CH - 15

29. Owner K lists his single-family residence with a brokerage. If he refused a bona fide offer from the following buyers because of the characteristics specified here, in which case would he be in violation of the Fair Housing Act? A. A buyer who will have a disabled relative living with her B. Buyers who are an unmarried couple C. A buyer who is divorced D. A buyer who is over 55 years of age

A. A buyer who will have a disabled relative living with her Explanation: Disability is a protected class under the Fair Housing Act, but marital status and age are not. (Familial status refers to living with a child; it does not refer to being unmarried or divorced.)

27. A homeowner wants to sell his home, but during the listing presentation he insists that the agent show the property to Caucasians only. Under these circumstances, what should the agent do? A. Refuse to take the listing B. Follow the owner's instructions C. Explain that she can steer minority prospects to other neighborhoods D. Charge the seller a higher commission because the home will be harder to sell

A. Refuse to take the listing Explanation: What the seller is asking is a violation of the federal Fair Housing Act. The agent must refuse the listing unless she is allowed to show the home to anyone interested in seeing it.

According to the Americans With Disabilities Act: A. a real estate office is considered to be a public accommodation B. a disability is defined as any permanent physical impairment C. architectural barriers that prevent access to goods and services must be removed regardless of cost D. all multi-story buildings must be equipped with elevators

A. a real estate office is considered to be a public accomodation Explanation: Under the ADA, a nonresidential place that is owned, operated, or leased by a private entity, and open to the public, and whose operation affects commerce (such as a real estate office) is considered a public accommodation.

The Home Mortgage Disclosure Act: A. helps to enforce the federal Fair Housing Act's prohibition against redlining B. helps to enforce the federal Fair Housing Act's prohibition against steering C. requires lenders to disclose the annual percentage rate for their residential mortgage loans D. prohibits kickbacks and referral fees in residential loan transactions

A. helps to enforce the federal Fair Housing Act's prohibition against redlining Explanation: The Home Mortgage Disclosure Act facilitates the enforcement of federal laws against redlining.

The federal Fair Housing Act prohibits blockbusting, a practice also known as: A. panic selling B. no steering C. redlining D. slandering

A. panic selling Explanation: Blockbusting, where someone tries to induce people to sell properties by predicting a change in the racial composition of a neighborhood, is also known as panic selling.

The Washington state agency that is responsible for enforcing anti discrimination laws is: A. the Human Rights Commission B. no the Civil Rights Commission C. the Civil Liberties Commission D. the Fair Practices Board

A. the Human Rights Commission Explanation: In Washington, antidiscrimination laws are enforced by the Human Rights Commission.

24. Under the federal Fair Housing Act, it is not illegal to refuse to sell a condominium unit to a family with children if: A. the condominium qualifies as housing for older persons, with 80% of the units occupied by at least one person over 55 B. the condominium is advertised as an Adults Only complex C. the family includes one or more children under ten years old D. All of the above

A. the condominium qualifies as housing for older persons, with 80% of the units occupied by at least one person over 55 Explanation: Children can be excluded from properties that were developed under a government program to assist the elderly, that are intended for and solely occupied by persons 62 years old or older, or that are intended for older persons and designed to meet their physical and social needs, if at least 80% of the units are occupied by at least one person who is 55 or older.

A landlord may legally reject a tenant's application for a lease if: A. the tenant's family is too large for the rental unit B. the tenant's family has small children C. the tenant is physically disabled D. the tenant is mentally impaired

A. the tenant's family is too large for the rental unit Explanation: The tenant can be denied the lease if his family is too large for the rental unit. However, refusing to lease based on a tenant's familial status (presence of children) or handicap is a violation of the Fair Housing Act.

It would violate fair housing laws to specifically advertise housing to: A. people living in the same neighborhood as the property for sale B. one particular minority group C. members of the military D. financially qualified buyers only

B. One particular minority group Explanation: It is a discriminatory act to use advertising that indicates a preference or intent to discriminate.

Unlike the federal Fair Housing Act, the Washington Law Against Discrimination prohibits discrimination based on: A. sex B. sexual orientation C. religion D. national origin

B. Sexual Orientation Explanation: The state law prohibits discrimination based on sexual orientation, but the federal law does not. (Both the federal law and the state law prohibit discrimination based on sex, religion, or national origin.)

15. An agent shows his customer, who is Asian-American, homes only in neighborhoods that are predominantly Asian-American. This is called: A. channeling B. steering c. blockbusting D. redlining

B. Steering Explanation: Steering is the practice of guiding prospective buyers or renters toward or away from certain neighborhoods based on national origin, race, or any of the other protected categories.

