section 11 unit 2: Fair Housing and Antitrust Laws in South Carolina

Lawsuits, damages, fines, attorney fees a. consequence for violated law b. consequence for doing the right thing

a. consequence for violating law

License suspension or revocation a. consequence for violating law b. consequence for doing the right thing

a. consequence for violating law

A landlord charges an extra $50 security deposit for each child living in a property. a. discriminatory b. not discriminatory

a. discriminatory

Everything stays the same, except one couple speaks with Russian accents. a. possible test b. not a test

a. possible test

Everything stays the same, except one couple wears clothing typical of people who practice Islam. a. possible test b. not a test

a. possible test

Now Thad pretended to be a seller instead of a buyer. "We've lived here 10 years and love our neighbors. They're really concerned about the changes happening on the blocks around us. We want to be careful about who we sell this house to, as a consideration to the friends we're leaving behind. You know what we mean? You'll help us find the 'right' kind of buyer, won't you?" Nancy stumbled with this one, as well. Eventually, she found a suitable response. Which one is it? a. "It would be illegal to limit the search based on race, religion, or anything like that, but I promise I'll find you the most qualified buyer I can, and we'll sell this house for the highest price possible." b. "I can't technically do that, but I could choose to advertise only in certain publications that target a wealthy white readership." c. "Let's keep this off the record. As long as we can come up with other reasons to disqualify the buyers you don't want, we'll be okay. We just need to make sure it all looks legitimate from the outside."

a. "It would be illegal to limit the search based on race, religion, or anything like that, but I promise I'll find you the most qualified buyer I can, and we'll sell this house for the highest price possible."

Which of these is a recommended strategy for a real estate professional who wants to avoid being asked to violate fair housing laws? a. Let consumers know up front that you adhere to fair housing laws. b. Only work with clients who are the same race as you. c. Quiz clients on their views about protected classes. d. Require your clients to complete training on fair housing laws.

a. Let consumers know up front that you adhere to fair housing laws.

Nancy encourages residents to sell now and avoid declining house values that are likely to accompany an influx of minorities. a. blockbusting b. steering c. redlining

a. blockbusting Blockbusting busts up the block by encouraging people to leave it.

Which of the following is/are illegal? a. Both disparate impact and disparate treatment b. disparate impact c. disparate treatment d. Neither disparate impact nor disparate treatment

a. both disparate impact and disparate treatment

This time, Thad tossed out an example that's the most difficult for new licensees. "I know you technically can't show me just the white neighborhoods, but I'm paying for your help. My time is valuable, and I don't want to waste it looking at houses in neighborhoods I wouldn't live in. If you can't screen properties for me the way I want you to, I'll find someone who can." Which response is the appropriate one? a. "I'm sorry that you feel that way. I'm obligated to obey my clients' requests, but I'm going to need you to write up your request and sign it, so there's no way I can get in trouble for fair housing violations." b. "I'm sorry that you feel that way. If I can't change your mind, I think we should terminate our agreement." c. "I'll do my best, but just to make sure it doesn't look as suspicious, we'll need to include at least one showing in a minority neighborhood."

b. "I'm sorry that you feel that way. If I can't change your mind, I think we should terminate our agreement." New licensees are trying hard to build a referral base. Because of this, they have a very hard time turning away clients that a more experienced professional would ditch in a heartbeat. Not all clients are good for your business. Don't be afraid to quit working with the wrong ones.

Thad pretended to be a client. "We're looking for a three-bed, two-bath. We have two little kids, so we want to make sure we're in a good neighborhood—somewhere safe, where we'll find a lot of good families and neighbor kids that we'd want our children to play with." Nancy tried the following responses, but Thad said they were all somewhat discriminatory except ... which one? a. "If you provide me with specific kinds of people you want to avoid, I can screen the properties more closely." b. "If you provide me with specific neighborhood names, I can certainly look for homes in those areas. You can learn about the different neighborhoods in the area at neighborhoodscout.com." c. "I can screen neighborhoods based on good school districts for you. That usually means you'll end up in the kind of neighborhood you want."

b. "If you provide me with specific neighborhood names, I can certainly look for homes in those areas. You can learn about the different neighborhoods in the area at neighborhoodscout.com."

Ridicule or threat of violence a. consequence for violating law b. consequence for doing the right thing

b. consequence for doing the right thing

Everything stays the same, except the man has a criminal record. a. possible test b. not a test

b. not a test Criminal history is a legal way to screen potential tenants and is not discriminatory.

