MRE_Unit3
Upon receiving a complaint, HUD initiates an investigation and makes a determination to bring charges or dismiss the complaint within A) 100 days of the filing of the complaint. B) 120 days of the filing of the complaint. C) 30 days of the filing of the complaint. D) 180 days of the filing of the complaint.
A) The answer is 100 days of the filing of the complaint. Upon receiving a complaint, HUD initiates an investigation and makes a determination to bring charges or dismiss the complaint within 100 days of the filing of the complaint.
The Supreme Court decision that ended the separate but equal doctrine of legalized racial segregation was A) Brown v. Board of Education. B) Plessy v. Ferguson. C) the Civil Rights Act of 1866. D) the Civil Rights Act of 1968.
A) The answer is Brown v. Board of Education. The separate but equal doctrine of legalized racial segregation was ended by the U.S. Supreme Court's 1954 decision in Brown v. Board of Education.
Real estate professionals must scrutinize their practices and be particularly careful NOT to fall victim to A) clients or customers who expect professionals to discriminate. B) local city or county employees who lead them into discriminatory practices. C) scams by ""advisors"" that would lead them into discriminatory practices. D) other real estate brokers who lead them into discriminatory practices.
A) The answer is clients or customers who expect to discriminate. Real estate professionals must scrutinize their practices and be particularly careful not to fall victim to clients or customers who intentionally expect to discriminate. They must also reject illegal practices of other real estate professionals based on "the way we've always done things," officials who expect a pattern of discrimination, and schemes that are too good to be true.
Housing that qualifies for exemption from familial status provisions A) includes a restriction that 80% of the units be occupied by persons 55 or older. B) is not permitted under the federal Fair Housing Act. C) is permitted for owner-occupied buildings with four or more units. D) includes housing intended for persons 50 or older.
A) The answer is includes a restriction that 80% of the units be occupied by persons aged 55 or older. The Fair Housing Act allows for two exemptions to familial status protection in housing for older persons. One permissible exemption is for housing in which 80% of the units are occupied by persons 55 years of age or older.
Why is the Civil Rights Act of 1866 unique? A) It provides no exceptions that would permit racial discrimination. B) It contains ""choose your neighbor"" provisions. C) It adds welfare recipients as a protected class. D) It has been broadened to protect the aged.
A) The answer is it provides no exceptions that would permit racial discrimination. Unlike other exemptions permitted under the federal Fair Housing Act of 1968, the Civil Rights Act of 1866 allows no exceptions that would permit discrimination on the basis of race.
A lender's refusal to lend money to potential homeowners attempting to purchase properties located in predominantly Latino neighborhoods is known as A) redlining. B) steering. C) prequalifying. D) blockbusting.
A) The answer is redlining. Failure to lend or to insure in areas largely populated by a protected group is a violation of the federal Fair Housing Act of 1968. It is redlining.
Advertising property only in a Korean-language newspaper A) tends to discriminate against non-Koreans. B) is the ideal method of targeting Asian clients. C) could be a good business practice. D) is not illegal.
A) The answer is tends to discriminate against non-Koreans. Advertising property only in a Korean-language newspaper tends to discriminate against non-Koreans.
The legal framework that preserves the federal constitutional rights of citizens, including those that would be thwarted by discriminatory practices, has been created and protected by A) the U.S. Congress and U.S. Supreme Court. B) state legislatures. C) measures passed by the public in general elections. D) the actions of local jurisdictions, acting under the authority provided to the states.
A) The answer is the U.S. Congress and U.S. Supreme Court. The legal framework that preserves the federal constitutional rights of citizens, including those that would be thwarted by discriminatory practices, has been created and protected by the U.S. Congress and U.S. Supreme Court. Various presidential orders have also bolstered these rights.
Fair Housing Terms: Law that requires accessibility to employment, goods, and services for individuals with disabilities
ADA
A discrimination suit may be filed in federal court by A) the Federal Housing Administration. B) a person aggrieved by racial discrimination. C) the state or county nondiscrimination officer. D) the Department of Housing and Urban Development.
B) The answer is a person aggrieved by racial discrimination. A person aggrieved by racial discrimination may file suit under the Civil Rights Act of 1866 directly to federal courts.
Complying with the letter of the law A) is not as important as performing in what the real estate professional considers the best interest of a client. B) may not be enough; real estate professionals might perform legally yet not ethically. C) should be adequate for the real estate professionals to avoid violating fair housing laws. D) is all that is necessary as far as the National Association of REALTORS® is concerned.
B) The answer is may not be enough; real estate professionals might perform legally yet not ethically. Complying with the letter of the law may not be enough; real estate professionals might perform legally yet not ethically.
