employment, transportation, public accommodation, communications, and governmental activities also establishes requirements for telecommunications relay services, which act

americans with disabilaty act

What is a protected category according to Texas fair housing laws, but not national ones?

ancestry

An elderly couple is going to rent their vacant basement for extra income. The couple does not want a family with children. The couple asks their granddaughter, who is a real estate agent, to help them with finding tenants. Is this legal? Why or why not? a. Yes, but the couple will only be allowed to discriminate against families with children if they do not pay their granddaughter any type of commission. b. No, the couple is not allowed to discriminate against families with children if they are helped by their granddaughter because she is a license holder. c. Yes, since the couple is renting their own space, they are exempt from discriminating against families with children. d. No, it is never legal to discriminate against families with children.

b

Why do most brokerages fall within the scope of the ADA, and therefore must be extra careful about accessibility? a. because it becomes a fair housing issue if brokerages are inaccessible b. because of their location or because they have 15 or more employees c. because there is an addendum to ADA specifically pertaining to brokerages d. because they have under 15 employees

b

A tenant comes to a property manager asking to put in shower bars to accommodate their disability. When they property manager informs the landlord, the landlord balks, because the tenant is not a wheelchair user. What should the property manager do? Choose the BEST option. a. Inform the landlord that not all disabilities are visible, and warn them they could be violating the Americans With Disabilities Act by refusing the accommodation. b. Tell the tenant that if they want to make alterations to the property, their rent will go up $150 a month. c. Inform the landlord that not all disabilities are visible, and warn them they could be violating the Fair Housing Act by refusing the accommodation. d. Tell the tenant the landlord said no, because they are not a wheelchair user.

c

Landlords are required to allow tenants to make modifications to their property in order to accommodate their disability. Who's responsible for paying for these modifications? a. the landlord b. the local city government c. the tenant d. 50/50 split between the tenant and landlord

c

Which of the following phrases would be considered discriminatory if used in an advertisement? a. "hardwood floors" b. "located near the university" c. "Christian neighborhood" d. "2-2 available for rent in Central Brooklyn"

c

requires lenders to disclose specific lending information for HUD to map lending patterns also allows HUD to spot problematic lending patterns and helps support lawsuits or other disciplinary measures, which act

home mortage discolsure act

Carla has clients looking for a rental property who only speak Spanish. What should she do to accommodate them?

provide them with the official translated lease forms

You are working with a Black buyer, Tom, and you decide to show him homes in a neighborhood with a high Black population. This illegal act is known as:

steering