Unit 19: Test
What three additional protected classes does ECOA have that are NOT protected classes under the federal Fair Housing Act? A)Age, marital status, and public assistance income B)Age, marital status, and single people C)Credit score, age, and public assistance income D)Age, familial status, and public assistance income
A ECOA of 1974 prohibits discrimination in lending on the basis of race, color, religion, national origin, sex, age, marital status, and public assistance income. The seven protected classes under the federal Fair Housing Act are familial status, race, sex, handicap, color, religion, national origin.
Which of these is considered legal? A)Refusing to rent to a person with disability because they have a poor credit history and are unable to demonstrate sufficient income to pay the rent B)Refusing to rent a house to a person who has a history of alcoholism C)Charging a family with children a higher security deposit than is charged to adults D)Picturing only white people in a brochure as the happy residents in a housing subdivision
A Poor credit and insufficient income is never a protected class under fair housing.
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)Both I and II B)II only C)I only D)Neither I nor II
A Sexual harassment is an unsolicited overt request or demand for sexual acts when (1) submission to such conduct is made a term of the execution or continuation of the lease agreement or (2) submission to or rejection of such conduct by an individual is used to determine whether rights under the lease are accorded.
A real estate broker advertising property for sale to the public would need to consider all the following EXCEPT A)the Equal Credit Opportunity Act. B)the National Do Not Call Registry. C)the Truth in Lending Act. D)the junk fax and spam acts.
A The federal Equal Credit Opportunity Act (ECOA) prohibits discrimination based on race, color, religion, national origin, sex, marital status, or age in the granting of credit. Marital status and age are classes that are unique to ECOA. A real estate broker is not a lender, and so is not concerned with ECOA.
The Americans with Disabilities Act requires that A)the existing premises be remodeled regardless of the cost involved. B)reasonable accommodations be provided to people with disabilities. C)all real estate be free of barriers to people with disabilities. D)all employers adopt nondiscriminatory employment practices.
B For new construction of certain multifamily properties, a number of accessibility and usability requirements must be met under the Americans with Disabilities Act (ADA). Access is specified for public and common-use portions of the buildings, and adaptive and accessible design must be implemented for the interior of the dwelling units.
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)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. B)describe the dwelling, area, or building residents with words that relate to race, color, religion, age, familial status, or national origin ("Hispanic neighborhood") C)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"). D)advertisements describing the properties (two-bedroom, cozy, family room), services, and facilities (no bicycles allowed) or neighborhoods (quiet streets).
B HUD requires that every broker take affirmative marketing action in the choice of advertising media and in individual canvassing to ensure that all interested individuals have the same range of housing options. In North Carolina, brokers-in-charge are to be responsible for the conduct of advertising by or in the name of the firm.
After a broker takes a residential listing, the owner states that he does not want his home shown or sold to a foreign buyer. The broker should A)require that the owner sign a separate legal document stating the additional instruction as an amendment to the listing agreements. B)explain that the broker cannot knowingly comply with any instruction that violates federal law. C)abide by the client's directions since the agency's duty of obedience overrides fair housing laws. D)advertise the property exclusively in foreign-language newspapers.
B It is illegal to refuse to rent, sell, or negotiate for housing on the basis of the characteristics of a protected class or make housing unavailable or deny that housing is available. Brokers encounter clients and customers who may want to discriminate on purpose or who may not realize that their intentions are actually forms of discrimination. Brokers must be careful not to participate in the client's discrimination.
An apartment building advertises its apartments as "adults only." This advertising is A)legal if each unit has at least one person older than 55 living in it. B)illegal because it discriminates against tenants with children. C)legal per federal laws but may be illegal per state laws. D)legal if tenants with children are allowed to rent ground-floor units only.
B No advertisement of property for sale or rent, whether the advertising is in traditional print media or in social media, may include language indicating a preference or limitation for the protected class status of the prospective buyer or tenant; in this case, it would be familial status.
The Equal Credit Opportunity Act (ECOA) ensures that A)all creditors make loans to every consumer who applies for a loan. B)all consumers are given an equal chance to obtain credit. C)all consumers obtain credit. D)all creditors are given an equal chance to offer credit.
B The Equal Credit Opportunity Act (ECOA) ensures that all consumers are given an equal chance to obtain credit. This does not mean that all consumers who apply for credit receive it, because lenders use factors such as income, expenses, debt, and credit history to determine creditworthiness.
