Unit 18 Exam Questions Fair Housing
A prospective homebuyer who is African-American asks about the availability of a home in a predominantly white residential neighborhood for which the prospective buyer has been financially qualified. What should the broker say to this prospect? A) "I'd be happy to show you homes in other areas where newcomers are welcome." B) "You wouldn't want to live in that area because the neighbors aren't very friendly." C) "The residents there don't want the community to become too diverse." D) "I'll be pleased to show you houses in that area."
The answer is "I'll be pleased to show you houses in that area." The broker must not channel homeseekers toward or away from particular neighborhoods based on race, which would be the illegal practice of steering.
A prospective homebuyer who is African-American asks about the availability of a home in a predominantly white residential neighborhood for which the prospective buyer has been financially qualified. What should the broker say to this prospect? A) "I'll be pleased to show you houses in that area." B) "I'd be happy to show you homes in other areas where newcomers are welcome." C) "You wouldn't want to live in that area because the neighbors aren't very friendly." D) "The residents there don't want the community to become too diverse."
The answer is "I'll be pleased to show you houses in that area." The broker must not channel homeseekers toward or away from particular neighborhoods based on race, which would be the illegal practice of steering.
Which of the following is NOT permitted under HUD's advertising guidelines? A) "Wheelwhair ramp" B) "Married couples only" C) "Good neighborhood" D) "Family room"
The answer is "married couples only". That statement discriminates on the bases of familial status.
The fine for a first violation of the federal Fair Housing Act could be as much as A) $37,525. B) $19,987. C) $100,000. D) $65,654.
The answer is $19,987. A fine of not more than $19,987 is possible for a first violation.
Upon receiving a complaint, HUD initiates an investigation and makes a determination to bring charges or dismiss the complaint within A) 100 days of the filing of the complaint. B) 180 days of the filing of the complaint. C) 30 days of the filing of the complaint. D) 120 days of the filing of the complaint.
The answer is 100 days of the filing of the complaint. Upon receiving a complaint, HUD initiates an investigation and makes a determination to bring charges or dismiss the complaint within 100 days of the filing of the complaint. During this period, HUD can attempt to resolve a dispute informally through the process called conciliation.
The provisions of the ADA apply to any employer with at least A) 10 or more employees. B) 5 or more employees. C) 12 or more employees. D) 15 or more employees.
The answer is 15 or more employees. Employers must make reasonable accommodations that enable an individual with a disability to perform essential job functions.
The Supreme Court decision that ended the separate but equal doctrine of legalized racial segregation was A) the Civil Rights Act of 1866. B) Plessy v. Ferguson. C) the Civil Rights Act of 1968. D) Brown v. Board of Education.
The answer is Brown v. Board of Education. The separate but equal doctrine of racial segregation was ended by the U.S. Supreme Court's 1954 decision in Brown v. Board of Education.
Which agency, upon receiving a complaint regarding a Fair Housing Act violation, investigates? A) ADA B) DOJ C) HOPA D) HUD
The answer is HUD. The federal Fair Housing Act is administered by the Office of Fair Housing and Equal Opportunity under the direction of the secretary of HUD. Upon receiving a complaint, HUD initiates an investigation.
Which agency provides for display the Equal Opportunity Poster? A) HUD B) ADA C) Fannie Mae D) HOPA
The answer is HUD. When HUD investigates a real estate broker for discriminatory practices, it may consider failure to prominently display the equal housing opportunity poster in the broker's place of business as evidence of discrimination.
The 1896 U.S. Supreme Court case that upheld racial segregation in public facilities and the 1954 case that overturned it are A) Plessy v. Ferguson and Jones v. Mayer. B) Marbury v. Madison and Jones v. Mayer. C) Plessy v. Ferguson and Brown v. Board of Education. D) Jones v. Mayer and Wells v. State Manufactured Homes.
The answer is Plessy v. Ferguson and Brown v. Board of Education. Plessy established the "separate but equal" doctrine, but the Brown decision overturned it by holding that separate schools for black and white students are inherently unconstitutional.
