Real Estate Chapter 21
If a seller refuses to sell her home to a buyer on the basis of that buyer's race, what law is violated?
The answer is Fair Housing Act. The Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, disability, and familial status.
The federal Fair Housing Act prohibits discrimination in housing based on
The answer is all of these. The Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, disability, and familial status.
During a listing presentation, a real estate licensee said to the seller, who owned two residential properties, "I hear they're moving in, and you'd better put your house on the market before values drop!" Has the licensee violated any fair housing law?
The answer is yes, the licensee is guilty of blockbusting. Any message, however subtle or accidental, that property should be sold or rented because the neighborhood is "undergoing changes" is considered blockbusting. It is illegal to suggest that the presence of certain persons will cause property values to decline, crime or antisocial behavior to increase, or the quality of schools to suffer.
A licensee entered into a buyer agency agreement with Japanese man. The licensee showed him only properties where it was obvious that other Japanese people lived. Has the licensee violated any fair housing law?
The answer is yes, the licensee is guilty of steering. Steering is the channeling of homeseekers to particular neighborhoods. It also includes discouraging potential buyers or renters from considering certain areas. In either case, it is an illegal limitation of a purchaser's options.
The following ad appeared in the newspaper: "For sale: 4 BR brick home; Redwood School District; excellent Elm Street location; next door to St. John's Church and right on the bus line. Move-in condition; priced to sell." Which of these statements is TRUE?
The answer is the ad should not mention St. John's Church. Advertising any discriminatory preference or limitation in housing or making any inquiry or reference that is discriminatory in nature is prohibited by the Fair Housing Act.
Which of these is NOT permitted under the federal Fair Housing Act?
The answer is the owner of a 20-unit residential apartment building rents to white men only. The Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, disability, and familial status. The Fair Housing Act exempts owner-occupied buildings with no more than four units, single-family housing sold or rented without the use of a real state licensee, and housing operated by organizations and private clubs that limit occupancy to members.
As an office policy, a sponsoring broker requires that sponsored licensees show prospective buyers from racial or ethnic minority groups only properties that are in certain areas of town where few members of their groups currently live. The sponsoring broker prepares a map illustrating the appropriate neighborhoods for each racial or ethnic group. Through this policy, the sponsoring broker hopes to achieve racial balance in residential housing. Which of these statements is TRUE regarding the sponsoring broker's policy?
The answer is because the effect of the sponsoring broker's policy is discriminatory, it constitutes illegal steering regardless of his intentions. A licensee should never assume that prospective buyers expect to be directed to certain neighborhoods or properties. Steering anyone is illegal, and any licensee who engages in steering subjects himself (and the brokerage firm) to a civil lawsuit.
Encouraging people to sell or rent their homes by claiming that entry of a protected class of people into the neighborhood will have a negative impact on property values constitutes
The answer is blockbusting. Blockbusting (also called panic selling) is the act of encouraging people to sell or rent their homes by claiming that the entry of a protected class of people into the neighborhood will have some sort of negative impact on property values. Any message, however subtle or accidental, that property should be sold or rented because the neighborhood is "undergoing changes" is considered blockbusting.
After a broker takes a listing of a residence, the owners specify that they will not sell their home to any Asian family. The broker should
The answer is explain to the owner that the instruction violates federal law and that the broker cannot comply with it. A licensee is prohibited from taking any listing or participating in any transaction in which the property owner seeks to discriminate based on race, color, ancestry, religion, national origin, sex, handicap, or familial status. Breaking fair housing laws in Illinois is a criminal act and grounds for discipline.
A Lithuanian American real estate broker offers a special discount to Lithuanian American clients. This practice is
The answer is illegal. Under the Illinois Human Rights Act, it is a civil rights violation for any licensee to alter the terms, conditions, or privileges of a real estate transaction based on discriminatory actions.
A landlord rented an apartment to a person with a disability, and the tenant wants to make certain changes to the unit to accommodate her disability. Which of these does NOT constitute a reasonable modification?
The answer is install a dog run for service animals in the lobby. Persons with disabilities must be permitted to make reasonable modifications to the premises at their own expense. Such modifications might include lowering door handles or installing bath rails for a person in a wheelchair.
Which of these is TRUE pursuant to the Illinois Human Rights Act?
The answer is it is a civil rights violation to refuse to sell or rent because the prospective buyer or tenant has a service animal. It is a civil rights violation in Illinois to discriminate against any person who is blind, hearing impaired, or physically disabled in the terms, conditions, or privileges of sale or rental property. Similarly, it is a civil rights violation to refuse to sell or rent to a prospective buyer or tenant because he has a service animal.
Which of these is TRUE pursuant to the Fair Housing Act?
The answer is landlords must make reasonable accommodations to existing policies or practices to permit disabled persons to have equal enjoyment of the premises. It is unlawful to discriminate against prospective buyers or tenants on the basis of disability. Landlords must make reasonable accommodations to existing policies, practices, or services to permit persons with disabilities to have equal enjoyment of the premises. The landlord may not increase the customarily required security deposit for persons with disabilities.
A woman owns two multiunit apartment buildings: a two-flat on Oak Street and a 12-unit building on Main Street. She lives in an apartment in the Main Street property. Which of her properties, if any, is exempt from the Illinois Human Rights Act?
The answer is neither property. Certain individuals, property types, and transactions are exempt from the anti-discriminatory provisions of the Illinois Human Rights Act such as an owner-occupied apartment building of five units or less.
A lender's refusal to lend money to potential homeowners attempting to purchase properties located in predominantly African American neighborhoods is called
The answer is redlining. Redlining is the practice of refusing to make mortgage loans or issue insurance policies in specific areas for reasons other than the applicant's financial qualifications. Redlining is often based on racial grounds rather than on any real objection to an applicant's creditworthiness.
Which of these is legal?
The answer is requiring a person with a disability to establish an escrow account for the cost to restore a property after it has been modified. Where it is necessary in order to ensure with reasonable certainty that funds will be available to pay for the restorations at the end of the tenancy, the landlord may negotiate as part of such a restoration agreement a provision requiring that the tenant pay into an interest-bearing escrow account.
Under the Fair Housing Act, which action is legally permitted?
The answer is restricting occupancy in an apartment complex to senior citizens, if qualified and registered as housing for seniors. The Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, disability, and familial status. While the Fair Housing Act protects families with children, certain properties can be restricted to occupancy by elderly persons.
Under the Americans with Disabilities Act (ADA), which of these is TRUE?
The answer is the ADA requires that employers make reasonable accommodations that enable a person with a disability to perform essential job functions. Title I of the ADA requires that employers make reasonable accommodations that enable an individual with a disability to perform essential job functions. The provisions of ADA apply to any employer with 15 or more employees.
When a landlord rented an apartment in his six-unit building to a young couple, he didn't notice that the woman was pregnant. After the baby was born, the landlord canceled their lease, citing the lease's no-children clause. Which of these statements is TRUE?
The answer is the landlord is violating the Illinois Human Rights Act regarding the exclusion of children. The familial status reference in the act protects families with children. The term includes a woman who is pregnant. 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 anyone else.
A real estate licensee tells a single man with two small children that homes for sale in a condominium complex are available only to married couples with no children. Which statement is TRUE?
The answer is the man may file a complaint alleging discrimination on the basis of familial status. Familial status refers to the presence of one or more individuals who have not reached the age of 18 and who live with either a parent or a guardian. 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 anyone else.