Chapter 15: Anti-discrimination Laws and Other Marketing Regulations (Colibri Real Estate)
How long does an aggrieved person have to file a complaint concerning an alleged act of discrimination with the Department of Housing and Urban Development? 6 months 12 months 18 months 24 months
12 months A complaint must be filed with the Department of Housing and Urban Development within one year of the discriminatory conduct.
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 buyer who will have a disabled relative living with her Buyers who are an unmarried couple A buyer who is divorced A buyer who is over 55 years of age
A buyer who will have a disabled relative living with her 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.)
Which of the following actions is exempt from the federal Fair Housing Act's prohibition on discrimination? A private club operating a senior citizens' home for profit A real estate broker who owns four homes and is selling her own home, provided the property is not listed with a brokerage A religious organization that gives preference to its members in leasing church-owned property, provided there is no discrimination applied in church membership A landlord of a triplex who refuses to rent to a potential tenant because of her race, where the landlord does not live in one of the units
A religious organization that gives preference to its members in leasing church-owned property, provided there is no discrimination applied in church membership In dealing with its own property in noncommercial transactions, a religious organization may limit occupancy to its members, provided that membership isn't restricted on the basis of race, color, or national origin. The exemption for someone selling her own home doesn't apply if she owns more than three homes.
Which of the following describes a violation of the Americans with Disabilities Act? A recently built one-story apartment complex with doorways too narrow for wheelchair users A rental house that does not have a wheelchair ramp at its entrance A shopping center without wheelchair-accessible restrooms An older 40-unit apartment building without elevators
A shopping center without wheelchair-accessible restrooms The Americans with Disabilities Act requires public accommodations to be accessible to the disabled. This would include a shopping center, as it is open to the public and affects commerce. The ADA does not apply to residential properties (although the Fair Housing Act does impose some restrictions on new apartment construction).
Which of the following is considered a disability for the purposes of the federal Fair Housing Act? AIDS Mental impairment Blindness All of the above
All of the above 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.
The federal law that describes a public accommodation as any private entity with facilities open to the public, as long as the operation of the facility affects commerce.
Americans with Disabilities Act
An investor owns a five-story office building. She ramped the curb and the steps leading to the office building, altered the height of a pay phone in the lobby, widened restroom doors throughout the building, and added grab bars in certain restroom stalls. The investor did this in an effort to comply with the: 1988 Disability Amendment to the Fair Housing Act Americans with Disabilities Act Civil Rights Act of 1866 Civil Rights Act of 1964
Americans with Disabilities Act The Americans with Disabilities Act is a federal law that was passed to help ensure that disabled persons have equal access to public facilities. The ADA requires any business or other facility open to the public to be accessible to the disabled.
Under Title VIII of the Civil Rights Act of 1968, certain transactions are exempt. Which one of the situations below would be exempted and not a violation of the act? A church-owned apartment complex where language in the lease restricts tenancy to members of a specific national origin Members of a certain ethnic group are denied lodging in facilities operated by a private club for commercial purposes 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" and the owner owns only one other home An absentee owner who rents units in a four-plex without the help of a real estate agent
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" and the owner owns only one other home The federal 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.
Under Title VIII of the Civil Rights Act of 1968, certain transactions are exempt. Which of the following is an allowable exemption? A church-owned apartment complex where language in the lease restricts tenancy to members of a specific national origin Members of a certain ethnic group are denied lodging in facilities operated by a private club for commercial purposes 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 An absentee owner who rents units in a four-plex without the help of a real estate brokerage
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 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.
Broker Bill is the subject of a discrimination complaint based on the federal Fair Housing Act. This claim may be resolved in: an administrative hearing federal court state court Any of the above
Any of the above 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: she does not occupy one of the units in the duplex she hires a real estate agent to help rent the unit she places a classified ad stating that the unit is available to Christians only Any of the above would prevent Mary from being exempt from the Fair Housing Act
Any of the above would prevent Mary from being exempt from the Fair Housing Act 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.
Which law prohibits discrimination in real estate transactions based on race, with no exceptions? Civil Rights Act of 1866 Civil Rights Act of 1964 Civil Rights Act of 1968 Fair Housing Act
Civil Rights Act of 1866 The Civil Rights Act of 1866 prevents discrimination based on race or color in any real estate transaction, without exception. The 1964 Act is limited to programs where the federal government offers financial assistance, while the Fair Housing Act (a part of the 1968 Act) is limited to residential transactions and has several exemptions.