The Civil Rights Act of 1866 prohibits any limitation of property rights based on A) religion. B) race. C) sex. D) handicap.
B) The answer is race. The federal government's effort to guarantee equal housing opportunities to all U.S. citizens began with the passage of the Civil Rights Act of 1866. This law prohibits any discrimination based on race.
All of the following would be permitted under the federal Fair Housing Act EXCEPT A) a Catholic convent refusing to furnish housing for a Jewish man. B) the owner of a 20-unit residential apartment building renting to men only. C) an expensive club in New York renting rooms only to members who are graduates of a particular university. D) an owner refusing to rent the other side of the duplex in which she lives to a family with children.
B) The answer is the owner of a 20-unit residential apartment building renting to men only. Sex is a protected category under the federal Fair Housing Act but the owner of the building doesn't qualify for any exception to the law. Even if the owner lives in one of the units, doesn't use a broker, and does not advertise discriminatorily, the property is not an exception to the law because it has more than four units.
A real estate salesperson does not show non-Asian clients any properties in traditionally Asian neighborhoods. The salesperson bases this practice on the need to preserve the valuable, cultural integrity of Asian immigrant communities. Which of the following statements is TRUE regarding the salesperson's policy? A) The policy has the effect, but not the intent, of steering. B) The policy is steering and violates fair housing laws, regardless of the salesperson's motivation. C) The salesperson is not attempting to restrict the rights of any single minority group; therefore, the practice does not constitute steering. D) The policy is steering, but it does not violate the fair housing laws because the salesperson is motivated by cultural preservation, not by exclusion or discrimination.
B) The answer is the policy is steering and violates fair housing laws, regardless of the salesperson's motivation. It is steering regardless of motivation.
Prohibited Activities: Encouraging someone to sell a home by claiming their property value will go down when a member of a protected class moves next door
Blockbusting
Term for: The U.S. Supreme Court did eventually issue decisions that rejected racial discrimination. In 1954, Plessy was overturned by the Court's decision, separate schools for black and white students were inherently unconstitutional,
Brown v. Board of Education
For purposes of the Fair Housing Act, a family can consist of A) only adults, if the dwelling excludes children. B) persons 55 years of age or older, provided they have children who live elsewhere. C) a single individual. D) two or more individuals, as long as one of them is under the age of 18.
C) The answer is a single individual. For purposes of the Fair Housing Act, a family can be as small as a single individual. Familial status is defined as one or more individuals under age 18 living with a parent or guardian. Housing cannot be limited to adults only, although housing for persons 55 years of age or older can be so designated.
A real estate professional said to a homeowner, ""I hear they're moving in. There goes the neighborhood! Better put your house on the market before values drop!"" This is an example of what illegal practice? A) Steering B) Redlining C) Blockbusting D) Fraudulent advertising
C) The answer is blockbusting. Such statements, made by a person in real estate brokerage, constitute blockbusting—usually an attempt to get listings by frightening owners into selling by encouraging the belief that a member of a protected class is moving into the neighborhood. To do this for financial gain is a violation of the federal Fair Housing Act.
Failure of the real estate professional to comply with fair housing laws is A) a civil violation, which must be pursued in court by the victim. B) only a violation of real estate licensing law in most states. C) both a civil and a criminal violation and grounds for disciplinary action. D) a criminal violation but not grounds for disciplinary action against the real estate professional.
C) The answer is both a civil and a criminal violation and grounds for disciplinary action. Failure of the real estate professional to comply with fair housing laws is both a civil and a criminal violation and constitutes grounds for disciplinary action against a real estate professional.
The civil rights laws that affect the real estate industry help ensure that A) communities are able to attract developers to build and offer homes for sale. B) community revenues are enhanced through greater home sales. C) everyone has the opportunity to live wherever they can afford to live. D) home sellers report on the reasons for rejecting any offers.
C) The answer is everyone has the opportunity to live wherever they can afford to live. The civil rights laws that affect the real estate industry help ensure that everyone has the opportunity to live wherever they can afford to live.
A broker listed a house for $247,900. A member of a racial minority group saw the house and was interested in it. When the prospective buyer asked the broker the price of the house, the broker said it was listed for $253,000 and that the seller was very firm on the price. Under the federal Fair Housing Act, such a statement is A) legal because the law requires only that the buyer be given the opportunity to buy the house. B) illegal because the difference in the offering price and the quoted price was greater than 10%. C) illegal because the terms of the potential sale were changed for the prospective buyer. D) legal because the representation was made by the broker and not directly by the owner.
C) The answer is illegal because the terms of the potential sale were changed for the prospective buyer. Quoting a different price or terms based on the prospect's membership in a protected group is a blatant violation of the federal Fair Housing Act.
