Chapter 7 - Federal and State Laws Pertaining to Real Estate

An aggrieved party with a Fair Housing violation has how long to file a complaint with the Department of Housing and Urban Development?

1 year

Civil Rights Act of 1968 prohibits the following financing actions

1) Refusing to make a mortgage loan 2) Refusing to provide information regarding loans 3) Imposing different terms or conditions on a loan 4) Discriminating in appraising property 5) Refusing to purchase a loan 6) Setting different terms or conditions for purchasing a loan.

The Federal Fair Housing Act provides that a prima facie case against a broker for discrimination has been established after a complaint has been received because the broker has failed to: 1) display a HUD Equal Opportunity poster. 2) join an affirmative marketing program. 3) join the HUD anti-discriminatory task force. 4) attend mandatory CE classes on fair housing.

1) display a HUD Equal Opportunity poster.

The ______is a federal civil rights law designed to prevent discrimination and enable individuals with disabilities to participate fully in all aspects of society.

ADA. (American Disability Act)

Under the Federal Fair Housing Act, ______________ is not a protected class.

AGE

Housing and Community Development Act of 1974

Added gender (sex) to the protected classes.

Federal Fair Housing Amendments Act of 1988

Added mental or physical handicap and familial status (people with children under 18) to protected classes.

Florida Americans with Disabilities Accessibility Implementation Act

Also similar to Federal law, the Federal Americans with Disability Act takes precedence.

Termination of Rental Agreement by the tenant

If the landlord does not maintain the property, the tenant has a procedure to follow to terminate the agreement. The tenant must give written notice to the landlord citing noncompliance and the intent to vacate if the situation is not corrected. The landlord has 7 days to correct the situation. If the landlord does not remedy the situation in 7 days; the tenant is entitled to terminate the agreement.

Blockbusting (or Panic Peddling)

Is the illegal act of inducing panic selling in a neighborhood for gain by a broker or sales associate. "You'd better sell now, because they are moving in," is a clear violation of the law.

Termination of the Rental Agreement by the landlord:

Landlord must give written notice demanding rent within three days or possession of the property. If rent is not paid in the proper time frame, the landlord must use formal eviction to evict tenant. If possession is given; the landlord must give written notice of the security deposit or advance rent.

Equal Opportunity Poster

Must be displayed by brokers

A garden-style apartment building was completed in 1992. It has two stories, but does not have an elevator. According to the Americans with Disabilities Act, (ADA) which area must meet specifications for handicap accessibility?

Only the first floor

Federal Fair Housing Act of 1968

Prohibits discrimination in housing based on race, color, religion or national origin when selling, buying or leasing residential real estate. It created the protected classes of race (already in the Civil Rights act of 1866), color, religion, and national origin.

Jones v. Mayer 1968

Supreme Court Case which prohibits racial discrimination in any real estate transaction (residential or commercial)

Florida Fair Housing Act

The Florida Fair Housing Act is similar to the Federal Fair Housing Act but where there is a conflict, the federal law will supersede.

Redlining

This is the practice by some lenders to refuse to lend or insure in certain areas because of race, color, national origin or religion, regardless of the ability of an individual person to pay. Lenders actually outlined the area on a map (usually with red marker!) This is forbidden by law.

True or False. Failure to display the Equal Opportunity logo and Poster is considered by the courts as prima facie evidence of discrimination on the part of the broker or lender if the broker faces charges of discrimination.

True

No Collusion

Two or more businesses conspiring to disadvantage a competitor

All fall under the description of "handicapped" under the Fair Housing Laws EXCEPT 1) a sight-impaired person. 2) a person in a wheelchair because of a broken leg. 3) a hearing impaired person. 4) a child with a learning disability.

a person in a wheelchair because of a broken leg.

The Civil Rights Act of 1964

forbids discrimination in federally subsidized housing. 1) gave the federal government the right to end segregation in the South, 2) prohibited segregation in public places (a public place was anywhere which received any form of federal [tax] funding), 3) created an Equal Employment Commission, 4) determined that federal funding would not be given to segregated schools, 5) determined that any business which wanted federal business had to have a pro-civil rights charter.

For real estate brokers who manage properties how should deposits be handled?

it is expected that deposits be handled as set forth in 475 F.S., Escrow management. Upon completion of the rental period the landlord has 15 days to return the deposits unless the landlord wishes to make a claim on the money, then he has 30 days to make a claim after the tenant vacates the property.

Anti Trust

no collusion no price fixing no market allocation

Civil Rights Act of 1866

prohibits racial discrimination in all real estate sales. "All citizens have the same rights to inherit, buy, sell, or lease all real and personal property."

The purpose of the Interstate Land Sales Disclosure Act is to

provide consumer protection.

A buyer requests to be shown homes only in an Asian area of town. In this case the sales associate should

provide the buyer with listings that meet the buyer's criteria and price in all parts of town, then let the buyer decide which homes he wants to be shown.

The illegal practice of directing minorities to areas of the city which are populated by the same race or religion is called

steering.