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: Civil Rights Act of 1866 Civil Rights Act of 1964 Civil Rights Act of 1968 All of the above
Civil Rights Act of 1968 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 is exempt from the federal Fair Housing Act? Commercial or industrial property An eight-unit multi-family dwelling A triplex listed for sale with a real estate broker A vacant lot intended for residential construction
Commercial or industrial property The federal Fair Housing Act applies to residential properties, not commercial or industrial properties.
A person who uses a wheelchair moved into an apartment. At his own expense, the tenant lowered the light switches, removed carpeting from a hallway, installed handrails, and widened doorways. When the lease ends, the tenant will least likely have to restore which of the following to its original condition? Doorways Handrails Carpeting Light switches
Doorways A landlord may require disabled tenants who make modifications to a property to restore the premises at the end of the tenancy. But it seems unlikely that a landlord would have a tenant undo structural changes, such as changes to the width of doorways.
A developer lists 20 different properties in a subdivision, with four different licensees. Each licensee gets her own model unit to work from. Which of the following is true? Each licensee must mention the other licensees' offerings to all visitors Each model must display the Fair Housing logo Each model must display the licensee's license Each visitor must receive a copy of the Condominium Buyer's Handbook
Each model must display the Fair Housing logo HUD regulations require the display of a Fair Housing poster with the Equal Housing Opportunity logo in any place of business where the business involves the selling or renting of dwellings.
Which of the following pieces of information may an apartment property manager gather about applicants? Age Employment history National origin Social affiliations
Employment history A property manager gathers information about rental applicants' employment history to gauge their ability to pay rent. National origin is a protected class under the Fair Housing Act, and asking about it violates the act. Age alone isn't a protected class and many rental applications ask for birth date, but we think if a similar question is encountered on the state exam, "Employment history" would be the better answer. Social affiliation isn't protected by fair housing law directly, but it can implicate familial status and religion, which are protected classes. Age alone isn't a protected class and many rental applications ask for birth date, but we think if a similar question is encountered on the state exam, the answer Employment history is more logical since it's more central to what landlords need to know. Social affiliation isn't protected by fair housing law directly, but it can implicate familial status and religion, which are protected classes.
A seller tells a real estate agent that she has lived in the neighborhood for a long time and would like to be selective about who buys her house; she would like the agent to tell her the race and nationality of all prospective buyers. How should the agent respond? Agree to it, but avoid using any discriminatory advertising Agree to it, as the agent owes the seller the duty of loyalty End her agency with the seller, as the agent's duty is to find the most lucrative offer for the seller regardless of race End her agency with the seller, as it would be a violation of the federal Fair Housing Act
End her agency with the seller, as it would be a violation of the federal Fair Housing Act An agent faced with a client who wants her to violate the Fair Housing Act should refuse to follow the instructions and explain that following the instructions would be a violation of federal law.
Which of the following is true concerning federal fair housing laws? Enforcement may be brought about by filing a complaint with the Dept. of Housing and Urban Development Parts of these laws were overturned by the Supreme Court in the case of Jones v. Alfred H. Mayer Co. They only apply to racial discrimination They preempt state-level antidiscrimination laws
Enforcement may be brought about by filing a complaint with the Dept. of Housing and Urban Development The Fair Housing Act is enforced through the Department of Housing and Urban Development's Office of Fair Housing and Equal Opportunity. Jones v. Mayer upheld the application of the Civil Rights Act of 1866 in sale or rental of real property. State laws are not preempted by federal antidiscrimination laws; in some cases, they may be more strict than federal law.
This law prohibits lenders from discriminating based on race, color, religion, national origin, sex, marital status, age, or because the applicant's income is from public assistance.
Equal Credit Opportunity Act
A federal law that pertains to all types of loan transactions, including residential real estate loans, and prohibits discrimination based on race, color, religion, national origin, sex, or marital status, or because the applicant receives public assistance, is the: Home Mortgage Disclosure Act Fair Housing Act (as amended in 1988) Equal Credit Opportunity Act Americans with Disabilities Act
Equal Credit Opportunity Act The Equal Credit Opportunity Act promotes fair lending practices for all types of loans, including real estate loans. The federal Fair Housing Act is limited to the sale, leasing, or financing of residential real estate.
A HUD administrative law judge may award compensatory and punitive damages to a victim of discriminatory conduct. True False
False An administrative law judge may award compensatory damages, but not punitive damages.
Purchasing a home in the area and then selling it on contract to a minority buyer, in order to frighten local residents into selling, is an example of steering. True False
False It's an example of blockbusting.