The federal Fair Housing Act allows discrimination on the basis of familial status provided that: A. at least 50% of the units in the project are available to families with children B. the project was developed under a government program to assist the elderly C. at least 90% of the units in the project are occupied by at least one person over the age of 62 D. at least 50% of the units in the project are occupied by at least one person over the age of 55

B. The project was developed under a government program to assist the elderly Explanation: Children may be excluded from properties that were developed under a federal program to assist the elderly.

23. The prohibition against discrimination on the basis of disability in the federal Fair Housing Act would not apply to discrimination against: A. a chronic alcoholic B. a heroin addict C. a person diagnosed as having AIDS D. a person with a mental disability

B. a heroin addict Explanation: The federal Fair Housing Act does not protect those who are a direct threat to the health or safety of others, or those who are currently using controlled substances.

local bank refuses to make residential loans in a particular section of town because of the ethnic background of its residents. This is a discriminatory practice called: A. blockbusting B. redlining C. steering D. collusion

B. redlining Explanation: This is redlining, which is illegal.

28. Redlining refers to: A. channeling prospective buyers toward or away from particular areas based on their race or ancestry B. refusing to make loans in a particular neighborhood because of its racial or ethnic composition C. inducing owners to list or sell by predicting a change in the racial or ethnic composition of the neighborhood D. None of the above

B. refusing to make loans in a particular neighborhood because of its racial or ethnic composition Explanation: Redlining is a refusal to make a loan because of the racial or ethnic composition of the neighborhood where the property is located.

10. Under Title VIII of the Civil Rights Act of 1968, certain transactions are exempt. Which of the following is an allowable exemption? A. A church-owned apartment complex where language in the lease restricts tenancy to members of a specific national origin B. Members of a certain ethnic group are denied lodging in facilities operated by a private club for commercial purposes C. An unlisted home that is for sale by owner, where the only advertising is a sign in front of the property that reads simply For Sale D. An absentee owner who rents units in a four-plex without the help of a real estate brokerage

C. An unlisted home that is for sale by owner, where the only advertising is a sign in front of the property that reads simply for sale Explanation: The Fair Housing Act (Title VIII of the Civil Rights Act of 1968) does not apply to the sale or rental of a single-family home by its owner, provided that the owner doesn't own more than three such homes, no real estate agent is used, and no discriminatory advertising is used.

An advertisement for a condominium project that states that units in the project are available for sale to "adults only" may be in violation of the: A. Civil Rights Act of 1866 B. Civil Rights Act of 1964 C. Civil Rights Act of 1968 D. All of the above

C. Civil Rights Act of 1968 Explanation: The Civil Rights Act of 1968 (which includes the federal Fair Housing Act) prohibits discrimination based on familial status, including "adults only" complexes that aren't exempt as "housing for older persons."

Which of the following transactions could be exempt from the federal Fair Housing Act? A. Rental of a unit in a six-unit apartment building, if the owner does not reside on the property B. Rental of a unit in a ten-unit apartment building, if the owner occupies one of the units C. Sale of a single-family home by the owner, with no real estate agent involved D. Sale of a single-family home listed with a real estate brokerage

C. Sale of a single-family home by the owner, with no real estate agent involved Explanation: The federal Fair Housing Act does not apply to the sale or rental of a single-family home by its owner, if the owner does not own more than three such homes, uses no real estate agent, and uses no discriminatory advertising.

30. All of the following activities could be considered unlawful price fixing in violation of antitrust laws, except: A. a discussion between two competing brokerages about their respective commission rates B. publication of a report on commission rates charged by members of a multiple listing service C. a discussion between a designated broker and her brokers about the brokerage's commission rates D. an announcement by a brokerage that it intends to raise commission rates in the coming year

C. a discussion between a designated broker and her brokers about the brokerage's commission rates Explanation: Agents within a firm may discuss the brokerage's commission rates without violating Sherman Act prohibitions against price fixing.

In 1988, the federal Fair Housing Act was amended to prohibit discrimination based on: A. substance abuse or age B. marital status or national Origin C. disability or familial status D. disability or occupation

C. disability or familial status Explanation: The 1988 amendments to the federal Fair Housing Act added prohibitions against discrimination based on familial status or disability.

