Module 8: Fair Housing
Investor Stu wants to accumulate several properties for a commercial deal. To induce the homeowners to sell, he buys one home and moves in a large Somali family. The he tells his neighbors that the new family will cause the property values to drop so they had better sell to him now. This could be an example of A.) Blockbusting B.) Channeling C.) Redlining D.) Steering
A
What is steering? A.) Leading prospective homeowners to or away from certain homes B.) Refusing to make loans to certain areas because of their ethnic makeup C.) Refusing to help prospective buyers locate housing because of their race, color, creed, national origin, handicap, or familial status D.) Suggesting an owner should sell now because property values are expected to decline as more and more minorities infiltrate the area
A
Which amendments are also referred to as the Reconstruction Amendments? Select all that apply A.) 12 B.) 13 C.) 14 D.) 15 E.) 16 F.) 17
B, C and D
Unlimited punitive damages may be levied against a guilty party of a fair housing complaint by which entity? A.) Administrative law judge B.) Broker C.) Federal court judge D.) Local court
C
Which of the following landmarks is the only acceptable item to be included in advertising to assist potential buyers with directions to a particular property? A.) Around the corner from Temple Bethlehem B.) Just east of the Asian market C.) One mile north of the Martin Luther King Jr. cultural center D.) Two blocks past the county courthouse
D
Which of the following questions could not be construed as being discriminatory in nature when asked of a buyer? A.) Do you have children? B.) How many family members will be living with you? C.) What church do you attend? D.) What type of houses are you looking for?
D
Which tenant would not be considered disabled under the Fair Housing Act? A.) Tenant A, who is an alcoholic B.) Tenant B, who was diagnosed with bi-polar disorder C.) Tenant C, who is a paraplegic and is confined to a wheelchair D.) Tenant D, who is addicted to his wife's pain medication
D
A violation of the ADA could result in a ___________ penalty of $55,000 for a first violation A.) Civil B.) Criminal C.) Legislative D.) Regulatory
A
In 1987, the Supreme Court upheld the Civil Rights Act against discrimination based on _____________ as well as race A.) Ancestry B.) Marital status C.) Religion D.) Sex
A
Which of the following terms is acceptable to describe a prestigious community location of a listed property? A.) Exclusive B.) Gated C.) Private D.) Restricted
B
A Hispanic applicant applies to a mortgage company for a home loan and is refused based on the reputation of the neighborhood for a high number of foreclosures. This is an example of A.) Blockbusting B.) Puffing C.) Redlining D.) Steering
C
The choice of using the Equal Opportunity Housing logotype, statement, or slogan in space advertising is based upon A.) Market reaction B.) Personal preference C.) Size of the advertisement D.) Type of advertisement
C
Which of the following, is not restricted by the Elliott-Larsen Civil Rights Act? A.) Blockbusting B.) Coercion C.) Price-fixing D.) Racial steering E.) Redlining F.) Retaliation
C Price-fixing is an antitrust violation
Complaints must be filed with the Michigan Civil Rights Commission within ________ days after the alleged unfair housing practice occurred A.) 30 B.) 60 C.) 90 D.) 180
D
If an advertisement states "perfect for couples first starting out," is it discriminatory? A.) Yes B.) No
Yes
T or F: Brokers never engage checkers to test their own salespeople
False
T or F: Self-testing results can be used against the brokerage in a fair housing violation case
False
T or F: Testing is a method used by law enforcement to entrap licensees
False
T or F: The federal Fair Housing Act requires that all real estate brokerages conduct self-testing no less than every five years
False
T or F: Joe owns a restaurant on the edge of town. His menus are not available in Braile. According to the Americans with Disabilities Act, he could be accused of discriminating against vision impaired individuals
False Since the waiter or another employee could read the menu to a vision impaired diner, Joe's restaurant is not in violation
T or F: A licensee can be tested only once a year
False Testing can occur at any time and as many times as it takes to investigate a complaint
T or F: Jay received a purchase contract on a home he had listed. Jay disclosed the fair housing laws to the seller after receipt of the purchase contract. Jay has followed the correct procedure regarding disclosure of fair housing laws
False The licensee must disclose the fair housing laws regarding discrimination at first content to eliminate confusion
T or F: The five titles of the Americans with Disability Act are Title I- Employment, Title II-Public services (and public transportation, Title III-Public Accommodations, Title IV-Telecommunications, and Title V- Miscellaneous Provisions
True
T or F: Voluntary Affirmative Marketing Agreements are designed to promote fair housing to all home seekers
True
A real estate agent sells a home to a Mexican buyer in a primarily African-American neighborhood. Another agent goes door-to-door to warn neighbors that the quality of the neighborhood will change and they should consider selling. Under the Elliott-Larsen Civil Rights Act, this prohibited act is called A.) Blockbusting B.) Coercion C.) Redlining D.) Retaliation
A
