Chapter 5- Texas Principles of Real estate

Conciliation

A conciliation agreement must protect both the person filing a complaint with HUD and the public interest. If a conciliation agreement is signed, HUD will take no further action on the complaint. However, if HUD has reasonable cause to believe that a conciliation agreement is breached, HUD will recommend that the attorney general file suit.

Which is not a true statement about the Americans with Disabilities Act?

A duplex owner might need to remodel the kitchen in the rental unit to accommodate persons with disabilities.

Who would not be protected under the protected class referred to as "familial status"?

A parent with a 24-year-old son.

Testing

A simulated housing transaction designed to obtain evidence of differential treatment based on an individual's protected class status.

Fair Housing Amendments Act (1988)

Added handicap and familial status If a person has a physical or mental disability/handicap, a property owner may not: refuse to let the person make reasonable modifications to the dwelling or common use areas so he or she can use the housing. refuse to make reasonable accommodations in rules, policies, practices, or services if necessary for the person to use the housing.

Housing and Community Development Act (1974)

Added sex to the list of protected classes

What type of changes might a commercial property make to bring a property into ADA compliance?

Adding ramps to the front entrance or accessible parking spaces Widening doorways or aisles Installing elevators Improving restroom facilities by adding wider stalls, higher toilets, or grab bars (Licensees should alert their commercial and investor clients of the law and the need to have their leases professionally evaluated and their offices inspected for compliance.)

Discriminatory Advertising

Advertising that indicates a preference, limitation, or discrimination based on race, color, religion, handicap, sex, familial status, or national origin.

What is the definition of discriminatory advertising?

Advertising that indicates a preference, limitation, or discrimination based on race, color, religion, handicap, sex, familial status, or national origin.

What is NOT an example of discrimination?

Buyers and renters asking very attentively about the night clubs and discoes in the neighborhood

Steering

Channeling homebuyers toward or away from homes in certain neighborhoods in order to preserve or alter the makeup of that neighborhood.

Which of the following statements would be considered discriminatory?

Couples only

Scenario: A buyer is interested in living in an area where he will be surrounded by members of his own race. If someone asks to see the Hispanic-only areas, what do you do?

Explain to the buyer that showing her homes in Hispanic-only areas, as they requested, would be violating fair housing laws.Remember, showing properties based on the ethnic makeup of the neighborhood could bring about a "steering" charge against you.

Which of the following is not a protected class under the Federal Fair Housing Act?

Financial status

What housing is exempt from the familial status protected class?

Housing for older persons is exempt if one of the following conditions exists: The HUD Secretary has determined that it is specifically designed for and occupied by elderly persons under a federal, state or local government program Only persons who are 62 and older occupy the property It houses at least one person who is 55 or older in at least 80% of the occupied units. It also adheres to a policy that demonstrates the intent to house persons who are 55 or older

An ad should never read males only, men only, females only, or other like phrases, with one exception. What is that exception?

If the ad is describing shared living areas or homes used exclusively as dormitories by educational institutions

When did the Fair Housing Act that prohibited discrimination in housing based on race, color, religion or national origin taken place?

In 1968

What is significant about the Fair Housing Amendments Act of 1988?

It added handicap and familial status to the list of protected classes.

Blockbusting

Making a profit by persuading owners to sell by telling them that persons of a protected class are moving into the neighborhood. Then suggesting that this move will have detrimental results, such as the lowering of the property values, an increase in criminal behavior, or a decline in the quality of the schools in the area.

Disparate Impact

Policies that are considered to be discriminatory if they have a disproportionate "adverse impact" against any protected class based upon race, nation of origin, color, religious beliefs, sex, familial status, or disability when there are other valid non-discriminatory options available.

Give four examples of words or phrases that would be considered discriminatory in advertising.

Potential responses include: Couples only Empty nesters Single person No families Mature individuals Senior discount

Fair Housing Act of 1968 (title VIII of the Civil Rights Act of 1968)

Prohibited discrimination in housing based on race, color, religion, or national origin

As you've learned, there are many steps a broker should take to ensure compliance with fair housing laws. List 2 of these steps.

