Chapter 3 - 5

An agent may discriminate against a potential buyer on the basis of... a. inability to pay. b. sex. c. race. d. none of these options.

a. inability to pay.

The Civil Rights Act of 1866 a. is considered to be a part of the 14th Amendment to the U.S. Constitution. b. was the underlying basis for the decision in Jones vs. Mayer. c. declared it unlawful to discriminate in all matters, not just housing, on the basis of the race of an individual. d. all of these options.

b. was the underlying basis for the decision in Jones vs. Mayer.

Encouraging a homeowner to sell his or her property because minority group families are moving into the neighborhood is: a. Redlining. b. Steering. c. Blockbusting. d. Puffery.

c. Blockbusting.

Which of the following statements, included in an advertisement, would constitute a Fair Housing violation? a. Non-smokers preferred. b. Military discount. c. Catholics preferred. d. Senior citizens welcome.

c. Catholics preferred.

Which of the following is NOT specifically protected by the various fair housing statutes? a. People in a particular religious group b. People who are physically handicapped c. Current drug users d. Persons previously confined to a mental institution

c. Current drug users

If a person has been discriminated against in a real estate transaction, they would file a complaint with the: a. Local Association of Realtors. b. National Association of Realtors. c. Department of Housing and Urban Development. d. Department of Health, Education and Welfare.

c. Department of Housing and Urban Development.

A broker takes a listing from a seller who later tells the broker that the house should not be shown to a minority person. The broker should: a. Note this on the MLS form. b. Make written acknowledgment of the instructions. c. Explain that he/she cannot comply because this violates Federal law. d. Avoid discussion of the request.

c. Explain that he/she cannot comply because this violates Federal law.

The Fair Housing laws do NOT provide protection on the basis of: a. Gender. b. Handicapped. c. Homosexuality. d. Single parenthood.

c. Homosexuality.

Salesperson Sally his a buyer's listing with Buyer Bill. Sally shows Bill homes in several nearby neighborhoods. Buyer Bill asks Salesperson Sally which neighborhood has the highest percentage of minority homeowners or residents. What response should Sally give to Bill? a. Research local census data information and provide that information to Bill. b. Answer the question to the best of her personal knowledge. c. Inform Bill that it is a violation of fair housing law to sell properties based on racial or ethnic characteristics of the neighborhood so she does not gather or provide that information. d. Terminate her contract with Bill and report a potential violation of fair housing laws to federal or state authorities.

c. Inform Bill that it is a violation of fair housing law to sell properties based on racial or ethnic characteristics of the neighborhood so she does not gather or provide that information.

What action did the U.S. Supreme Court take in the Jones vs. Mayer case? a. It prohibited redlining. b. It upheld the prohibition against blockbusting. c. It upheld the Civil Rights Act of 1866. d. All of these choices.

c. It upheld the Civil Rights Act of 1866.

The Anytown Helpers is a charitable group run by a local church. They provide temporary low-cost housing to people with children who are poor and/or victims of abuse. They give preference to those who are members of the church. Does this violate the Fair Housing Act of 1968? a. Yes, in all cases. b. No, in no case. c. No, as long as the church does not discriminate in membership against any protected class. d. Yes, unless the church has received a specific waiver from HUD.

c. No, as long as the church does not discriminate in membership against any protected class.

A couple with good income and excellent credit want to buy and renovate an older home located in an economically distressed neighborhood. They have been turned down by 3 different lenders. This is an example of: a. Good judgment on the part of lenders. b. Blockbusting. c. Redlining. d. Steering.

c. Redlining.

How can a broker best demonstrate his compliance with Fair Housing laws? a. Display the Equal Housing Opportunity Poster in the office and all places of business. b. Document all transactions with all clients or customers. c. By showing all prospective buyers all property for which they are financially qualified. d. All of these choices.

d. All of these choices.

Who is required to comply with the Fair Housing Laws? a. Only real estate professionals. b. Real estate professionals and lenders. c. Real estate professionals, lenders and insurance companies. d. Everyone, unless specifically exempted by the law.

d. Everyone, unless specifically exempted by the law.