FL Department of Environmental Protection

to create strong community partnerships to safeguard FL's natural resources to enhance fl ecosystems

Executive Order 11063

No race discrimination involving FHA or VA backed loans

Florida Keys protection Act

To establish land use management system to { protect natural environment of Keys, conserve community character, balanced growth in regard to public facilities and services} To provide affordable housing near employment in the Key To promote diverse and sound economic base To protect rights of property owners regarding real estate To promote coordination among governmental agencies regarding land use activities

FL Environmental land and water management act

To protect natural resources and environment in FL To ensure water management systems to reverse deterioration of water quality and to provide optimum use of limited water resources to facilitate well planned development to protect health and welfare and safety or fl residents

A savings and loan would be violating the Federal Fair Housing Act by denying a loan to Mr. and Mrs. Happy Buyer because

hey want to live in area that is considered by the bank to be declining.

Florida Landlord and Tenant Act - The landlord may enter the dwelling unit when necessary under any of the following circumstances:

(a) With the consent of the tenant; (b) In case of emergency; (c) When the tenant unreasonably withholds consent; or (d) If the tenant is absent from the premises for a period of time equal to one-half the time for periodic rental payments. If the rent is current and the tenant notifies the landlord of an intended absence, then the landlord may enter only with the consent of the tenant or for the protection or preservation of the premises. The landlord shall not abuse the right of access nor use it to harass the tenant.

Exceptions to Civil Rights Act of 1968 (Federal Fair Housing)

1) An owner of no more than three single family dwellings at any one time is exempt. The owner can only use these exemptions once in 24 months. 2) An owner of an apartment building containing up to four units is exempt if the owner occupies one of the units as a personal residence. 3) Religious organizations are exempt with properties owned and operated for the benefit of their members only and not for commercial purposes, provided that membership in the religious organization is not restricted on account of race, color, or national origin. 4) A private club (such as the Elk's Club) which is not open to the public is exempt if the properties that the club does own, provides lodging only for the benefit of the membership, and not for commercial purposes. These exemptions are NOT available if any the following has occurred: 1) discriminatory advertising has been used. 2) the services of a real estate broker were used (either in renting, leasing or selling)

Deposits and Advance Rents: An advance rent or security deposit received by a broker or owner must be handled in one of three ways.

1) Money is placed in a non-interest bearing account and not commingled with other funds. 2) Money is placed in an interest-bearing account with the interest to be paid to the tenant at a rate of 75% of any annualized annual interest or 5% at the option of the landlord. 3) A surety bond is posted in the county to the clerk of the circuit court where the property is located for the total amount of the money given in rents and deposits or $50,000 whichever is less and the tenant is paid 5% interest per year simple interest. This method allows for commingling of funds. 4) The tenant has to be informed where and in what manner the money is being held within 30 days of the contract date, including the bank's name and address, the rate of interest, and the date interest payments will be made. Upon completion of the rental period the landlord has 15 days to return the deposits unless the landlord wishes to make a claim on the money, then he has 30 days to make a claim after the tenant vacates the property.

Eviction requirements:

1) Notification must be given to tenant in writing demanding possession of premises. 2) Notice may be mailed, hand delivered, or tacked to the door of the unit being noticed 3) A three-day notice shall be given for non-payment of rent. If tenant is being evicted for cause, a seven-day notice is delivered. 4) If tenant does not surrender possession three days or seven days after notification, landlord must file a complaint for eviction. 5) Tenant is allowed seven days to file a reply. 6) If tenant stays without answering, the landlord must obtain a final judgment from the court. 7) After obtaining the judgment in favor of the landlord, the sheriff is given a writ to obtain the premises for the landlord 24 hours after posting. 8) After the execution of the writ of possession, landlord may remove personal property from the premises.

Actions by Housing and Urban development when a discriminatory complaint is made

1) Refer it to a Federal District Court 2) Appoint an administrative law judge to hear the case. The administrative law judge has the following options: Issue an injunction to make the party act. Per Section 180.671(a) (1), (2), and (3), the maximum penalty that the Administrative Law Judge may impose upon a respondent who is found to have engaged in a discriminatory housing practice is increased from $11,000 to $16,000, from $32,500 to $37,500, and from $60,000 to $65,000. OR, the aggrieved party, with or without filing a complaint, may file a civil suit in Federal District Court within two years of the act, unless the complaint has been filed with HUD, in which case the period is one year.

Under the disability guidelines of the civil rights act of 1988, landlord may not:

1) Refuse to let a person with a disability make reasonable modification to a dwelling or common use area. If modification is required for tenant use of the facility, the landlord must allow the change; however, the expense is the tenant's. Reasonable changes are permitted, only. The disabled person must agree to restore the property to original condition upon vacating if the improvement will interfere with a future tenant's use. 2) Prohibit the installation of grab bars in the bathroom, lowered kitchen cabinets, and light switches. These items are examples of changes that should be restored to original condition when the lease expires. A wide door opening required for wheelchair access would NOT need to be made narrow because a future tenant could use a wide door opening without inconvenience. 3) Refuse to make reasonable accommodations in rules, policies, practices or service if necessary to the disabled person to use the housing. (For example, a building with a "no pets" policy must allow a visually-impaired tenant to keep a guide dog). 4) More recently Emotional Support animals have been a focus of concern with regard to the Americans with Disabilities Act. Always consult an attorney, if a question remains regarding animals and leasing or sales.