A real estate agent tells a client, "You probably wouldn't be interested in looking at that house; it's in a changing neighborhood." This is an example of blockbusting. True False
False It's an example of steering.
If an apartment has an established "no pets" policy for tenants, the manager is not required to make an exception for a hearing impaired person who has a service dog living with him. True False
False Landlords must make reasonable exceptions to their rules to accommodate handicapped tenants. For example, even if they do not allow pets, they cannot refuse to rent to someone with a guide dog or a hearing dog.
Protection against discrimination on the basis of familial status is extended to those who have a child under 18 living with them, but not to pregnant women. True False
False The familial status protection covers those who have children under 18 living with them, pregnant women, and those in the process of obtaining custody of a child.
Which of the following is the best example of nondiscriminatory language, according to HUD's guidelines for the Fair Housing Act? Female seeking female roommate Nice neighborhood for families with kids No children please Walking distance to great Catholic school
Female seeking female roommate The Fair Housing Act imposes a general prohibition against advertisements that indicate either a restriction (as in answer C) or a preference (as in B and D) related to a protected class. However, the act has an exemption for owner-occupied rentals, and that would allow a female homeowner to advertise for a female roommate without violating the law. Renters placing an ad for a co-renter are also exempt.
A real estate agent would like to contact a buyer that he previously represented, to ask if that person would be interested in listing her home or if she has any referrals. Under what circumstances could the agent contact that person without having to consult the Do Not Call Registry? He represented the buyer within the previous 6 months He represented the buyer within the previous 18 months There is no limit; he can contact the buyer regardless He may never contact the buyer
He represented the buyer within the previous 18 months If an agent has an established business relationship with a previous client, he may call that person within the 18 months following that person's last transaction, even if that person has placed her name on the Do Not Call Registry. (If that person then asks the agent to stop calling, though, the agent must honor that request.)
A law that requires certain institutional lenders to make annual reports on residential mortgage loans that were originated or purchased during the fiscal year.
Home Mortgage Disclosure Act
Leo owns the six-unit apartment building in which he lives. When a tenant moves out, he advertises the unit this way: "For Rent: Vacant apartment on very busy street. No children or pets." According to the federal Fair Housing Act, as amended in 1988, is the ad legal? Yes, because individual owners are exempt from fair housing laws Yes, provided a real estate agent isn't used No, because landlords cannot declare residential units to be unavailable to families with children unless the property meets the specific legal requirements of housing for older persons No, because the fair housing laws only apply to properties with more than six units
No, because landlords cannot declare residential units to be unavailable to families with children unless the property meets the specific legal requirements of housing for older persons Only properties that meet the legal requirements of housing for older persons can prohibit children.
All of the following are true about the ADA, EXCEPT: Any employer with 15 or more employees must make reasonable accommodations for disabled employees Public accommodations include stores, hotels, real estate offices, private clubs, religious organizations, and personal residences Real estate offices are covered by the ADA The purpose of the act is to ensure equal access to both jobs and public accommodations by the disabled
Public accommodations include stores, hotels, real estate offices, private clubs, religious organizations, and personal residences Places of public accommodation include a wide range of entities, such as restaurants, hotels, theaters, doctors' offices, pharmacies, retail stores, museums, libraries, parks, private schools, and day care centers. Private clubs and religious organizations are exempt from the ADA, as are personal residences.
Marian needs to rent out her basement to make ends meet. She doesn't place any ads for a tenant or ask for any help from a real estate agent--she merely asks some of her friends if they know of any potential tenants. She carefully screens all the prospects, and decides to rent only to a religious, non-smoking, white female. On which basis is it illegal for her to discriminate? Race Gender Religion Smoking preference
Race Marian falls under the "Mrs. Murphy" exemption to the federal Fair Housing Act, but there is no such exemption from the Civil Rights Act of 1866, which prohibits discrimination based on race.
Tyler asks a real estate agent to list his house for sale. Tyler is moving to another house within the same neighborhood, and tells his agent that in order to preserve the character of the neighborhood, he does not want the property shown to non-white buyers. Which of the following should the agent do? Comply with Tyler's wishes because of the duty of loyalty to the principal Enter into a listing agreement that contains Tyler's terms, but still show the property to any interested buyer Refuse to accept the listing because it violates federal anti-discrimination laws Tell Tyler that the listing cannot contain such instructions, but Tyler may still refuse to sell to buyers based on their race
Refuse to accept the listing because it violates federal antidiscrimination laws The real estate agent should decline the listing, as what Tyler has proposed will violate antidiscrimination laws.