The federal law we call the Fair Housing Act is A) the Civil Rights Act of 1866. B) a regulation of the Department of Housing and Urban Development. C) Title VIII of the Civil Rights Act of 1968. D) part of the Housing for Older Persons Act.
The answer is Title VIII of the Civil Rights Act of 1968. The law has been amended since then by the Housing and Community Development act of 1974 and the Fair Housing Amendments Act of 1988, so that it now prohibits discrimination in housing based on race, color, national origin, religion, sex, familial status, or disability.
The Fair Housing Act prohibits discrimination created by redlining A) on grounds of race or national origin, but not for any other reason. B) unless an area is redlined because it has historically been considered undesirable. C) if actual economic harm can be demonstrated. D) an area that will not be the subject of marketing and/or lending efforts.
The answer is an area that will not be the subject of marketing and/or lending efforts. A lending institution can refuse to make a loan for sound economic reasons, but it may not refuse to make a loan based solely on the location of the property. In the same way, real estate professionals may not effectively set some areas apart as unsuitable for marketing property because of the protected classification of the residents of the area.
State licensing rules may provide fines for a violation of fair housing laws A) as well as the suspension of an offender's license. B) as well as the suspension or revocation of an offender's license. C) but usually do not subject the offender to criminal prosecution. D) but usually do not provide for suspension or revocation of an offender's license.
The answer is as well as the suspension or revocation of an offender's license. State licensing rules may provide for fines for a violation of fair housing laws as well as the suspension or revocation of an offender's license. Such penalties are apart from, and in addition to, any penalty imposed for violation of federal, state, or local fair housing laws.
Failure of the real estate professional to comply with fair housing laws is A) only a violation of real estate licensing law in most states. B) a criminal violation but not grounds for disciplinary action against the real estate professional. C) a civil violation, which must be pursued in court by the victim. D) both a civil and a criminal violation and grounds for disciplinary action.
The answer is both a civil and a criminal violation and grounds for disciplinary action. Failure of the real estate professional to comply with fair housing laws is both a civil and a criminal violation and constitutes grounds for disciplinary action against a real estate professional.
Real estate professionals must scrutinize their business practices and be particularly careful NOT to fall victim to A) scams by "advisors" that would lead them into discriminatory practices. B) local city or county employees who lead them into discriminatory practices. C) clients or customers who expect professionals to discriminate. D) other real estate brokers who lead them into discriminatory practices.
The answer is clients or customers who expect to discriminate. Real estate professionals must also reject illegal practices of other real estate professionals based on "the way we've always done things," officials who expect a pattern of discrimination, and schemes that are too good to be true.
The federal Fair Housing Act does NOT prohibit A) discriminatory advertising. B) blockbusting. C) discriminating on the basis of marital status. D) redlining.
The answer is discriminating on the basis of marital status. Marital status is not one of the seven protected classes under the federal Fair Housing Act.
The civil rights laws that affect the real estate industry help ensure that A) home sellers report on the reasons for rejecting any offers. B) community revenues are enhanced through greater home sales. C) everyone has the opportunity to live wherever they can afford to live. D) communities are able to attract developers to build and offer homes for sale.
The answer is everyone has the opportunity to live wherever they can afford to live. The civil rights laws that affect the real estate industry help ensure that everyone has the opportunity to live wherever they can afford to live.
A real estate broker sends a bright yellow flyer to all the homeowners in a neighborhood. The flyer contains a reprinted article from a local newspaper describing the future relocation plans of various employers in the region and this statement, printed in bold red letters: "Warning! The failure to sell your property within the next six months could cost you a bundle!" At the bottom of the page was printed the broker's name, photo, office address, and phone number. Based on these facts, the broker A) is guilty of blockbusting. B) is guilty of steering. C) has violated the HUD advertising guidelines. D) has committed no offense.
The answer is has committed no offense. Although perhaps in poor taste, the broker is simply distributing a published newspaper article to which anyone has access. He is also not making any statements about a protected class of people moving into the neighborhood.
Someone who is the victim of discrimination under the Fair Housing Act may seek damages that can include noneconomic injuries, such as A) lost wages. B) deferred compensation. C) property loss. D) humiliation.
