Unit 18 ~ Modern ~ Fair Housing and Ethics

A real estate professional said to a homeowner, "I hear they're moving in. There goes the neighborhood! Better put your house on the market before values drop! This is an example of what illegal practice?

Blockbusting. Its an attempt to get listings by frightening owners into selling by encouraging the belief that a member of a protected class is moving into the neighborhood. To do this for financial gain is a violation of the federal Fair Housing Act.

Which agency, upon receiving a complaint regarding a Fair Housing Act violation, investigates?

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.

Why is the Civil Rights Act of 1866 unique?

It provides no exceptions that would permit racial discrimination

The federal Fair Housing Act does NOT prohibit

Marital status is not one of the seven protected classes under the federal Fair Housing Act.

A lender's refusal to lend money to potential homeowners attempting to purchase properties located in a particular ethnic neighborhoods is known as

Redlining. Failure to lend or to insure in areas largely populated by a protected group is a violation of the federal Fair Housing Act of 1968. It is redlining.

The act of directing homeseekers toward or away from particular areas, either to maintain or to change the character of the neighborhood, 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.

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?

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.

The fine for a first violation of the federal Fair Housing Act could be as much as

The answer is $19,987

Complaints relating to the Civil Rights Act of 1866

The answer is must be taken directly to federal courts. Complaints under the Civil Rights Act of 1866 are heard in federal courts.

Which statement describes the Supreme Court's decision in the case of Jones v. Alfred H. Mayer Company?

The answer is racial discrimination is prohibited by any party in the slae 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 the law.

Under the Fair Housing Act, which action is legally permitted?

The answer is refusing to make a mortgage loan to a member of protected class because of a poor credit history. Bad credit can cause anyone to be rejected, even those who are members of protected classes.

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?

The answer is the ad should not mention St. John's Church. Reference to a nearby church implies religious preference. This violate HUD advertising regulations designed to enforce the Federal Fair Housing Act.

A suit may be filed in federal court by a person aggrieved by an alleged act of discrimination under the Fair Housing Act.

The answer is within 2 years of the discriminatory act. A civil suite alleging an act of discrimination under the Fair Housing Act may be filed in federal court within two years of the discriminatory act. A complaint may be filed with HUD within one year of the alleged discriminatory.

It is illegal for a lending institution to refuse to make a residential real estate loan in a particular area based on

The ethnicity of the residents of the area. Redlining refers to literally drawing a line around a particular area and refusing to make loans in the area because of the ethnicity of the residents, rather than looking at the economic qualifications of the applicant.

A single man with 2 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?

The man may file a complaint alleging discrimination on the basis of familial status. The sales person and, by implication, the broker and the property owners/principals have violated the prohibition against familia-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

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.

After a real estate professional takes a sale listing of a residence, the owners specify that they will not sell the home to any Chinese family. The real estate professional should do which of the following?

explain to the owners that the instruction violates federal law and that the real estate professional cannot comply with it. The fiduciary duty of obedience requires that the broker obey all LAWFUL instructions. This is not a lawful instruction as it requires a violation of the Fair Housing Act. If the owners are adamant, to avoid breaking the law, the real estate professional must terminate the representation.

The provision of the federal Fair Housing Act apply

in all states. The federal Fair Housing Act applies to all states, and many states and municipalities have their own fair housing laws.

Housing that qualifies for exemption from familial status provisions

includes that 80% of the units be occupied by persons aged 55 or older. The Fair Housing Act allows for 2 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.

Which of the following is legal?

requiring a person with a disability to establish an escrow account for the costs to restore a property after it has been modified. A landlord may negotiate, as part of a restoration agreement, a provision requiring the tenant to pay an amount not exceeding the cost of restoration into an interest bearing escrow account. The interest in the account accrues to the benefit of the tenant.