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? Refuse to take the listing Follow the owner's instructions Explain that she can steer minority prospects to other neighborhoods Charge the seller a higher commission because the home will be harder to sell
Refuse to take the listing 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.
Which of the following rental transactions would be covered by (not exempt from) the Fair Housing Act even if no real estate agent were involved? Owner-occupant rents a unit in a four-unit dwelling, using a nondiscriminatory ad Owner-occupant of a duplex rents to a neighbor's son without advertising the unit Rental of a unit in a triplex, using no discriminatory advertising Owner rents out one room in her residence, without using any advertising
Rental of a unit in a triplex, using no discriminatory advertising This question is asking what situation is not exempt from the Fair Housing Act. The situation described in answer C is not exempt: the act applies. A residential rental transaction can be exempt from the Fair Housing Act only if the property is a single-family home and the owner has no more than three such homes, or if the property has no more than four units and the owner is residing on the property. Option C does not indicate that the owner is occupying one of the units in the triplex, so the Fair Housing Act would apply to the transaction.
Which of the following transactions could be exempt from the federal Fair Housing Act? Rental of a unit in a six-unit apartment building, if the owner does not reside on the property Rental of a unit in a ten-unit apartment building, if the owner occupies one of the units Sale of a single-family home by the owner, with no real estate agent involved Sale of a single-family home listed with a real estate brokerage
Sale of a single-family home by the owner, with no real estate agent involved 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.
A prospective tenant asks a licensee to show him only properties that do not allow children. How should the licensee respond? Say that only bona fide retirement communities may exclude children Say that the law requires that all available properties must be shown Say that to do so would be steering, and therefore illegal Show properties that are billed as "adults only"
Say that only bona fide retirement communities may exclude children The Fair Housing Act forbids "adults only" apartment complexes. There is, however, an exemption for properties that qualify as "housing for older persons," such as those intended for and solely occupied by persons 62 or older.
The federal antitrust law that can lead to both criminal and civil penalties is called the _______________.
Sherman Act
Price fixing (including setting commission rates in a community) is prohibited by the: state Usury Act federal Regulation Z Sherman Antitrust Act and state antitrust laws federal Real Estate Settlement Procedures Act
Sherman Antitrust Act and state antitrust laws The Sherman Antitrust Act and state antitrust laws prohibit price fixing, group boycotts, market allocation, and tie-in arrangements.
Which of the following actions by a real estate agent would be illegal? Asking a disabled client if there are special features he might need in a house Showing only houses located in mostly Latino neighborhoods to a Latino family Telling a client, during prequalification, that her bad credit score makes an affordable loan unlikely Truthfully answering questions from a buyer about the demographics of a neighborhood
Showing only houses located in mostly Latino neighborhoods to a Latino family If a real estate agent channels prospective buyers toward particular neighborhoods because of their national origin, that is steering, a violation of the federal Fair Housing Act.
Which of the following laws provides for the full and equal access to goods and services in places of public accommodation? The Home Mortgage Disclosure Act The Civil Rights Act of 1866 The Equal Credit Opportunity Act The Americans with Disabilities Act
The Americans with Disabilities Act Ensuring equal access to goods and services in places of public accommodation is the purpose of the Americans with Disabilities Act.
Which of the following situations would be exempt under the Fair Housing Act? A religious organization refuses to allow people of a particular national origin to live in their low-income housing project An elderly homeowner who rents out a room in her house asks that no people of a particular national origin apply, in her classified ad The owner of a fourplex lives in one unit and refuses to rent the other three units to students because of their national origin The owner of a house refuses to sell the property to buyers because of their national origin, after his real estate agent confirms that is allowed
The owner of a fourplex lives in one unit and refuses to rent the other three units to students because of their national origin The Fair Housing Act allows an exemption for the rental of a unit in a dwelling of up to four units, so long as the owner lives in one of the units, employs no real estate agent, and uses no discriminatory advertising.
One exemption from the prohibition against discrimination on the basis of familial status is a property intended for and solely occupied by persons 62 years old or older. True False
True Another exemption is properties developed under a government program to assist the elderly.
The federal Fair Housing Act is enforced by the Department of Housing and Urban Development. True False
True HUD does this through its Office of Fair Housing and Equal Opportunity.
The refusal, for discriminatory reasons, to make loans on properties located in a particular neighborhood is called redlining. True False
True It is legal to reject a loan application based on the creditworthiness of the applicant or on the value of the property, but basing a lending decision on the racial or ethnic makeup of the neighborhood is illegal redlining.
