Section 2 & 3: Brokerage and Agency in DE / Fair Housing in DE

Members of a federally protected class who believe they've been victims of housing discrimination can file a complaint directly on HUD's website. Which four of these statements about filing a complaint are true?

- Complaints must be filed within one year from the time the suspected discrimination occurred. -The complaint form asks the consumer to describe the alleged discrimination. -Complaints must specify the victim's protected class status, who perpetrated the discrimination, and exactly where the discrimination occurred. -A fair housing specialist is the first to review a victim's claim.

Cara has been prosecuted for fair housing violations, and the list of charges is long. What kind of penalties could she be facing?

- Pay for actual damages - $50,000 fine - Pay for punitive damages - New policies required - Pay legal fees for the victims

Coverage under the Fair Housing Act include: Housing designated for senior use. Senior housing must meet any of the following specific requirements to qualify for this exemption:

-HUD has determined that the dwelling is specifically designed for and occupied by elderly persons under a federal, state, or local government program -It is occupied solely by persons who are 62 or older -It houses at least one person who is 55 or older in at least 80% of the occupied units, and adheres to a policy that demonstrates intent to house persons who are 55 or older.

Which of the items below are fiduciary duties you, as an agent, would owe a client with whom you have a common law agency relationship?

-Obedience -Loyalty -Disclosure -Confidentiality -Accounting

When Does Agency Terminate?

-The client's goals were met during the term of the agency agreement (i.e., the sale is completed). -The specified term in the agency agreement expires. -The client and agent mutually agree to dissolve the relationship. -The property is destroyed for any reason, making the property unmarketable. -The client revokes the agreement with cause prior to the agreement's expiration date. -The client revokes the agreement with cause prior to the agreement's expiration date.

You're a licensee representing a client who's looking to buy a condo. She'd like to buy a unit in a small complex near her work. You discover that the complex does have an available unit, and you contact the broker. You ask if you can show your client the unit, but the broker refuses, saying he can't sell to your client. Under what two circumstances would this be allowed under fair housing law?

-The property is owned by a religious organization or a private club. -Residency in the condo complex is restricted to members of the organization that owns the complex.

Housing built after March 13, 1991 that has four or more dwelling units is required to meet seven design and construction requirements. What are these requirements?

-Usable kitchens and bathrooms -Accessible entrance -Accessible route into and through the dwelling unit -Accessible light switches, electrical outlets, thermostats, and environmental controls -Reinforced walls in the bathrooms -Usable doors -Accessible public and common use areas

According to fair housing laws, the protected class of familial status refers, in part, to those with children, who are defined as anyone under the age of ______.

18

Match the definition with the appropriate fiduciary duty. Properly handle all money or property entrusted to you

Accounting

Sue is a Delaware licensee who has a common law agency agreement with a seller client. To whom must she disclose the relationship?

All unrepresented parties

Which act sets guidelines for public and common use areas at housing developments?

Americans with Disabilities Act

Rhonda and Jade both consider themselves African-American, although Rhonda has much darker skin and hair than Jade. When Rhonda went to the Valley Falls apartment manager's office to request a rental application, she was told there were no vacancies. Jade went in a day later and received an application. This may be discrimination based on ______.

Color

Which three classes are protected classes you would include as you finish the list?

Color, National Origin and Religion

Match the definition with the appropriate fiduciary duty. Keep information shared by the client private

Confidentiality

There are two fiduciary duties that continue beyond the relationship. What are they?

Confidentiality & Accountability

Javier represents Marcus, who's selling his rental property to Ben. Ben is represented by another real estate licensee, Francis. What is Ben's relationship to Javier?

Customer

Which of these groups is responsible for receiving fair housing complaints? A. The Office of Fair Housing Complaints B. Law enforcement officials C. The Civil Rights Coalition D. The Office of Fair Housing and Equal Opportunity

D. The Office of Fair Housing and Equal Opportunity

What entity generally enforces the Fair Housing Act?