Who is required to comply with the Civil Rights Act of 1866? a. Only licensed real estate professionals. b. Real estate professionals and insurance complainants. c. Lenders and real estate professionals. d. Everyone, without exception.

d. Everyone, without exception.

If a person is alleged to have violated the Civil Rights Act of 1866, the complainant would file suit in which of the following? a. District Court of Appeals. b. Superior Court. c. Civil Court. d. Federal Court.

d. Federal Court.

A broker brought a ready, willing and able minority buyer who signed an offer to buy a house at the listed price. Because of the buyer's race, the sellers refused the offer. The broker may legally take all of the following actions EXCEPT: a. Sue the seller for his commission b. Advise the prospect of his right to complain to the U.S. Department of Housing and Urban Development (HUD) c. Warn the sellers that their refusal is a violation of Fair Housing laws d. Market the house only to non-minority customers

d. Market the house only to non-minority customers

Which of the following property owners would be exempt from the prohibition against discrimination in the Civil Rights Act of 1866? a. The owner of a single-family residence who owns 3 or less such residences and does not use a licensed real estate agent. b. A religious organization that gives housing preferences to its members. c. Both of these choices. d. None of these choices.

d. None of these choices.

XYZ Mortgage Co. has an established 80% L/V ratio on loans for owner occupied housing. It has further established that home loans made for property located in the Sand Hills subdivision require a 70% L/V ratio because this subdivision is considered less desirable. Which of the following statements is correct? a. A minority person applying for a home loan in the Sand Hills subdivision can only be required to meet the 80% L/V criteria. b. XYZ is prohibited by the Federal Fair Housing Law from having two separate loan policies. c. Real estate brokers would be in violation of the Fair Housing Law if they refer prospective buyers to XYZ for any loan. d. The policy of XYZ is referred to as redlining.

d. The policy of XYZ is referred to as redlining.

Larry Licensee runs an ad for one of his listings. The ad contains the phrase "nearby St. Andrew Roman Catholic Church." This would be considered: a. Acceptable advertising if true. b. A violation of the separation of church and state. c. A violation of the Civil Rights Act of 1866. d. The use of a "trigger term" under the Fair Housing Act of 1968.

d. The use of a "trigger term" under the Fair Housing Act of 1968.

The 1988 Amendment to the Federal Fair Housing Act, Title VIII, declared it unlawful to discriminate: a. Against households with children under 18 years of age. b. On the basis of age. c. Because of sexual preference. d. On the basis of the sex of the buyer or renter.

a. Against households with children under 18 years of age.

Which of the following individuals would be considered a member of the "familial status" protected class? a. A same-sex couple who are in the process of adopting a child. b. A married couple with no children. c. A single female. d. All of these choices.

a. A same-sex couple who are in the process of adopting a child.

An owner is listing his rental property with a broker. Based on past experience, the owner feels that females cause less damage and tells the broker that he only wants to rent to females. What should the broker do? a. Advise the owner that this restriction is illegal. b. Follow the owner's instruction because of the basic principles of property management (to protect the client's interest). c. Accept the listing and give preferential treatment to female applicants. d. Follow the owner's instructions because of the fiduciary relationship.

a. Advise the owner that this restriction is illegal.

Each of the following would be considered a "person with a disability," EXCEPT: a. An individual who currently uses illegal drugs. b. A person with a past history of mental impairment. c. A person with a learning disability. d. A person who has difficulty walking.

a. An individual who currently uses illegal drugs.

Many Korean families have purchased homes in an older neighborhood of your community. Most merchants in the area now cater to the Korean clientele. A Caucasian resident of the area has listed his house for sale with your firm. You list the property in the MLS. You also place a bi-lingual ad in the newspaper and a bi-lingual "For Sale" sign on the property. Are your actions discriminatory? a. No, this is proper marketing practice. b. No, because you are targeting the market most likely to purchase the property. c. Yes, because national origin is protected by the 1968 Fair Housing Law. d. Yes, because bi-lingual ads are a form of steering.

a. No, this is proper marketing practice.

Larry Licensee shows a minority prospect homes only in neighborhoods which are predominantly populated by minorities. Larry has engaged in: a. Steering. b. Blockbusting. c. Redlining. d. Reverse redlining.

a. Steering.