No barbecue grills are allowed on balconies. a. discriminatory b. not discriminatory

b. not discriminatory

No skateboards, bicycles, wheelchairs, or anything else that could scuff the historic hardwood floors are allowed in the building. a. discriminatory b. not discriminatory

b. not discriminatory

When working with an African-American client, Nancy makes an effort to show them homes in primarily African American communities. a. blockbusting b. steering c. redlining

b. steering Steering steers people to or away from specific neighborhoods

An illegal practice in which licensees or others encourage homeowners to sell because of an influx or expected influx of minorities into the area

blockbusting

How should you respond if your buyer says the following? "We're looking for a three-bedroom, two-bathroom home. We have young children, so we want to make sure we're in a good neighborhood—somewhere safe, where we'll find a lot of good families and neighbor kids that we'd want our children to play with." a. "I can screen neighborhoods based on good school districts for you. That usually means you'll end up in the kind of neighborhood you want." b. "If you provide me with specific kinds of people you want to avoid, I can screen the properties more closely." c. "If you provide me with specific neighborhood names, I can certainly look for homes in those areas. You can learn about the different neighborhoods in the area at neighborhoodscout.com." d. "Let's keep this off the record. We just need to make sure it all looks legitimate from the outside."

c. "If you provide me with specific neighborhood names, I can certainly look for homes in those areas. You can learn about the different neighborhoods in the area at neighborhoodscout.com."

How would you respond if your seller makes the following request? "We've lived here 10 years and love our neighbors. They're really concerned about the changes happening to the blocks around us, so we want to be careful about who we sell this house to. You know what we mean. You'll help us find the 'right' kind of buyer, won't you?" a. "I can't technically do that, but I could choose to advertise only in publications that target a white readership." b. "I'm sorry that you feel that way. I am obligated to obey the requests of my clients, but I'm going to need you to write up your request and sign it, so there's no way I can get in trouble for fair housing violations." c. "It would be illegal to limit the search based on race or religion or anything like that, but I promise I'll find you the most qualified buyer I can, and we'll sell this house for the highest price possible." d. "Let's keep this off the record. As long as we can come up with other reasons to disqualify the buyers you don't want, we'll be okay. We just need to make sure it looks legitimate from the outside."

c. "It would be illegal to limit the search based on race or religion or anything like that, but I promise I'll find you the most qualified buyer I can, and we'll sell this house for the highest price possible."

Discrimination often happens out of the public eye, which is one reason it continues to occur. Take a few minutes to watch the video in your resources, then determine which of these statements describes a standard process currently used to discover discriminatory practices. a. Human rights advocates interview specific protected classes to make sure they haven't experienced recent discrimination. b. Human rights advocates call lenders and landlords to ask about their discriminatory policies. c. Human rights advocates test real estate and mortgage professionals using pairs of testers that match in everything except their protected classes.

c. Human rights advocates test real estate and mortgage professionals using pairs of testers that match in everything except their protected classes. Testers tend to see patterns in discrimination. Let's look at a few examples that testers working for our fictional Discrimination Testing Unit have seen.

Which of these situations represents the illegal practice of redlining? a. Arlo, a licensee, distributed a flyer in several neighborhoods warning of impending commercial developments that would negatively impact property values. b. Eunice refuses to allow her agent to show her house to families with children. c. Hunter, a mortgage broker, refuses to underwrite mortgage applications from applicants who are buying in specific neighborhoods. d. Jaime is working with Korean clients. He's focusing on homes in Korean communities because he thinks his clients will be more comfortable there.

c. Hunter, a mortgage broker, refuses to underwrite mortgage applications from applicants who are buying in specific neighborhoods.

We hope this will never happen to you, but if you're ever threatened by someone who's unhappy that you wouldn't violate fair housing law, to which entity should you report the threat? a. National Fair Housing Alliance b. Department of Housing and Urban Development c. law enforcement

c. law enforcement

A lending company denies all loans for properties south of the river because of the demographics of the area. a. blockbusting b. steering c. redlining

c. redlining

In 1934, when the Federal Housing Administration was created, it adopted the practice of crossing off cities and neighborhoods it considered risky and withheld mortgage funds from those areas. What is this action called? a. blockbusting b. gerrymandering c. redlining d. steering

c. redlining

The Millers moved to a small town and were interested in buying a house. At the first meeting with real estate sales professional Nora, she asked them where they went to church. They replied that they were atheists and didn't attend church. Nora then told them that she didn't know of any listings that met their needs, even though that wasn't true. Nora is discriminating based on _______. a. familial status b. national origin c. religion d. sex

c. religion

Which of these might bring a charge of illegal steering against a licensee? a. Benny screens the properties he shows his clients based on the clients' preferences. b. Johnny is working with a client who has a disability. At the client's request, Johnny refrains from showing the client listings that aren't ADA accessible. c. Norton encourages his clients to contact local agencies to learn more about a neighborhood's schools, crime rates, and religious institutions. d. When working with single female clients, Cassandra is careful to promote properties in neighborhoods she considers safe.

d. When working with single female clients, Cassandra is careful to promote properties in neighborhoods she considers safe.

Disparate _________________ refers to practices that have a greater effect on one protected class over another. For example, refusing to rent to anyone on Social Security would affect more people withdisabilities than people without.

impact

The practice of a lender to refuse to lend in a specific area, often based on the minority makeup of the area.

redlining

The illegal practice of nudging buyers away or toward a specific area based on the presence or absence of protected class members in the area relative to the buyers.

steering

The impact of the policy is just as illegal when it results in disparate __________________ , which is when you act differently with one protected class than with another.

treatment