Department for Housing and Urban Development (HUD). HUD generally receives the complaints and enforces the act, although victims do have the option of filing a civil suit with a federal district court within a year of the violation.

Cara the property manager has some more decisions to make. Choose the appropriate text to complete the story. At the apartment complex that Cara manages, parking is provided on a first-come, first-served basis. When a tenant who uses a wheelchair requests a designated space near the door, Cara denies the request because the other tenants would think it's unfair. This is discrimination based on ____ because Cara is not providing ____

Disability ..... reasonable accommodation

Match the definition with the appropriate fiduciary duty. Divulge all facts pertinent to the transaction

Disclosure

Revealing all material facts to the client that are pertinent to the transaction describes which fiduciary duty?

Disclosure

Half of the residents are older than 50, and there are no children. Exemption or Non-Exempt?

Doesn't Meet Exemption Requirements

Which act provides consumers with remedies if they become victims of discrimination in the sale, rental, or financing of housing?

Fair Housing Amendments Act of 1988

Your client submits an application to rent a condo unit. He has excellent credit and been in the same job for a long time. He uses a cane to help him with mobility. When his application is rejected, he feels it's due to his disability. He is protected under ______.

Fair Housing Amendments Act of 1988

Federal Fair Housing Law Exemptions

Fair housing law was designed to protect citizens from discrimination. It was not designed to prohibit non-discriminatory behavior, or even certain behaviors that discriminate, but to protect citizens seeking housing

Commercial and retail properties are subject to the same restrictions for common law agency as one- to four-family properties.

False

Common law agents can perform additional duties for customers, like negotiating on their behalf or helping them decide how much to offer, as long as the other party in the transaction isn't your client. t/f

False

Disability rights only protect individuals with physical impairments. T/F

False

If a housing provider would need to change the rules or policies in order to reasonably accommodate a person with disabilities, the provider is exempt from having to do so. T/F

False

It's okay for a common law agent to negotiate on behalf of a buyer customer who's at the seller client's open house. t/f

False

What type of discrimination is occurring when a policy prohibits children from living in rental housing and places conditions on a tenant's residency based on the ability to find alternate accommodations for underage children.

Familial status

Terry represents seller Farrah, and Michael represents Troy, the buyer. Who is (or are) the principal(s) in this transaction?

Farrah and Troy

Which act created the Office of Fair Housing and Equal Opportunity under the Department of Housing and Urban Development?

Federal Fair Housing Act of 1968

Phil is a property manager, which means he serves as a ______ agent to his landlord/client.

General

What type of agent? Enters into contracts on behalf of the client

General agent

What type of agent? Property managers generally serve in this role

General agent

What type of agent? Provides the responsibility to handle all dealings for a specific piece of client property

General agent

As a real estate licensee, you'll be a _______ agent

General. As in the case of a property manager

Coverage under the Fair Housing Act include: Single-family housing sold or rented without the use of a broker

If the private individual owner does not own more than three such single-family homes at one time.

In most cases, what type of agent is a real estate licensee when working with a client on a real estate sale?

Limited or special

Match the definition with the appropriate fiduciary duty. Put client's interests ahead of all others

Loyalty

Putting clients' interests ahead of all others describes which fiduciary duty?

Loyalty

All of the residents at Shady Pines are at least 62 years old. Exemption or Non-Exempt?

Meets Exemption Requirements

HUD determined the complex was specifically designed for seniors. Exemption or Non-Exempt?

Meets Exemption Requirements

Of the residents, 80% are 55 years old or older, and there's a policy in place to keep it that way. Exemption or Non-Exempt?

Meets Exemption Requirements

Which of these situations does the Americans with Disabilities Act address?

Meridian Apartments provides a gym and pool area for residents, but it's not accessible to residents who use wheelchairs.

Carly, the property manager for several large apartment complexes, would like to control her tenant base just like Mrs. Murphy does. Why is Mrs. Murphy allowed to discriminate, when Carly isn't?