The answer is humiliation. The Fair Housing Act allows a victim of discrimination to seek both economic and noneconomic damages, which can include humiliation, embarrassment, inconvenience, and mental anguish.
Housing that qualifies for exemption from familial status provisions A) includes housing intended for persons 50 or older. B) is not permitted under the federal Fair Housing Act. C) is permitted for owner-occupied buildings with four or more units. D) includes a restriction that 80% of the units be occupied by persons 55 or older.
The answer is includes a restriction that 80% of the units be occupied by persons aged 55 or older. The Fair Housing Act allows for two exemptions to familial status protection in housing for older persons. One permissible exemption is for housing in which 80% of the units are occupied by persons 55 years of age or older.
Under the Fair Housing Act, what is HUD's first action on receiving a complaint of illegal discrimination? A) Investigates for reasonable cause to bring a charge B) Issues an injunction against the offender C) Files a civil action in federal district court D) Holds an administrative hearing
The answer is investigates for reasonable cause to bring a charge. Within 100 days of the filing of the complaint, HUD either determines that reasonable cause exists to bring a charge of illegal discrimination or dismisses the complaint.
Why is the Civil Rights Act of 1866 unique? A) It contains "choose your neighbor" provisions. B) It has been broadened to protect the aged. C) It provides no exceptions that would permit racial discrimination. D) It adds welfare recipients as a protected class.
The answer is it provides no exceptions that would permit racial discrimination. Unlike other exemptions permitted under the federal Fair Housing Act of 1968, the Civil Rights Act of 1866 allows no exceptions that would permit discrimination on the basis of race.
Approved senior housing that does not allow children is A) legal because senior housing can discriminate based on age. B) illegal because this type of housing cannot be approved. C) illegal and a violation of fair housing laws. D) legal because this type of housing can discriminate based on familial status.
The answer is legal because this type of housing can discriminate based on familial status. Senior housing in which 80% of the housing is for age 55 and older are allowed to discriminate based on familial status. Age is not a protected class.
Real estate professionals may have a legal obligation to comply with the ADA because they A) may need to require reasonable accommodation in a home they have listed. B) often have clients with disabilities. C) may be employers. D) frequently own their own homes.
The answer is may be employers. Many real estate professionals are brokers who own an office, and the real estate office should be accessible to the public, including a person with a disability.
A seller tells a real estate professional "don't show my house to anybody not born in the United States." In this circumstance, the professional A) must show the house to anyone who wants to see it. B) may take the listing and hope that no foreign-born persons ask to see the property. C) may take the listing and ignore the instruction. D) must decline to take the listing with this requirement.
The answer is must decline to take the listing with this requirement. An instruction to not show the home to someone who was not born in the United States violates the Fair Housing Act. The real estate professional should not take the listing with this requirement. He cannot simply ignore the instruction or pretend it does not exist.
A homeowner decides to rent a spare bedroom in her single-family house to a tenant for $500 per month. When a 24-year-old man asks to see the room, the homeowner refuses, telling him that she will only rent to women over the age of 50. The prospective tenant threatens to sue for a violation of the Fair Housing Act on the basis of age. Should the homeowner be concerned? A) No, because there was no real estate professional involved in this transaction, the homeowner is free to discriminate on the basis of any of the normally protected classes. B) Yes, because while the homeowner is permitted to exclude individuals on the basis of age or sex, she cannot exclude on the basis of both. C) Yes, because the amount of rent being charged is immaterial for purposes of the Fair Housing Act. D) No, because the rental of rooms in an owner-occupied single-family home is exempt from the Fair Housing Act.
The answer is no, because the rental of rooms in an owner-occupied single-family home is exempt from the Fair Housing Act. The woman is exempt from the law because she will be renting a single room in her home.
A landlord rented an apartment to a person with a wheelchair. The landlord allowed the tenant to install bath rails and replace the bathroom sink vanity with a pedestal sink with lever faucet handles; however, the landlord required the tenant to sign a restoration agreement that the accommodations would be restored to their former condition at the end of the lease. In addition, the landlord required the tenant to pay sufficient funds (over a period of time) into an escrow account to cover the bathroom restoration. Has the landlord violated the Fair Housing Act? A) Yes, the landlord cannot require the escrow account. B) No, the landlord can require a restoration agreement and the escrow account. C) No, the landlord does not have to allow the tenant to make any of these modifications. D) Yes, the landlord cannot require restoration of the modifications.