Prominently display in all offices the Equal Opportunity Poster that HUD distributes Provide ongoing training and education to all affiliated licensees. Brokers can do that by holding seminars and workshops, watching videos, and bringing in guest speakers

What kind of houses were called "separate but equal" with a Supreme Court decision?

Racially segregated accommodations

List 4 practices that would be considered discrimination in mortgage lending.

Refusing to give a loan or provide loan information Refusing to purchase a loan Setting different conditions for a loan purchase Giving different terms for loans, such as interest rates or fees

What should brokers not do?

Report to the proper authority, if he noticed a security camera

Redlining

Restricting the number of loans in certain areas of a community because of its racial or ethnic makeup.

Jones v. Mayer

Ruled that discrimination on the basis of race is strictly prohibited This means there can be no exemptions or exceptions with regard to race.

Scenario 1: You decide to show a white couple properties in areas that only other whites occupy.Scenario 2: You decide to show African-American buyers homes that are in integrated areas or areas occupied only by African Americans.These scenarios are examples of which fair housing violation?

Steering

What are persons called who pose as customers to check on fair housing compliance?

Testers

What investigative tool has private fair housing groups, along with government agencies, going undercover to find housing discrimination?

Testing (The tester will pose as a customer to check on fair housing compliance.)

How can testing be beneficial?

Testing, coupled with good documentation and record keeping, can demonstrate a real estate agency's innocence when faced with a fair housing complaint.

Owners of small, public businesses must remove physical "barriers" that are "readily achievable." "Readily achievable" means easy to accomplish without much difficulty or expense. What is the "readily achievable" requirement based on?

The "readily achievable" requirement is based on the size and resources of the business.

Americans with Disabilities Act (ADA)

The Americans with Disabilities Act became a law in 1990. ADA mandates that persons with disabilities have equal access to jobs, public accommodations, government services, public transportation, and telecommunications.

HUD distributes what to promote fair housing practices?

The Equal Opportunity Poster

Fair Housing

The Federal Fair Housing Act prohibits discrimination in the sale or rental of housing on the basis of race, color, religion, national origin, sex, handicap, and familial status.

What could happen if one of your sellers declines to show a property to minorities or members of other protected classes?

This is illegal. Both you and your seller could be sued for violating fair housing laws.

Equal Credit Opportunity Act (ECOA)

This prohibits lenders from discriminating against applicants on the basis of race, color, religion, national origin, sex, marital status, age, or dependency on public assistance.

Home Mortgage Disclosure Act (HMDA)

This was passed in 1975. It requires financial institutions to maintain and disclose data about home purchases, home purchase pre-approvals, home improvement, and refinance applications involving one to four unit and multi-family dwellings. This data must be disclosed annually.

Which of the following phrases would not be considered discrimination that is based on familial status?

Two-bedroom property

When advertising by newspaper, how could you avoid an impression of racial steering?

Use a wide variety of newspapers, not just the local or neighborhood paper

If a person feels like he or she has been discriminated against, how long does that person have to file a complaint?

With the U.S. Department of Housing and Urban Development: within one year of the alleged act In state or federal court: within two years of the alleged act

Within what time can a person file a suit in a state or federal court of the alleged violation?

Within 2 years

Testing for fair housing compliance must:

be recognized as a risk and a cost of doing business.

When it comes to Fair Housing, what kind of responsibility do real estate licensees have to their clients?

ethical

In a process known as ___________, dwellings that were formerly occupied by middle- and upper-income families decline in quality and value and become available to lower-income families.

filtering down

The Community Reinvestment Act mortgage lender's rating scale system goes from:

outstanding to substantial noncompliance.

If the ALJ decides that discrimination occurred, the respondent can NOT be ordered:

to pay the Federal Government $60,000 as a civil penalty to vindicate the public interest.