A real estate agent sells a home to an Asian buyer in a primarily Caucasian neighborhood. Another agent in the brokerage learns of this and encourages neighbors to list their properties for sale based on the premise that property values will decline. Is this a violation of fair housing laws? A.) Yes B.) No
A
In an advertisement for a four-bedroom home, which of the following statements is considered discriminatory? A.) Beautiful home in an exclusive neighborhood B.) Family home near community recreation center C.) Ideal home for a growing family D.) Large, four-bedroom on a quiet cul-de-sac
A
When a real estate agent holds a property listing and the seller discriminates, the agent A.) Can be held liable B.) Can possibly be held liable C.) Cannot be held liable D.) Is automatically guilty
A
Which was the first major legislation to directly affect equal rights to ownership of real property A.) Civil Rights Act of 1866 B.) Civil Rights Act of 1875 C.) Civil Rights Act of 1883 D.) Emancipation Proclamation
A
As amended in 1988, the federal Fair Housing Act allows for a fine up to what amount for a single first offense to be imposed by an administrative law judge? A.) $10,000 B.) $25,000 C.) $50,000 D.) $75,000
A A federal court judge my impose a fine of up to $25,000 for the same offense
An award of civil damages in a discrimination suit may impose a fine of up to what amount for a first Fair Housing violation? A.) $10,000 B.) $25,000 C.) $50,000 D.) $100,000
A Civil penalties for a first violation are up to $10,000, up to $25,000 for another violation occurring within 5 years, and up to $50,000 for 2 more more violations within 7 years
You have a buyer that requests to see only neighborhoods of a specific racial makeup. Should you ask to get this request in written form? A.) Yes B.) No
A Never render an opinion regarding the racial makeup of the area. Direct your client to local libraries, government offices, or online sources where statistical data is available
According to the federal fair housing laws, a homeowner offering a single-family home for rent is A.) Exempt B.) Limited C.) Non-exempt D.) Restricted
A Single-family housing is exempt from federal fair housing laws if the owner owns no more than three such homes at one time, no discriminatory advertising is used, and no real estate professional is used. This is also known as the Mrs. Murphy Exemption
Dave inquiries about an apartment owned by the United Methodist Church. He is turned down as an applicant because he is not a Methodist. Is this legal? A.) Yes B.) No
A The Elliott-Larsen Civil Rights Act does not cover the sale, rental, or occupancy of dwellings that a religious organization owns or operates for other than a commercial purpose to persons of the same religion, if membership in that religion is not restricted on account of race, color, or national origin
A real estate agent sells a home to a minority buyer in a primarily Caucasian neighborhood. Another agent in that real estate brokerage learns of this and notifies the neighbors and encourages them to list their property for sale before anyone else learns of the new neighbor based on the premise that the property values will decline. Is this a violation of fair housing laws? A.) Yes B.) No
A This is an example of blockbusting
Which building(s) are exempt under Title III of the Americans with Disabilities Act? Select all that apply A.) Elks Club B.) Historical buildings at Colonial Williamsburg C.) Presbyterian church D.) State capitol building
A, B, and C
A real estate brokerage is placing a "home for sale" ad for a client in the local newspaper. Who can be held liable for discriminatory real estate advertising? Select all that apply A.) Brokerage B.) Client C.) Local newspaper D.) Real estate agent
A, C, and D
Which situation describes blockbusting? A.) A bank refused to lend to residents of certain neighborhoods because of their racial makeup B.) A broker moves a minority person into a neighborhood with the intent of buying other houses in the neighborhood at a greatly reduced price C.) A salesperson shows a minority client only properties in areas mostly populated by the same minority D.) Despite the all-Caucasian character of a neighborhood and the implication the seller would like to see it remain that way, the broker insists on showing the property to minority buyers who've expressed interest in the area
B
Each of these two-story building (with less than 3,000 square feet per floor) would require an elevator to comply with the ADA except a A.) Bus terminal B.) Church C.) Medical office D.) Shopping center
B Elevators are generally not required if the building is under three stories and smaller than 3,000 square feet per floor, unless the building is a shopping center, professional health care office, or public transportation facility
A private homeowner in Detroit, MI, is looking for a tenant to lease her house for one year while she travels abroad. She plans to return after the year is up and move back into the home as her primary resident. Is it illegal for her to refuse a lease to an unmarried mother of three under MI law? A.) Yes B.) No
B Leasing a primary residence for one year or less with the intent to return and utilize it as your primary resident is exempt under the Elliott-Larsen Act. It is not illegal in this case to discriminate against the protected classes with the exception of race under MI law
The maximum amount of money that be awarded in a civil violation of the American with Disabilities Act for a first offense is A.) $25,000 B.) $55,000 C.) $100,000 D.) Unlimited
B The Attorney General may assess a civil penalty, not to exceed $55,000 for a first violation