The answer is no, the landlord can require a restoration agreement and the escrow account. The landlord must permit these reasonable modifications; however, the landlord can require the restoration agreement and escrow account.
An occupancy requirement is exempt from familial status protection under the Fair Housing Act if the housing is intended to be occupied by A) persons 62 years of age or older. B) at least one person in each unit who is 50 years of age or older. C) persons 55 years of age or older. D) at least one person age 60 or older in 80% of the units
The answer is persons 62 years of age or older. Housing is exempt from the familial status protections if it is intended for occupancy only by persons 62 years of age, or for occupancy in 80% of its units by at least one person 55 years of age or older. Strict rules for ongoing verification and reporting are imposed on this second alternative.
An occupancy requirement is exempt from familial status protection under the Fair Housing Act if the housing is intended to be occupied by A) persons 62 years of age or older. B) persons 55 years of age or older. C) at least one person in each unit who is 50 years of age or older. D) at least one person age 60 or older in 80% of the units.
The answer is persons 62 years of age or older. Housing is exempt from the familial status protections if it is intended for occupancy only by persons 62 years of age, or for occupancy in 80% of its units by at least one person 55 years of age or older. Strict rules for ongoing verification and reporting are imposed on this second alternative.
The Civil Rights Act of 1866 prohibits any limitation of property rights based on A) handicap. B) sex. C) race. D) religion.
The answer is race. The federal government's effort to guarantee equal housing opportunities to all U.S. citizens began with the passage of the Civil Rights Act of 1866. This law prohibits discrimination based on race.
Which statement describes the Supreme Court's decision in the case of Jones v. Alfred H. Mayer Company? A) Laws against discrimination apply only to federally related transactions. B) Persons with disabilities are a protected class. C) Sales by individual residential homeowners are exempted, provided the owners do not use real estate professionals. D) Racial discrimination is prohibited by any party in the sale or rental of real estate.
The answer is racial discrimination is prohibited by any party in the sale or rental of real estate. The Jones v. Mayer decision held that the Civil Rights Act of 1866, banning all limitation on property rights on the basis of race, is the law of the land. Racial discrimination by anyone in the sale or rental of any kind of property violates this law.
The act of directing homeseekers toward or away from particular areas, either to maintain or to change the character of the neighborhood, is A) steering. B) redlining. C) permitted under the Fair Housing Act of 1968. D) blockbusting.
The answer is steering. A person who guides prospects either toward or away from certain neighborhoods based on racial, ethnic, religious, or similar concerns is guilty of steering. This practice is outlawed by the federal Fair Housing Act. Whether it is done to promote housing segregation or integration or whether it was intentional or unintentional is immaterial.
A broker showing properties to a couple who has recently emigrated to the U.S. from Cuba intentionally selects properties exclusively in neighborhoods that she knows have some residents who are also immigrants from Cuba. This action likely constitutes A) perfectly legal activity. B) blockbusting. C) steering. D) panic selling.
The answer is steering. Steering occurs when a broker selects property to show based on a protected class characteristic. Blockbusting and panic selling are also violations of fair housing laws but do not match the definition of steering.
The first federal law to prohibit racial discrimination in the provision of housing was A) the Civil Rights Act of 1968. B) the Civil Rights Act of 1866. C) the Bill of Rights. D) the U.S. Constitution.
The answer is the Civil Rights Act of 1866. The law prohibits discrimination based on race in every property transaction and is still in effect.
Protection from threats or acts of violence against those who assist and encourage open housing rights is found in A) the Fair Housing Act. B) the Civil Rights Act of 1866. C) the Civil Rights Act of 1964. D) the rules of the Federal Communications Commission.
The answer is the Fair Housing Act. Under the Fair Housing Act, such threats, coercion, and intimidation are punishable by criminal action.