The Fair Housing Act does not apply to the rental of a dwelling with up to four units, provided that the owner occupies one of the units, uses no discriminatory advertising, and does not employ a broker. True False
True It's called the Mrs. Murphy exemption.
The federal Fair Housing Act does not prohibit discrimination in commercial or industrial transactions. True False
True The act concerns itself with discrimination in residential transactions.
A Washington law that is specifically directed at preventing redlining.
Washington Fairness in Lending Act
To further the purposes of this law, the Human Rights Commission was created and given the mission of eliminating and preventing discrimination in this state.
Washington Law Against Discrimination
According to this law, if a real estate agent violates any fair housing or antidiscrimination laws or regulations, she may be subject to disciplinary action.q
Washington Real Estate License Law
All of the following activities could be considered unlawful price fixing in violation of antitrust laws, except: a discussion between two competing brokerages about their respective commission rates publication of a report on commission rates charged by members of a multiple listing service a discussion between a designated broker and her brokers about the brokerage's commission rates an announcement by a brokerage that it intends to raise commission rates in the coming year
a discussion between a designated broker and her brokers about the brokerage's commission rates Agents within a firm may discuss the brokerage's commission rates without violating Sherman Act prohibitions against price fixing.
Maya and Andrew are real estate agents who work for competing brokerages. They don't like a new discount broker and decide together not to show any of the new broker's listings. This is a violation of the Sherman Act because it is: a group boycott a tie-in arrangement market allocation price fixing
a group boycott A group boycott would include an agreement between two competitors to exclude other companies from fair participation in real estate activities.
The prohibition against discrimination on the basis of disability in the federal Fair Housing Act would not apply to discrimination against: a chronic alcoholic a heroin addict a person diagnosed as having AIDS a person with a mental disability
a heroin addict 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.
According to the Americans With Disabilities Act: a real estate office is considered to be a public accommodation a disability is defined as any permanent physical impairment architectural barriers that prevent access to goods and services must be removed regardless of cost all multi-story buildings must be equipped with elevators
a real estate office is considered to be a public accommodation 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.
In the Fair Housing Act, as amended in 1988, "familial status" refers to: families that consist of at least two adults and one child under 18 years of age families that consist of at least two adults and any dependent children, regardless of age any family with at least one dependent child under the age of 18 any family with a dependent child under the age of 18 or a dependent adult over the age of 55
any family with at least one dependent child under the age of 18 The requirement is at least one adult and at least one dependent under age 18. They do not have to be related by blood or by law.
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: redlining steering panic prediction blockbusting
blockbusting 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.
A licensee hears that a religious group will be opening a commune in a neighborhood. He begins contacting neighbors and telling them about this, encouraging them to list their properties with him before property values decline. This is: blockbusting redlining steering legal
blockbusting Blockbusting occurs when a licensee tries to induce homeowners to list their properties by predicting that persons from a protected class (usually on the basis of race, but also potentially on the basis of religion) will be moving into the neighborhood and that there will be undesirable consequences.
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: can be required to pay a larger security deposit to protect the landlord from damage cannot make any modifications, because the act requires that S be treated the same as all other tenants must obtain the written permission of a majority of the other tenants before the modifications are started can make modifications at her own expense if she restores the unit to its original state when the lease ends
can make modifications at her own expense if she restores the unit to its original state when the lease ends The landlord can require the tenant to restore the apartment to its original condition.
The protected class of "familial status" in the federal Fair Housing Act refers to the presence of: adult children of tenants living on the property children under the age of 18 living on the property persons over the age of 65 living on the property unmarried persons living on the property
children under the age of 18 living on the property Discrimination based on familial status refers to discrimination against someone because a child (a person under 18 years old) is or will be living on the property. In addition to parents, this rule protects legal guardians, pregnant women, and people in the process of obtaining custody of a child.
All of the following must comply with the Americans with Disabilities Act, except a: strip mall with less than 4 businesses church motel with less than 10 units real estate brokerage
church The ADA applies to businesses and other facilities open to the public, as long as they affect commerce, including hotels, restaurants, and brokerage firms.
In 1988, the federal Fair Housing Act was amended to prohibit discrimination based on: substance abuse or age marital status or national origin disability or familial status disability or occupation
disability or familial status The 1988 amendments to the federal Fair Housing Act added prohibitions against discrimination based on familial status or disability.