Frank, a real estate agent in Lansing, MI, is found guilty of violating the Michigan Civil Rights Act. Which of the following actions could be enforced by the Department of Licensing and Regulatory Affairs? Select all that apply A.) Community service B.) Fine up to $10,000 C.) Revoke their license D.) Suspend their license
B, C, and D
T or F: The federal Fair Housing Act advertising guidelines on the use of certain wording, phrases, and symbols pertain to print media only
False These guidelines also pertain to all types of media (print, television, radio, online) and including the MLS
T or F: The Civil Rights Act of 1866 prohibited private citizens from racial discrimination in restrictive covenants
False Early cilc rights laws were originally interpreted only to prohibit discrimination that involved state action that is, action by a federal, state, or local governmental body
T or F: Helen, a licensee with Taylor & Barnes Realty Group, is selling her own home through the local newspaper; however, she decides she does not want to sell to anyone of the Muslim faith. Because she is selling her own home, she is exempt from the fair housing laws
False Licensees must follow fair housing laws at all times
T or F: Exemptions that exist under federal law will always be exemptions under state Civil Rights Laws
False Some exemptions, which are permitted under federal law, may not be exemptions under some state Civil Rights Laws
T or F: Of the ten commandments comprising the Bill or Rights, the most important to the movement toward equality in real estate matters is the Second Amendment
False The 5th Amendment
T or F: A private deed restriction imposed by a sales agreement or other contract that prohibits the renting or selling of real property to a person because of that person's status as a member of a protected class will supersede both federal and state fair housing laws if all of the elements of a contract are properly met
False This type of private restriction was declared illegal in 1948
A handicapped tenant wants a wheelchair constructed at the entrance to an older apartment building and asks the landlord for permission to build one. The tenant agrees to cover all costs in addition to having the ramp removed (at his own expense) when he leaves. The owner thinks the ramp will detract from the building appearance and declines the tenant's request. Is this legal? A.) Yes B.) No
No
T or F: A homeowner renting a room in a single-family home is exempt from the Persons with Disabilities Civil Rights Act, as long as the homeowner or a member of their immediate family continues to reside in the home
True
T or F: Advertisements using phrases such as, "great place to raise a family" or "walking distance to mosque" can infer that single may not be welcome, or that individuals of non-Muslin faith are discouraged from purchasing in the neighborhood
True
T or F: In addition to the federally protected classes, the Persons with Disabilities Civil Rights Act and the Elliott-Larson Civil Rights Act prohibit discrimination for height, weight, marital status, and arrest record
True
T or F: John, who is a disabled veteran with a prosthetic leg, is denied use of a public swimming pool, even though he has the ability to access to pool independently. This is a violation of the Americans with Disabilities Act
True
T or F: The Civil Rights Act of 1866 prohibits racial discrimination in ALL property transactions
True
T or F: The Civil Rights Act of 1866 protects both real and personal property
True
T or F: The Office of Fair Housing and Equal Opportunity (FHEO), a division of HUD, is responsible for the administration and enforcement of federal laws
True
T or F: The method of testing by a HUD tester will not be disclosed in order to allow for future testing by the same method
True
T or F: The use of the Fair Housing logo, statement, or slogan is required for advertisements, yard signs, letterhead, or business cards
True
T or F: Treating people unequally because of their race, religion, sex, national origin, age, or some characteristic of a protected class, is a violation of civil rights laws
True
T or F: Under federal law, a person who owns three or fewer single-family houses is exempt from the federal Fair Housing Act, with regard to decisions based on race, when renting or selling one of the houses
True
T or F: Willful violation of fair housing laws may be a felony criminal offense
True
T or F: In Buchanan v. Warley, the Supreme Court ruled that the ordinance violated the Fourteenth Amendment's due protection clause
True ...invading the civil right to "acquire, enjoy, and use property, which is guaranteed in equal measure to all citizens, white or colored"
If a property has wheelchair ramp, can that feature be advertised? A.) Yes B.) No
Yes
If an ad refers to a church of synagogue as a geographical point of reference to help people find the property, can that be discriminatory? A.) Yes B.) No
Yes
An Italian couple determines that they would be best suited to live in an area populated by a high percentage of their nationality. They ask to see housing in these areas only. Prior to a specific legal request by the consumer, is it unlawful to limit the search based on any criteria other than price and physical makeup of the property? A.) Yes B.) No
Yes Unless provided a specific legal request by the consumer. It is always best to request the instructions in writing to prevent future claims violation
T or F: Both the Elliott-Larsen Civil Rights Act and the Persons with Disabilities Civil Rights Act prohibit discrimination in housing