Housing for older adults is exempt from the familial status protection section of the Federal Fair Housing Act of 1988 if:

1) The housing is occupied only by those 62 years or older 2) The housing is designed for occupancy by older persons. 3) The housing is occupied by at least one person 55 years of age or older per unit. (where 80 percent of the units are occupied by individuals 55 or older) 4) This means that retirement communities would be exempt from Federal Fair Housing if they follow the exceptions listed above.

Which would be exempt under the Federal Fair Housing Acts of 1968? 1) An owner of an 8-unit apartment building who lives in one of the units 2) An individual selling a personal residence who does not use a broker or discriminatory advertising 3) A lender who gives home loans as well as commercial loans 4) An Elk's Club who rents rooms in its residence to the public

2) An individual selling a personal residence who does not use a broker or discriminatory advertising

Florida enviromental laws (380, 386)

FL department of environmental protection (DEP) Environmental land and water management Act The big cypress Conservation Act of 1973 Florida Keys Area Protection Act Florida Coastal Management Act Florida Clean Indoor Air Act

INTERSTATE LAND SALES FULL DISCLOSURE ACT

In order to provide consumer protection in interstate land sales, a property report must be given to all prospective buyers 3 business days before a sale contract is signed if the development exceeds 25 lots. The purpose of the Act is to prevent fraudulent or deceptive advertising in the sale or lease of subdivided lands. The contract to purchase may be revoked at the purchaser's option on a lot covered by the act until midnight of the seventh day following the contract. Action to revoke the contract may be brought by the purchaser for 2 years if the property report was not given to the purchaser prior to signing the agreement, and this right must be clearly stated in the agreement. The property report must include, in addition to other information, type of title the buyer will receive, number of homes occupied in the development, distance to nearby communities, recreational facilities, utilities, and soil conditions.

American Disability Act

Passed in 1990, the Americans with Disabilities Act requires access to public transportation, public accommodation and commercial facilities. A disabled person must be given the same treatment as an able-bodied person. The law also addresses access to new construction and renovation of public accommodations and commercial facilities (including real estate offices) after 1991.

Requirements for new buildings included under the act are buildings built after March 13, 1991 with an elevator and four or more units:

Public and common areas must be accessible to persons with disabilities. Doors and hallways must be wide enough to accommodate wheelchairs. All units must have: An accessible route into and through the unit, Accessible light switches, electrical outlets, thermostats, and other environmental controls, Reinforced bathroom walls to allow installation of grab bars at a later time, Kitchen and bathrooms that can be used by people in wheelchairs.

The Civil Rights Act of 1866 prohibits discrimination in real estate transactions based on a consumer's

Race

Florida Residential Landlord and Tenant Ac (83 F.S.)

The purpose of the Landlord and Tenant Act is to provide equal protection under the law for both landlords and tenants. This law deals with non-residential tenancies, residential tenancies, and self service storage. The law describes landlord and tenant obligations as they apply to this act.

Some groups are not covered by the Federal Fair Housing protected classes.

These are age, marital status, and occupation, sexual preference.

Steering

This is directing a buyer to or away from a certain area because of race, color or national origin. Such statements as "You'll be more comfortable with your own kind" or" you don't want to live there, they're not your kind of people," are against the law. Decisions about buying property should be based on financial concerns, rather than race, color, religion or national origin. Even if a buyer wishes to be located in a segregated area, sales associates are cautioned to ensure that they show the buyer all properties which they are qualified to buy, then let them make the decision after seeing what is available to them.

Vacating Premises... Timeframes for notice:

When the tenancy is from year to year, notice not less than 60 days prior to the end of any annual period; When the tenancy is from quarter to quarter, notice not less than 30 days prior to the end of any quarterly period; When the tenancy is from month to month, notice not less than 15 days prior to the end of any monthly period; and When the tenancy is from week to week, notice not less than 7 days prior to the end of any weekly period.

The purpose and intent of _______________ is to incorporate into the law of this state the accessibility requirements of the Americans with Disabilities Act of 1990, and to obtain and maintain United States Department of Justice certification of the Florida Accessibility Code for Building Construction as equivalent to federal standards for accessibility of buildings, structures, and facilities.

he Florida Americans with Disabilities Accessibility Implementation Act

Civil Rights Act of 1968 Prohibits the following

1) Refusing to sell, rent or negotiate with any protected class; 2) Changing terms, conditions or service for different individuals as a means of discrimination; 3) Stating or advertising that the property is restricted; 4) Telling persons that a property is not for sale or rent when it is; 5) Giving different terms for loans to buy or repair or denying a loan altogether; 6) Denying membership in any multiple listing services (MLS) or any broker's organization. 7) All these acts are illegal unless an owner is selling his own property by himself without discriminatory advertising or using the services of the broker.

Under the Federal Fair Housing Act of 1988, which qualifies as a protected class under the definition of familial status?

A family with children 18 and younger