A minority buyer with a disabled daughter makes a full-price offer on a property. The home doesn't have any grab bars in the bathroom and the front door isn't wide enough for a wheelchair. The seller informs the buyer's agent that the property wouldn't be suitable for the daughter, so he is going to refuse the offer. The buyer's agent should: explain the situation to the buyer, and advise her to consult an attorney and/or file a complaint with HUD instruct the seller to make those modifications at his own expense not say anything to the buyer about the circumstances, but help her find a more suitable property not say anything to the buyer, since a seller can choose who to sell his home to
explain the situation to the buyer, and advise her to consult an attorney and/or file a complaint with HUD The Fair Housing Act prohibits the seller from refusing to sell his property because of a disability of the buyer or a family member of the buyer. The buyer's agent should let the buyer know about her options for legal recourse.
If a real estate agent tells clients that he and his fellow agents won't do business with a certain competing firm, that may be construed as engaging in a/an _______________, which is a violation of antitrust law.
group boycott
The Home Mortgage Disclosure Act: helps to enforce the federal Fair Housing Act's prohibition against redlining helps to enforce the federal Fair Housing Act's prohibition against steering requires lenders to disclose the annual percentage rate for their residential mortgage loans prohibits kickbacks and referral fees in residential loan transactions
helps to enforce the federal Fair Housing Act's prohibition against redlining The Home Mortgage Disclosure Act facilitates the enforcement of federal laws against redlining.
An agent has listed a property at $300,000. Whenever a minority family inquires about the property, however, he tells them that the price is $350,000. Under the federal Fair Housing Act the agent's actions are: legal, since the agent works for the seller, who will want the highest price possible legal, since the minority family isn't being denied the opportunity to purchase the home completely illegal, since the difference between the listing price and the quoted price is more than 5% of the listed price illegal, since the terms of the sale are changed for minority families
illegal, since the terms of the sale are changed for minority families Under the federal Fair Housing Act, it's illegal to change the terms of sale or lease of a property for different potential buyers or tenants.
An agent sends faxes to clients highlighting prospective properties that they might like. The faxes should always include the: address of each property agent's license number brokerage phone number instructions on how to opt out of receiving more faxes
instructions on how to opt out of receiving more faxes Amendments to the Telephone Consumer Protection Act require senders of fax advertisements to include a notice that informs recipients how to opt out of receiving further faxes.
The manager of a six-story, 18-unit apartment building carefully screens tenant applications to make sure that tenants who use wheelchairs are assigned to the first floor. This: is allowed if there's no elevator to the upper floors is an example of a property manager making reasonable accommodations violates the Fair Housing Act violates the Civil Rights Act of 1866
is allowed if there's no elevator to the upper floors The Fair Housing Act has wheelchair-accessibility requirements for apartment complexes built since 1991. However, apartments on the second floor or above in multi-story buildings do not have to be wheelchair-accessible if there is no elevator in the building.
All of the following are true about the Equal Credit Opportunity Act, EXCEPT: it applies to all consumer credit transactions, not just residential lending it prohibits discrimination based on sex, national origin, or marital status it prohibits discrimination based on the receipt of public assistance it requires applicants to disclose whether they plan to have children in the near future, since that will impact their income
it requires applicants to disclose whether they plan to have children in the near future, since that will impact their income Credit applicants are not required to disclose plans for having children, under the Equal Credit Opportunity Act; in fact, doing so might be considered a discriminatory act.
An Asian-American buyer asks to be shown homes that are located in neighborhoods that he knows are primarily Asian. If a real estate agent complies with his wishes, this is: illegal, as it is blockbusting illegal, as it is steering legal, as it is done at the buyer's request legal, as the Fair Housing Act has an exception for single-family homes
legal, as it is done at the buyer's request It is legal for an agent to show a buyer homes in the neighborhoods that the buyer has chosen, even if the buyer chose the neighborhoods based on race. Nothing in the Fair Housing Act requires an agent to show buyers houses against their will.
Darren and Martin are agents for a large brokerage firm. They decide that Darren will specialize in listing and selling houses on the north side of the river and Martin will specialize in listing and selling houses on the south side of the river. Such a practice is: illegal, because only designated brokers may agree to this kind of arrangement illegal, because both federal and state laws prohibit market allocation legal, because the agreement was to increase efficiency (and thus it did not restrict trade) legal, because the prohibition against market allocation does not apply to agents working for the same firm
legal, because the prohibition against market allocation does not apply to agents working for the same firm If Darren and Martin worked for competing brokerage firms, this would be market allocation in violation of the Sherman Act. However, because they work for the same firm, they are technically not in competition with each other and their actions are legal.