In Fair Housing discrimination cases, the burden of proof is on the claimant. The claimant must be able to prove: a. That discrimination occurred. b. That the act of discrimination was not provoked by the claimant. c. Only that the accused partly intended to discriminate. d. Actual damages resulted from the acts of the accused.

a. That discrimination occurred.

A seller who refuses to sell his home to a person from Afghanistan after the person has made a bona fide offer for the home is violating the Federal Fair Housing Law. a. True b. False

a. True

FHA-financed developments must undertake affirmative marketing to attract a cross-section of the community. a. True b. False

a. True

With respect to Federal Fair Housing Laws, the term "familial status" is applicable if at least one member is under the age of 18, is pregnant, or has applied for custody of a minor child. a. True b. False

a. True

With respect to Federal Fair Housing Laws, the term "family" includes a single individual, whether male or female. a. True b. False

a. True

According to the 1988 Fair Housing law, which of the following is NOT considered to be handicapped? a. A person confined to a wheel chair. b. A person addicted to a controlled substance. c. Someone suffering from a mental illness. d. A person who, by their actions, is believed to be insane.

b. A person addicted to a controlled substance.

Laura Licensee tells people that the ethnic characteristics of the neighborhood are changing and they should consider selling their homes because of this. Laura has engaged in: a. Steering. b. Blockbusting. c. Redlining. d. Reverse redlining.

b. Blockbusting.

John Doe is trying to rent one bedroom in his house. A Hispanic applies and is told by the owner (Doe), "I will only rent to a Caucasian." Which law has John violated, if any? a. 1968 Fair Housing Law. b. Civil Rights Act of 1866. c. Civil Rights Act of 1964. d. There is no violation, as owner John Doe is exempt from the law.

b. Civil Rights Act of 1866.

A local ordinance that limits the maximum number of occupants permitted to occupy a dwelling would violate Fair Housing Laws. a. True b. False

b. False

The Fair Housing Amendment Act of 1988 concerning handicapped access applies to multi-family dwelling units, regardless of when they were built. a. True b. False

b. False

Transvestites and drug addicts are protected classes under Federal Fair Housing Laws, who cannot be discriminated against in housing. a. True b. False

b. False

The 1988 Fair Housing Amendments Act added which of the following protected classes to the Fair Housing Act? a. National origin. b. Familial status. c. Both national origin and familial status. d. Neither national origin nor familial status.

b. Familial status.

A landlord may reject the application of a person with a mental disability: a. Without restriction. b. If there is evidence that the person represents a threat to the safety of the other tenants. c. In no case. d. If the applicant cannot produce a Certificate of Recovery from a qualified mental health professional.

b. If there is evidence that the person represents a threat to the safety of the other tenants.

The Civil Rights Act of 1866 prohibits discrimination on the basis of: a. Sex. b. Race. c. Religion. d. Marital status.

b. Race.

In 1968 the Supreme court ruled in the Jones vs. Mayer Co. case. The courts' decision upheld the law which provides protection on the basis of: a. Sexual discrimination. b. Racial discrimination. c. Discrimination on the basis of national origin. d. Religious discrimination.

b. Racial discrimination.

The enforcement of the Fair Housing Law of 1968 is the responsibility of: a. The Federal Housing Administration. b. The Department of Housing and Urban Development. c. The Federal National Mortgage Association. d. The Government National Mortgage Association.

b. The Department of Housing and Urban Development.

Claims filed with HUD for alleged Fair Housing violations must be filed within a. 90 days. b. 180 days. c. 1 year. d. 2 years.

c. 1 year.

The 1988 amendment to the Fair Housing Law affords protection on the basis of familial status. Which of the following best defines a family as it applies to this amendment? a. Legally married persons. b. A household in which there are children related to the adults by blood. c. A household in which there are children under 18 years of age. d. Any household in which there are children, regardless of age.

c. A household in which there are children under 18 years of age.

Nice and Easy Loan Company has a policy of either restricting the availability of loans or requiring lower LTV ratios for loans made in areas of the community which they consider "high risk" areas. This practice is known as: a. Steering. b. Blockbusting. c. Redlining. d. Good business.

c. Redlining.