Real Estate Chapter 2

Americans with Disabilities Act (ADA)

A federal law protecting the rights of individuals with physical or mental impairments.

Civil Rights Act of 1866

A federal law that prohibits all discrimination on the basis of race.

Civil Rights Act of 1964

A law that prohibited discrimination on the basis of race, color, national origin, or gender in any housing program receiving federal money.

Real Estate Settlement Procedure Act (RESPA)

A consumer protection statue, first passed in 1974. The purpose of RESPA are: 1) To help consumers become better shoppers for settlement services and 2) To eliminate kickbacks and referral fees that unnecessarily increase the costs of certain settlement services.

Department of Housing and Urban Development (HUD)

A federal agency that administers funding for projects related to housing.

Blind Advertising

An ad that remains anonymous as to who is advertising.

Material Fact

Any fact that would influence the decision of a reasonable prudent person.

Trust Funds

Funds held by a real estate broker, in trust, for clients and/or customers.

Deceit

Making a statement of fact that you know not to be true. Making a statement of fact in which no one has the grounds to believe it is true, or failing to disclose a "material fact."

Regulation Z

The Truth in Lending Act of 1968 is United States federal law designated to promote the informed use of consumer credit, by requiring disclosures about its terms and cost to standardize the manner in which costs associated with borrowing are calculated and disclosed.

Fraud

The intentional and successful employment of any cunning, deception, collusion, or artifice, used to circumvent. cheat or deceive another person whereby that person acts upon it to the loss of property and to legal injury.

Good Faith Estimate

The lender's estimate of the borrower's settlement costs; RESPA is required to furnish it to the borrower at the time of loan application.

Redlining

The refusal to lend money within a specific area for various reasons.

Annual Percentage Rate (APR)

The relative cost of credit as determined in accordance with Regulation Z of the Board of Governers or the Federal Reserve System for implementing the Federal Truth in Lending Act.

Commingling

To mingle or mix, for example, a client's fund in the broker's personal or general account.

Blockbusting

The use of prejudice to instill fear, or panic (also known as panic selling), in order to motivate individuals in a particular are or neighborhood to sell or dispose of their property because of their entrance, or potential entry, of a protected class.

Steering

Using racial, ethnic, or religious criteria in suggesting, recommending, and/or influencing individuals regarding locations for the purchase or rental of a single family residence or rental dwelling.

Creditor

A person who is regularly extends consumer credit that is subject to a finance charge, or is payable by a written agreement in more than four installments, not including the down payment, and to whom the obligation is initially payable, either on the face of value of the note or contract, or by agreement where there is no note or contract.