True
Each of these individuals would be protected under the disability clause of the federal Fair Housing Act except A.) A blind man B.) A heroin addict who is unable to work C.) A teenager in a wheelchair D.) A woman taking medication for schizophrenia
B
If a salesperson is taking a listing and the seller states that he wished to sell only to members of a particular race, the salesperson should A.) Comply with the seller's wishes B.) Refuse to take the listing C.) Say he must consult with his broker before making a decision D.) Take the listing but ignore the seller's request
B
Of the ten commandments comprising the Bill of Rights, which amendment is most important to the movement toward equality in real estate matters? A.) First Amendment B.) Fifth Amendment C.) Seventh Amendment D.) Eighth Amendment
B
The Department of Housing and Development is not responsible for administering the A.) Americans with Disabilities Act B.) Equal Credit Opportunity Act C.) Federal Fair Housing Act D.) Housing and Community Development Act
B
The federal Fair Housing Act prohibits discrimination based on race, color, religion, national origin, disability, and A.) Age B.) Familial status C.) Marital status D.) Sexual orientation
B
The Elliott-Larsen Civil Rights Act prohibits discrimination against A.) Religion, race, color, national origin, age, sex, height, weight, familial status, and arrest record B.) Religion, race, color, national origin, age, height, weight, familial status, marital status, and arrest record C.) Religion, race, color, national origin, age, sex, height, weight, familial status, marital status, and arrest record D.) Religion, race, color, national origin, age, sex, height, weight, familial status, and marital status
C
Which of the following landmarks is the only acceptable item to be included in advertising to assist potential buyers with directions to a particular property? A.) Around the corner from the Hispanic Outreach Center B.) Next to the Indian market C.) One block south of Festival Shopping Mall D.) Within walking distance of St. Mary's Catholic Church
C
Under the federal Fair Housing Act, which of these landlords can legally refuse to rent to a couple because they have a ten-year old daughter? Assume that no real estate agent is involved and no discriminatory advertising is used A.) The owner of a five-unit apartment B.) The owner of a large apartment complex who has a long, established policy of not renting to young couple with children C.) The owner of a single-family home who owns another single-family home D.) All the above
C The federal Fair Housing Acts familial status protection doesn't apply to a single-family home sold or rented by a private individual owner; provided that the owner owns no more than three such homes at one time and no discriminatory advertising or real estate broker (or any real estate professional is used)
The intent of the Bill of Rights was to protect: A.) All persons living in the U.S. B.) Native Americans and whites C.) White men D.) White men and women only
C The Bill of Rights did not apply to slaves or Native Americans, who continued to be governed by other laws. Women were also largely ignored and unprotected
Displaying the fair housing poster in a brokerage office is A.) Not suggested B.) Optional C.) Recommended D.) Required
D
Individuals who believe that they have been a victim of unfair housing practices may A.) File a complaint with a local commission on human relations B.) File a complaint with the Michigan Civil Rights Commission C.) File a private civil lawsuit D.) Proceed using any of these courses of action
D
Jackie, who is deaf, wants to rent an apartment, but she needs to replace the doorbell with a light that flashes. The landlord would be in violation of the Fair Housing Act if he A.) Allows Jackie to pay for the installation but makes her promise to remove the doorbell once her lease is up B.) Installs the light at his own expense C.) Installs the light himself, but makes Jackie supply the materials D.) Refuses to allow Jackie to install the light
D
The Equal Housing Opportunity slogan may be used in place of the Equal Housing Opportunity statement and logo under which of the following circumstances? A.) When the ad is less than 1/4 page B.) When the ad is less than 1/2 page C.) When the ad is less than one full page D.) When the ad is less than four column inches
D
When HUD utilizes individuals, fictitiously posing as customers or clients attempting to secure the same real estate services, this is known as A.) Entrapment B.) Faking C.) Spying D.) Testing
D
When real estate agents make assumptions about the types of neighborhoods where their clients would like to live and limit available properties to one those neighborhoods instead of showing all housing options available, they are practicing illegal A.) Blockbusting B.) Coercion C.) Redlining D.) Steering
D
Which of the following describes the Supreme Court decision in Plessy v. Ferguson (1896)? A.) A court may not constitutionally enforce a "restrictive covenant" which prevents people of certain race from owning or occupying property B.) Jews, Arabs, Greeks, and other ethnic groups are protected C.) Racial discrimination is prohibited by any party in the sale or rental of real estate D.) The court ruled in favor of a "separate but equal" doctrine of legalized racial segregation
D
Which of the following is not included as a protected class by the federal Fair Housing Act? A.) Handicap B.) National origin C.) Religion D.) Sexual orientation
D