Mrs. Murphy lives in the property, which has fewer than four rental units. If Mrs. Murphy had five units to rent instead of one, she wouldn't be exempt. This is a very limited exemption and requires the owner to live on the property, and that owner can only lease a maximum of four units.

We'd like to introduce Alison, a real estate licensee for a Delaware brokerage that exclusively practices single agency and common law agency, in particular. Alison just received a call from the Masons. They're interested in putting their house on the market and would like to talk more with her about this process. Alison meets with the Masons the next day and is excited about this new prospect. She leaves them with her business card and a promise to call back in two months when they say they'll be ready to act. In return, Alison leaves with an unsigned agency agreement and contact information for their son, Brent, who's ready to buy his first home. According to common law agency, are the Masons Alison's clients?

No.In common law agency agreements, when there's no agency agreement in place, the Masons aren't Alison's clients. Let's try another.

Renting out a unit in a multifamily housing property that was built in 1970 and does not meet current ADA standards. Violation or not?

Not

Remembering the acronym ______ can help you remember the fiduciary duties an agent owes to a client.

OLD CAR

Following all of the client's lawful instructions describes which fiduciary duty?

Obedience

Match the definition with the appropriate fiduciary duty. Follow client instructions (just the lawful ones, though)

Obedience

Match the definition with the appropriate fiduciary duty. Provide clients with quality, knowledgeable, and prudent service

Reasonable skill and care

Which of the following definitions best describes a consumer?

Someone who uses or purchases a product or service

What type of agent? Acts as an intermediary, but doesn't make decisions or enter into contracts on the client's behalf

Special agent

What type of agent? Most real estate transactions involving a buyer and seller deal with this type of agency

Special agent

What type of agent? Provides limited authority to act on a client's behalf

Special agent

Stacey, a buyer, is working with Rebecca, a licensee, in a state that doesn't recognize or permit implied agency. Rebecca doesn't represent Stacey, however, and is performing only ministerial tasks for her. Which of the following statements about this situation is correct?

Stacey is Rebecca's customer.

How does the Office of Fair Housing and Equal Opportunity (FHEO) support real estate consumers?

The FHEO provides support for protected classes through the fair housing complaint process.

Which of these statements accurately describes finance- and housing-related legislation?

The Fair Housing Act of 1968 prohibited discrimination in the sale, rental, and financing of housing based on race, color, religion, or national origin.

A client terminates a listing agreement before its expiration date. What happens now?

The client may owe a commission anyway.

Agency may be legally terminated in which of the following ways?

The principal broker becomes incapacitated.

Which of the following actions would result in the legal termination of an agency agreement?

The term specified in the agency agreement expired.

When Delaware real estate licensees engage in common law agency agreements, to whom must the relationship be disclosed?

The unrepresented parties

Which of the following is a true statement regarding common law agency relationships in Delaware?

They're only allowed for one- to four-family properties when they're established in writing, and only with brokerages that exclusively practice single agency.

What is the Title VIII by the Fair Housing Amendments Act?

Title VIII was amended in 1988 (effective March 12, 1989). It was an act added to protect families with children (and others covered under "familial status") and individuals with disabilities as federally protected classes. Until then, a landlord could refuse to rent to a pregnant woman, restrict families with children to downstairs units in an apartment building, or even evict a female renter who became pregnant.

A common law agent can only represent a client. t/f

True

A customer could be the other party in the transaction, the person whom you don't represent. t/f

True

Disclosure to all unrepresented parties is required, regardless of the transaction type.

True

Housing providers are required to allow a person with disabilities to make reasonable modifications to a structure if it allows the person to enjoy the housing and its related facilities. T/F

True

In common law relationships, a real estate licensee works with customers, but doesn't represent them. t/f

True

The common law agency disclosure must be provided at the first substantive contact.

True

The common law agency disclosure must include specific wording.

True

Advertising housing specifically to couples with no children. Violation or not?

Violation

Charging higher monthly rent to a divorced single woman who's also pregnant. Violation or not?