The legal framework that preserves the federal constitutional rights of citizens, including those that would be thwarted by discriminatory practices, has been created and protected by A) measures passed by the public in general elections. B) the U.S. Congress and U.S. Supreme Court. C) the actions of local jurisdictions, acting under the authority provided to the states. D) state legislatures.
The answer is the U.S. Congress and U.S. Supreme Court. The legal framework that preserves the federal constitutional rights of citizens, including those that would be thwarted by discriminatory practices, has been created and protected by the U.S. Congress and U.S. Supreme Court. Various presidential orders have also bolstered these rights.
The following ad appeared in the newspaper: "For sale: 4 BR brick home; Redwood School District; excellent Elm Street location; short walk to St. John's Church; and right on the bus line. Move-in condition; priced to sell." Which statement is TRUE? A) The fair housing laws do not apply to newspaper advertising. B) The ad describes the property for sale and is very appropriate. C) The ad should not mention St. John's Church. D) The ad should state that the property is available to families with children.
The answer is the ad should not mention St. John's Church. Reference to a nearby church implies religious preference. This violates HUD advertising regulations designed to enforce the Federal Fair Housing Act.
In a dispute before HUD, the term conciliation is BEST defined as A) the referral of the matter to a local agency. B) the equivalent of paying a fine. C) the informal resolution of a dispute by obtaining assurances that the person responding to the complaint will remedy the violation. D) the formal process under which the aggrieved party files a civil action in federal court.
The answer is the informal resolution of a dispute by obtaining assurances that the person responding to the complaint will remedy the violation. HUD can attempt to resolve the dispute informally through conciliation. Conciliation is the resolution of a complaint by obtaining assurance that the person against whom the complaint was filed will remedy any violation that may have occurred.
A single man with two small children has been told by a real estate professional that homes for sale in a condominium complex are available only to married couples with no children. Which statement is TRUE? A) Because a single-parent family can be disruptive if the parent provides little supervision of the children, the condominium is permitted to discriminate against the family under the principle of rational basis. B) Restrictive covenants in a condominium take precedence over the fair housing laws. C) The man may file a complaint alleging discrimination on the basis of familial status. D) Condominium complexes are exempt from the fair housing laws and can therefore restrict children.
The answer is the man may file a complaint alleging discrimination on the basis of familial status. The salesperson and, by implication, the broker and the property owners/principals have violated the prohibition against familial-status discrimination. Anyone in charge of one or more children under age 18 who is denied access because of the children is the victim of discrimination based on familial status.
All of the following would be permitted under the federal Fair Housing Act EXCEPT A) an owner refusing to rent the other side of the duplex in which she lives to a family with children. B) a Catholic convent refusing to furnish housing for a Jewish man. C) the owner of a 20-unit residential apartment building renting to men only. D) an expensive club in New York renting rooms only to members who are graduates of a particular university.
The answer is the owner of a 20-unit residential apartment building renting to men only. Sex is a protected category under the federal Fair Housing Act but the owner of the building doesn't qualify for any exception to the law. Even if the owner lives in one of the units, doesn't use a broker, and does not advertise discriminatorily, the property is not an exception to the law because it has more than four units.
If a real estate professional is the subject of threats or acts of violence brought about by compliance with the Fair Housing Act, A) a complaint should be made to the state real estate licensing agency. B) the perpetrator of the acts is punishable by criminal action. C) a civil action may be brought but no criminal action is permitted. D) there is no provision in the Fair Housing Act for recourse by the real estate professional.
The answer is the perpetrator of the acts is punishable by criminal action. The Fair Housing Act protects owners and real estate professionals who aid or encourage the enjoyment of fair housing rights. Threats, coercion, and intimidation are punishable by criminal action.
It is illegal for a lending institution to refuse to make a residential real estate loan in a particular area only because of A) the deteriorated condition of the premises. B) the physical location of the property. C) the applicant not being of legal age. D) the questionable economic situation of the applicant.
The answer is the physical location of the property. Redlining refers to literally drawing a line around particular areas and refusing to make loans in that area, rather than looking at the economic qualifications of the applicant.