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)Standards of Practice. C)Ethical Standards. D)Codes of Practice.
B The National Association of REALTORS® has established procedures for professional standards committees and all three levels of the organization to administer compliance. Interpretations of the code are known as 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 completely mirrors the federal Fair Housing Act. B)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. C)A person can never be discriminated based on national origin. D)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.
B The North Carolina Fair Housing Act exempts the rental of a unit in a one-to-four-unit residential building if the owner or one of the owner's family members lives in one of the units. The federal law exempts such a unit only if the owner lives in one of the units.
Nasir has obtained his North Carolina real estate provisional broker's license. If Nasir wants to begin practicing real estate in North Carolina, he must do which of these? A)Join the national trade organization—National Association of REALTORS® B)Join the local trade organization C)Affiliate with a broker-in-charge D)Join the state trade organization—North Carolina Association of REALTORS®
C It is not a requirement in North Carolina that all real estate brokers (provisional or nonprovisional) join the trade organization—local, state or national organization. North Carolina does require an active and current North Carolina real estate license to conduct real estate‒related activities for others for a fee. A provisional broker is on inactive status until affiliated with a broker-in-charge.
The goal of the ADA is to A)make sure that people with mobility impairments can access restrooms. B)ensure that all places of employment, no matter the number of employees, are accessible. C)enable individuals with disabilities to become part of the economic and social mainstream of society. D)ensure that all commercial buildings have elevators.
C The ADA is important to brokers because it addresses the rights of individuals with disabilities in employment, commercial facilities, and places of public accommodation. The ADA's goal is to enable individuals with disabilities to become part of the economic and social mainstream of society.
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 based on their race. B)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. C)Sarah and her dad can refuse to rent to people who are male. D)Sarah and her dad can refuse to rent to people based on their color.
C The North Carolina Fair Housing Act exempts the rental of a unit in a one-to-four-unit residential building if the owner or one of the owner's family members lives in one of the units. The federal law exempts such a unit only if the owner lives in one of the units.
Ethics refers to a system of moral principles, rules, and standards of conduct. Which of these is TRUE regarding the moral principles of a profession? I They establish standards for integrity and competence in dealing with consumers of an industry's services. II They define a code of conduct for relations within the industry, among its professionals. A)II only B)I only C)Both I and II D)Neither I nor II
C The ethical system of a profession establishes conduct that goes beyond merely complying with the law. These moral principles address two sides of a profession: (1) They establish standards for integrity and competence in dealing with consumers of an industry's services. (2) They define a code of conduct for relations within the industry, among its professionals.
Which of the following is illegal? A)Refusing to lend money to a person who has a poor credit history but is a member of a protected class B)Refusing to allow families with children to live in a housing development created exclusively for people over 62 C)Refusing to hire an otherwise qualified person because he is wheelchair-bound D)Refusing to rent to a person who has been previously evicted
C Title I of the ADA requires that employers (including real estate brokers) make reasonable accommodations that enable an individual with a disability to perform essential job functions.
An owner wishes to list an expensive home but has requested that the home be sold to Caucasians only. Under the law, the agent should A)advertise the home solely in newspapers read by Caucasians B)advise the owner to sell it themselves. C)explain that it would be unlikely that non-Caucasians would be able to afford the house. D)inform the seller he cannot legally accept the listing under those conditions.
D A licensee is required to follow a client's instructions unless they violate the law. When a licensee receives an illegal instruction, they should refuse the instruction and, if necessary, terminate the relationship.
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)has broken no law and is following standard practices. C)is guilty of steering and profiteering. D)is guilty of blockbusting.
D Blockbusting (also known as panic peddling) 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. Any message, however subtle, that property should be sold or rented because the neighborhood is undergoing changes is considered blockbusting.
With regard to Fair Housing Act requirements, real estate brokers are required to do all of the following EXCEPT A)take affirmative marketing action in canvassing. B)take affirmative marketing action in advertising. C)prominently display the equal housing opportunity poster. D)show every listed property to each prospective buyer.
D Brokers must act in compliance with fair housing laws in their marketing and showing properties. A broker must show a property to a buyer if the buyer expresses an interest in that property or area. The broker is not required to show each buyer every listing.