Discriminatory conduct that is exempt from the federal Fair Housing Act: is automatically exempt from any state regulations can never result in sanctions for illegal behavior may be still be illegal under the provisions of some other federal or state law is assumed to be legal unless a real estate agent is involved
may be still be illegal under the provisions of some other federal or state law 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.
Unlike the federal Fair Housing Act, the Washington Law Against Discrimination prohibits discrimination based on: sex military status religion national origin
military status The state law prohibits discrimination based on honorably discharged military status, but the federal law does not. (Both the federal law and the state law prohibit discrimination based on sex, religion, or national origin.)
A property manager of a ten-unit building shows an apartment to a woman who uses a wheelchair. The woman says that she would need to make some modifications, such as adding grab bars in the shower and removing some carpeting in the bedroom. The landlord: can refuse to rent to the tenant because of the tenant's proposals must allow the tenant to make the modifications at her own expense, but can require her to restore the property at the end of the lease must allow the tenant to make the modifications at her own expense, and cannot require the tenant to restore the property at the end of the lease must make the modifications and pay for the expenses himself
must allow the tenant to make the modifications at her own expense, but can require her to restore the property at the end of the lease The Fair Housing Act says that a disabled tenant may make reasonable modifications to a leased property at her own expense. The tenant can be required to restore the premises at the end of the tenancy.
The federal Fair Housing Act protects persons based on: marital status age national origin military status
national origin The Fair Housing Act makes it illegal to discriminate based on race, color, religion, sex, national origin, disability, or familial status. State antidiscrimination laws may protect some or all of the other choices, but the federal law does not.
It is legal for a property manager to: collect a larger security deposit from tenants with a service animal obtain employment information to determine if a tenant can afford the rent refuse to rent to families with children refuse to allow a disabled tenant to install grab bars in the bathroom
obtain employment information to determine if a tenant can afford the rent Property managers may take steps to determine whether or not a tenant is able to afford the rent, such as requesting employment and credit information. Antidiscrimination law makes it illegal to charge a disabled person a security deposit for her service animal. Note that the disabled tenant is liable for any damage the animal actually causes, however.
It would violate fair housing laws to specifically advertise housing to: people living in the same neighborhood as the property for sale one particular minority group members of the military financially qualified buyers only
one particular minority group It is a discriminatory act to use advertising that indicates a preference or intent to discriminate.
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: in all cases only if the owner does not own more than three such homes only with respect to discrimination on the basis of familial status or handicap only if the owner does not own more than three such homes and the sale does not involve any discriminatory advertising
only if the owner does not own more than three such homes and the sale does not involve any discriminatory advertising 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 federal Fair Housing Act prohibits blockbusting, a practice also known as: panic selling steering redlining slandering
panic selling 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.
A brokerage consults with several competing firms in order to develop a brokerage fee schedule. This would be illegal _______________.
price fixing
A listing form that contains pre-printed commission rates can be interpreted to be _______________, which is an antitrust violation.
price fixing
The Washington Law Against Discrimination: is only a fair housing law does not apply to places of public amusement such as movie theaters and sports arenas does not apply to discriminatory acts unless a real estate agent is involved prohibits racially restrictive covenants in a warranty deed
prohibits racially restrictive covenants in a warranty deed 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.
The federal Fair Housing Act prohibits discrimination based on any of the following factors except: national origin disability receipt of public assistance income familial status
receipt of public assistance income 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.
A 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: blockbusting redlining steering collusion
redlining Refusing to make loans for discriminatory reasons is redlining, which is illegal.
A 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: blockbusting redlining steering collusion
redlining This is redlining, which is illegal.
Redlining refers to: channeling prospective buyers toward or away from particular areas based on their race or ancestry refusing to make loans in a particular neighborhood because of its racial or ethnic composition inducing owners to list or sell by predicting a change in the racial or ethnic composition of the neighborhood None of the above
refusing to make loans in a particular neighborhood because of its racial or ethnic composition Redlining is a refusal to make a loan because of the racial or ethnic composition of the neighborhood where the property is located.
One of the provisions of the Housing for Older Persons Act: creates a cause of action for lawsuits concerning misrepresentation of the nature of a 55+ property exempts grandparents who will have grandchildren visiting requires that facilities and services for elderly persons must be available in housing that is specifically for persons 55 or older requires that in qualified projects, at least 80% of the units must be occupied by persons 55 years or older
requires that in qualified projects, at least 80% of the units must be occupied by persons 55 years or older The Housing for Older Persons Act establishes criteria for projects that are exempt from prohibitions against familial status discrimination. This exemption includes projects with at least 80% of the units occupied by at least one person 55 years or older. The act, however, does not require that projects must provide facilities and services for elderly persons.