Violation

Increasing the rent and security deposit for a family with seven children. Violation or not?

Violation

Telling a family that a property has already sold because licensee felt they wouldn't fit in with the neighborhood's ethnic make-up. Violation or not?

Violation

Today, just a year later, the condo is back on the market with another listing agent. The Radcliffs are renewing their vows and have decided to celebrate their new commitment to one another with a new home. You're working exclusively with a buyer client who's also in love (with the condo), but not with the price. You reassure your buyer that there's room to negotiate. You tell him the property is paid off and the sellers are more concerned with selling fast than making a profit. Which answer identifies whether you breached your duties to the Radcliffs?

Yes. You broke the sellers' confidentiality. Confidentiality doesn't end when the relationship does and other relationships don't supersede this one. The Radcliffs could take action against you if they perceive your breach of confidentiality was detrimental to them.

Someone who acts on behalf of someone else

agent

A building manager refused to grant an exception to a resident who suffered from a physical disability and asked for a reserved parking space closer to his unit for easier access. Is this a violation, and if so, what type? a. Does not violate fair housing b. Violates animal rights c. Violates fair housing d. Violates HOA rules

c. Violates fair housing

Someone who has agency representation with the real estate licensee

client

Although Delaware licensees are statutory agents by default, they can also engage in

common law agency agreements as long as the relationship is properly disclosed at first substantive contact to all unrepresented parties. Only brokerages that exclusively practice single agency can engage in common law agency agreements for one- to four- family properties, and the relationship must be established in writing.

Someone who uses or purchases a product or service

consumer

Someone who's working with a real estate licensee, but who isn't represented by him

customer

Cara knows sound travels easily in her buildings, so she encourages anyone with kids to rent a ground floor unit. This is discrimination based on

familial status

In 1988, the Fair Housing Amendments Act extended the protection to cover

familial status and disability. The Housing for Older Persons Act of 1995 provided exceptions for housing designed just for seniors.

Someone who's in a position of trust and loyalty

fiduciary

Coverage under the Fair Housing Act include: Housing operated by religious organizations and private clubs that

limit occupancy to members

Someone who represents neither party in the transaction

non-agent

Someone who's a party to a transaction, and the person for whom the agent acts

principal

The Civil Rights Act of 1866 was the first step in reducing discrimination based on

race and color

The Fair Housing Act of 1968 prohibited discrimination based on

race, color, national origin, and religion. The Housing and Community Development Act added sex to the list of protected classes.

The Housing and Community Development Act of 1974 added which protected class to federal fair housing law?

sex

To avoid visitors tramping in at odd hours of the night, she only rents to single men if they are Christian. This is two-fold discrimination, based on ___ since it only applies to men, and based on ____ since she is showing a preference for Christians.

sex .... religion

Limited agent is

when you offer limited services

Special agent is

when you represent a client in a real estate transaction

Non agent is when

where you don't provide representation, but merely transactional assistance.

Federal laws define a person with a disability as

"Any person who has a physical or mental impairment that substantially limits one or more major life activities; has a record of such impairment; or is regarded as having such an impairment"

Coverage under the Fair Housing Act include: Owner-occupied buildings with no more than four units

"Mrs. Murphy" is the hypothetical elderly widow who has converted a portion of her home into a rental apartment to supplement her limited income. Note that this exemption does not apply to rental advertising. "Mrs. Murphy" cannot run a discriminatory advertisement indicating, for example, that a certain religious group is not welcome to rent her apartment or room. Also, this exemption does not apply when a real estate agent is representing the property owner, as the law presumes agents are professionally trained and aware that housing discrimination is against the law.

Cara isn't the only person discriminating. Recently in Irvington, NY, there was a similar case. The rental complex consistently discriminated against people of color. They refused to show them apartments, told them units were not available when they really were, and quoted different terms based on race. What was the penalty for these actions?

$60,000 in payments to defendants, and $32,000 civil penalty