Discriminatory conduct that is exempt from the federal Fair Housing Act: A. is automatically exempt from any state regulations B. can never result in sanctions for illegal behavior C. may be still be illegal under the provisions of some other federal or state law D. is assumed to be legal unless a real estate agent is involved

C. may be still be illegal under the provisions of some other federal or state law Explanation: Discriminatory conduct exempt from the federal Fair Housing Act may still be illegal under other laws. For instance, the Washington Law Against Discrimination has fewer exemptions than the federal law.

The federal Fair Housing Act prohibits discrimination based on any of the following factors except: A. national origin B. disability C. receipt of public assistance income D. familial status

C. receipt of public assistance income Explanation: Discrimination because of receipt of public assistance income is not prohibited by the federal Fair Housing Act. It is, however, prohibited by the Equal Credit Opportunity Act.

Which of the following is considered a disability for the purposes of the federal Fair Housing Act? A. AIDS B. Mental impairment C. Blindness D. All of the above

D. All of the above Explanation: Under the Fair Housing Act, a disability is defined as a physical or mental impairment that substantially limits one or more major life activities. All of the above would qualify under that definition.

25. Broker Bill is the subject of a discrimination complaint based on the federal Fair Housing Act. This claim may be resolved in: A. an administrative hearing B. federal court C. state court D. Any of the above

D. Any of the above Explanation: Claims involving discrimination in violation of the federal Fair Housing Act may be resolved in an administrative hearing, in state court, or in federal court.

Mary is renting one of the units in a duplex she owns. She will be exempt from the federal Fair Housing Act unless: A. she does not occupy one of the units in the duplex B. she hires a real estate agent to help rent the unit C. she places a classified ad stating that the unit is available to Christians only D. Any of the above would prevent Mary from being exempt from the Fair Housing Act

D. Any of the above would prevent May from being exempt from the Fair Housing Act Explanation: Under the "Mrs. Murphy exemption," the federal Fair Housing Act does not apply to rental of a unit or room in a dwelling of up to four units, so long as the owner occupies one of the units, a real estate broker is not employed, and no discriminatory advertising is used.

A real estate agent tells a potential home seller that she has noticed a shift in the racial makeup of the neighborhood that, in her experience, usually results in lower property values. The agent is engaged in: A. redlining B. steering C. panic prediction D. blockbusting

D. blockbusting Explanation: Blockbusting (also called panic selling) is the attempt to induce a homeowner to sell his property because of a predicted change in the racial or ethnic composition of the neighborhood.

21. S, a disabled person, leases an apartment for two years. S concludes that certain structural modifications inside the apartment will be necessary to accommodate her physical limitations. Under the federal Fair Housing Act, S: A. can be required to pay a larger security deposit to protect the landlord from damage B. cannot make any modifications, because the act requires that S be treated the same as all other tenants C. must obtain the written permission of a majority of the other tenants before the modifications are started D. can make modifications at her own expense if she restores the unit to its original state when the lease ends

D. can make modifications at her own expense if she restores the unit to its original state when the lease ends Explanation: The landlord can require the tenant to restore the apartment to its original condition.

17. An owner of a single-family home who sells the home without the help of a real estate agent is exempt from the requirements of the federal Fair Housing Act: A. in all cases B. only if the owner does not own more than three such homes C. only with respect to discrimination on the basis of familial status or handicap D. only if the owner does not own more than three such homes and the sale does not involve any discriminatory advertising

D. only if the owner does not own more than three such home and the sale does not involve any discriminatory advertising Explanation: A homeowner may be exempt from federal Fair Housing Act requirements if he does not own more than three such homes, does not use a real estate agent in the transaction, and does not use discriminatory advertising.

The Washington Law Against Discrimination: A. is essentially a fair housing law B. does not apply to places of public amusement such as movie theaters and sports arenas C. does not apply to discriminatory acts unless a real estate agent is involved D. prohibits racially restrictive covenants in a warranty deed

D. prohibits racially restrictive covenants in a warranty deed Explanation: Among the prohibited activities under the Washington Law Against Discrimination is the insertion of a condition, restriction, or prohibition based on a protected class in a written instrument relating to real property.

20. One important distinction between the Civil Rights Act of 1866 and the federal Fair Housing Act is that: A. the 1866 Civil Rights Act does not apply to residential transactions B. the 1866 Civil Rights Act does not prohibit discrimination based on race c. the Fair Housing Act does not prohibit discrimination based on religion D. the Fair Housing Act does not apply to nonresidential transactions

D. the fair housing act does not apply to nonresidential transactions Explanation: The Fair Housing Act does not apply to nonresidential transactions, while the Civil Rights Act of 1866 applies to all leasing and selling of personal and real property.