The best description of steering is: recommending to residents of a neighborhood that they sell because persons of a particular race are increasingly moving into the area refusing to make loans in a neighborhood based on the race of the residents showing buyers of a particular race only properties in neighborhoods with many residents of that race telling a buyer of a particular race that a property has been sold when in fact it hasn't
showing buyers of a particular race only properties in neighborhoods with many residents of that race Steering involves channeling buyers or tenants of a particular protected class either toward or away from a neighborhood based on the presence or absence of that protected class.
An agent shows his customer, who is an Asian-American, homes only in neighborhoods that are predominantly Asian-American. This is called: panic selling steering blockbusting redlining
steering 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, in violation of fair housing laws.
An agent shows his customer, who is Asian-American, homes only in neighborhoods that are predominantly Asian-American. This is called: channeling steering blockbusting redlining
steering 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.
If a real estate agent is sending out emails offering his services, the federal CAN-SPAM Act requires the agent to: avoid emailing persons on the "do not call" list include the brokerage firm's name as licensed make sure that a licensee, not an unlicensed person, was responsible for the content tell recipients how to opt out of receiving future emails
tell recipients how to opt out of receiving future emails The CAN-SPAM Act is a federal law that places limits on unsolicited emails. One requirement is that an email must give information on how recipients can avoid receiving further emails.
One important distinction between the Civil Rights Act of 1866 and the federal Fair Housing Act is that: the 1866 Civil Rights Act does not apply to residential transactions the 1866 Civil Rights Act does not prohibit discrimination based on race the Fair Housing Act does not prohibit discrimination based on religion the Fair Housing Act does not apply to nonresidential transactions
the Fair Housing Act does not apply to nonresidential transactions 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.
The Washington state agency that is responsible for enforcing antidiscrimination laws is: the Human Rights Commission the Civil Rights Commission the Civil Liberties Commission the Fair Practices Board
the Human Rights Commission In Washington, antidiscrimination laws are enforced by the Human Rights Commission.
Under the federal Fair Housing Act, it is not illegal to refuse to sell a condominium unit to a family with children if: the condominium qualifies as housing for older persons, with 80% of the units occupied by at least one person over 55 the condominium is advertised as an Adults Only complex the family includes one or more children under ten years old All of the above
the condominium qualifies as housing for older persons, with 80% of the units occupied by at least one person over 55 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.
The federal Fair Housing Act allows discrimination on the basis of familial status provided that: at least 50% of the units in the project are available to families with children the project was developed under a government program to assist the elderly at least 90% of the units in the project are occupied by at least one person over the age of 62 at least 50% of the units in the project are occupied by at least one person over the age of 55
the project was developed under a government program to assist the elderly Children may be excluded from properties that were developed under a federal program to assist the elderly.
A buyer is considering purchasing a store in a standalone building in a strip mall. The building has steps in front, without a ramp, and no disability parking spots in front. The buyer's agent should tell the buyer that: it would be prohibitively expensive to bring the property into compliance with the ADA the property complies with all federal antidiscrimination laws the property probably does not comply with the Americans with Disabilities Act the property does not comply with the Fair Housing Act
the property probably does not comply with the Americans with Disabilities Act A retail store open to the public would be a public accommodation, subject to the Americans with Disabilities Act. The building's owner would need to remove architectural barriers to persons with disabilities, for instance by building a wheelchair ramp.
A landlord may legally reject a tenant's application for a lease if: the tenant's family is too large for the rental unit the tenant's family has small children the tenant is physically disabled the tenant is mentally impaired
the tenant's family is too large for the rental unit 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's an illegal _______________ when someone will agree to sell one product only if the buyer agrees to purchase another product too.
tie-in arrangement
A prospective tenant applies to rent a unit in a 12-unit apartment building, where the owner lives in one of the units and handles all lease transactions on his own. The tenant is turned down, and believes he has been discriminated against on the basis of his race. If true, this would be: lawful, because no discriminatory advertising was used lawful, because the owner lives on the premises lawful, because no real estate agent was used unlawful, because this is a 12-unit building
unlawful, because this is a 12-unit building If the rental application was in fact turned down because of the tenant's race, this would be a violation of the Fair Housing Act. There is no exemption that applies to this transaction: even though the owner lives on the premises and did not employ a real estate agent, the "Mrs. Murphy" exemption only applies to dwellings with four or fewer units. Note in addition that the Civil Rights of 1866 flatly prohibits racial discrimination in housing, without regard to building size or any other factor.