A discrimination suit may be filed in federal court by A)the Federal Housing Administration. B)the state or county nondiscrimination officer. C)the Department of Housing and Urban Development. D)the aggrieved person believed to have experienced racial profiling.
D Discrimination suits are filed in federal courts by persons who believe they have been discriminated against because of their race or national origin. An aggrieved person belonging to any of the classes protected by fair housing laws may file a discrimination suit.
Under certain conditions, the federal fair housing laws may provide exemptions for all of the following EXCEPT A)religious organizations. B)private clubs. C)retirement communities. D)racially based organizations.
D Dwelling units owned by religious organizations may be restricted to people of the same religion if membership in the organization is not restricted on the basis of protected class. A private club that is not open to the public may restrict the rental or occupancy of lodgings that it owns to its members as long as the lodgings are not operated commercially. No exemption is allowed for any racially based organization.
It is illegal for a lending institution to refuse to make a residential real estate loan in a particular area based on A)the questionable economic situation of the applicant. B)the applicant not being of legal age. C)the deteriorated condition of the premises. D)the neighborhood in which the property is physically located.
D Federal and state fair housing laws prohibit lending institutions from "redlining" particular neighborhoods as zones unfavorable for mortgage loans. Redlining may be based on racial grounds rather than on the creditworthiness of loan applicants.
A lender refusing to lend in an area of high crime rates might be guilty of A)steering. B)theft. C)blockbusting. D)redlining.
D Lenders are not allowed to refuse to lend based on crime rates in an area.
Lian has an active and current North Carolina real estate broker's license. She owns several investment properties. Lian regularly makes suggestive comments and suggestive sounds to many of her tenants or prospective tenants. Her tenants feel that she is creating an intimidating, hostile, or offensive environment. Which of these is TRUE regarding Lian's behavior? A)Lian is exempt from the North Carolina Fair Housing Act because she is a licensed real estate broker. B)Lian has violated the North Carolina Fair Housing Act and can be sued but cannot also have her North Carolina real estate disciplined by the North Carolina Real Estate Commission. C)Lian is not violating the law. D)Lian has violated the North Carolina Fair Housing Act and her North Carolina real estate license can be disciplined by the North Carolina Real Estate Commission because she is violation of Commission rules.
D North Carolina Commission Rule A.1601: Conduct by a licensee which violates the provisions of the State Fair Housing Act constitutes improper conduct in violation of G.S. 93A-6(a)(10). North Carolina Real Estate Commission (NCREC) has the right to discipline a broker's license for violating NCREC rules.
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)Hugo is not engaging in sexual harassment B)Nonverbal harassment C)Verbal harassment D)Physical harassment
D Physical harassment is defined as inappropriate touching, pinching, brushing the body, fondling the body, coerced sexual intercourse, and sexual assault.
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)Association of REALTORS® (AOR) B)United States Association of REALTORS® (USAR) C)REALTORS® Association of the United States (RAUS) D)National Association of REALTORS® (NAR)
D The National Association of REALTORS® (NAR) is the largest trade organization in the country and adopted a Code of Ethics in 1913. REALTORS® are expected to subscribe to this strict code of conduct.
A university in North Carolina is allowed to do which of these, according to the North Carolina Fair Housing Act? A)Exempt the rental of rooms based on national origin. B)Exempt the rental of rooms based on race. C)Exempt the rental of rooms based on religion. D)Exempt the rental of rooms in a single-sex dormitory.
D The North Carolina Fair Housing Act exempts the rental of rooms in a single-sex dormitory. The federal law does not include this exemption.
The practice of renting only first-floor apartments to families with toddlers rather than allowing the families to rent apartments with balconies that are located within the upper floors of the building is considered A)an illegal practice that constitutes blockbusting. B)the responsibility of the property manager in order to minimize the liability of the owner. C)redlining. D)a discriminatory practice.
D Unless a property qualifies as housing for older persons, all properties must be made available to families with children under the same terms and conditions as to anyone else.
Under federal law, families with children may be refused rental or purchase in buildings where strict conditions are met and occupancy is reserved exclusively for those at least how many years old? A)60 B)55 C)65 D)62
D While the federal Fair Housing Act protects families with children, certain properties can be restricted to occupancy by elderly persons. Housing intended solely for occupancy by persons age 62 or older or housing occupied by at least one person 55 years of age or older per unit is exempt.