A real estate sales associate does not show non-Latino clients any properties in traditionally Latino neighborhoods. The sales associate bases this practice on the need to preserve the cultural integrity of Latino immigrant communities. Which of the following statements is TRUE regarding the sales associate's policy? A) The policy has the effect, but not the intent, of steering. B) The policy is steering and violates fair housing laws, regardless of the sales associate's motivation. C) The sales associate is not attempting to restrict the rights of any single minority group; therefore, the practice does not constitute steering. D) The policy is steering, but it does not violate the fair housing laws because the sales associate is motivated by cultural preservation, not by exclusion or discrimination.
The answer is the policy is steering and violates fair housing laws, regardless of the sales associate's motivation. It is steering regardless of motivation, even if the client had asked to be shown property in such a neighborhood.
A landlord refuses to rent a vacant apartment to a couple with two small children because he is concerned the children will disturb the sick and elderly woman in the apartment next door. Which of these is most likely TRUE? A) The refusal constitutes a violation of the Fair Housing Act if the family and the elderly woman have different national origins. B) The refusal constitutes a violation of the Fair Housing Act because it discriminates on the basis of familial status. C) Because the landlord has good intentions, there is no violation of the Fair Housing Act. D) If the sick and elderly woman is over the age of 80, there is no violation of the Fair Housing Act.
The answer is the refusal constitutes a violation of the Fair Housing Act because it discriminates on the basis of familial status. Although the landlord's intent is to make things easier for the sick and elderly tenant, the refusal violates the Fair Housing Act by discriminating on the basis of familial status.
Complaints of discriminatory housing practices filed with HUD will be referred to a local enforcement agency if A) HUD determines that an administrative law judge should decide the case. B) the state or municipal law is substantially equivalent to the federal law. C) the complaint involves a real estate professional who is the victim of a threat or act of violence because the professional has complied with the fair housing laws. D) the federal law is substantially more inclusive than the state or municipal law.
The answer is the state or municipal law is substantially equivalent to the federal law. If a state or local law is substantially equivalent to the federal law, a complaint filed with HUD is referred to the local enforcement agency.
The landlord's lease prohibits tenants from altering the property in any way. A young woman who uses a wheelchair cannot maneuver over the doorstep into her apartment by herself. In addition, she cannot access the bathroom facilities in her wheelchair. Which of the following is TRUE? A) The tenant is entitled to make the necessary alterations. B) The landlord is responsible for making all apartments accessible to people with disabilities. C) The landlord should not have rented this apartment to the tenant. D) The tenant cannot remedy these conditions because of the terms of the lease.
The answer is the tenant is entitled to make the necessary alterations. People with disabilities must be permitted to make reasonable modifications to the premises at their own expense.
A person who believes illegal discrimination has occurred in violation of the Fair Housing Act may file a complaint with HUD A) within 1 year of the alleged act. B) no sooner than 6 months after occurrence of the alleged act of discrimination. C) within 2 years of the alleged act. D) at any time within 10 years of the alleged act of discrimination.
The answer is within 1 year of the alleged act. HUD also may initiate its own complaint.
Any aggrieved person who believes illegal discrimination has occurred may file a complaint with HUD A) within one year of the alleged act. B) within 18 months of the alleged act. C) no later than six months after the alleged act. D) within two years of the alleged act.
The answer is within one year of the alleged act. Any aggrieved person who believes illegal discrimination has occurred may file a complaint with HUD within one year of the alleged act.
A woman met with a landlord to view a two bedroom apartment. She has two children and is also pregnant. The landlord told her that the rules of the building allow only two children per two-bedroom apartment, so he cannot rent to her. Is this a violation of the Fair Housing Act? A) No, the Fair Housing Act allows property owners to limit the number of children in a development. B) Yes, indicating a preference for a certain number of children as occupants is illegal discrimination on the basis of familial status. C) Yes, until the third child is born, the woman meets the standards for the number of children in the family. D) No, rental standards can include a restriction on the number of occupants in an apartment.
The answer is yes, indicating a preference for a certain number of children as occupants is illegal discrimination on the basis of familial status. Occupancy standards must be based on objective factors, such as sanitation or safety, not number of children.