Complaints relating to the Civil Rights Act of 1866 A) are handled by HUD. B) are no longer reviewed in the courts. C) must be taken directly to federal courts. D) are handled by state enforcement agencies.
C) The answer is must be taken directly to federal courts. Complaints under the Civil Rights Act of 1866 are heard in federal courts.
An apartment building owned by a religious organization may be restricted to people of the same religion, provided membership in the organization is not restricted A) on the basis of age or familial status. B) on the basis of any of the classifications specified in the Fair Housing Act. C) on the basis of race, color, or national origin. D) to anyone.
C) The answer is on the basis of race, color, or national origin. Housing owned by a religious organization may be restricted to people of the same religion if membership in the organization is not restricted on the basis of race, color, or national origin.
A broker showing properties to an Asian couple intentionally selects properties exclusively in neighborhoods that she knows have some Asian residents. This action likely constitutes A) perfectly legal activity. B) panic selling. C) steering. D) blockbusting.
C) The answer is steering. Steering occurs when a broker selects property to show based on a protected class characteristic. Blockbusting and panic selling are also violations of fair housing laws but do not match the definition of steering.
A real estate appraiser is A) not subject to the requirements of fair housing laws because all factors must be considered when estimating property value. B) subject to appraisal regulations but not fair housing laws. C) subject to the requirements of fair housing laws. D) not required to comply with fair housing laws, but may do so voluntarily.
C) The answer is subject to the requirements of fair housing laws. The appraiser may consider factors that affect value, but not any of the factors based on identification of an individual or individuals protected by fair housing laws.
A single man with two small children has been told by a real estate professional that homes for sale in a condominium complex are available only to married couples with no children. Which statement is TRUE? A) Because a single-parent family can be disruptive if the parent provides little supervision of the children, the condominium is permitted to discriminate against the family under the principle of rational basis. B) Condominium complexes are exempt from the fair housing laws and can therefore restrict children. C) The man may file a complaint alleging discrimination on the basis of familial status. D) Restrictive covenants in a condominium take precedence over the fair housing laws.
C) The answer is the man may file a complaint alleging discrimination on the basis of familial status. The salesperson and, by implication, the broker and the property owners/principals have violated the prohibition against familial-status discrimination. Anyone in charge of one or more children under age 18 who is denied access because of the children is the victim of discrimination based on familial status.
The landlord's lease prohibits tenants from altering the property in any way. A young woman who uses a wheelchair cannot maneuver over the doorstep into her apartment by herself. In addition, she cannot access the bathroom facilities in her wheelchair. Which of the following is TRUE? A) The landlord is responsible for making all apartments accessible to people with disabilities. B) The landlord should not have rented this apartment to the tenant. C) The tenant is entitled to make the necessary alterations. D) The tenant cannot remedy these conditions because of the terms of the lease.
C) The answer is the tenant is entitled to make the necessary alterations. People with disabilities must be permitted to make reasonable modifications to the premises at their own expense.
Any aggrieved person who believes illegal discrimination has occurred may file a complaint with HUD A) no later than six months after the alleged act. B) within 18 months of the alleged act. C) within one year of the alleged act. D) within two years of the alleged act.
C) The answer is within one year of the alleged act. Any aggrieved person who believes illegal discrimination has occurred may file a complaint with HUD within one year of the alleged act.
Fair Housing Terms: The agency that administers the federal fair housing laws
HUD
Equal Housing Rights Terms: Dwelling that includes any building or part of a building designed for occupancy as a residence by one or more families
Housing
Fair Housing Terms: Law repealing requirement that housing for those 55 and older have special facilities for seniors
Housing for Older Persons Act (HOPA)
Term for: Amended the Fair Housing Act to provide that housing intended for persons aged 55 or older no longer needs to have significant facilities and services designed for the elderly.
Housing for Older Persons Act (HOPA)
The fine for a first violation of the federal Fair Housing Act could be as much as A) $37,500. B) $100,000. C) $65,000. D) $16,000.
D) The answer is $16,000. A fine of not more than $16,000 is possible for a first violation.
The first federal law to prohibit racial discrimination in the provision of housing was the A) Civil Rights Act of 1968. B) U.S. Constitution. C) Bill of Rights. D) Civil Rights Act of 1866.
D) The answer is Civil Rights Act of 1866. The law prohibits discrimination based on race in every property transaction and is still in effect.
A real estate broker who accidentally violates fair housing laws A) should be safe from criminal prosecution because the offense was unintentional. B) is safe from a civil complaint. C) is not subject to disciplinary action from the department of real estate. D) is still subject to prosecution; that the offense was unintentional is no defense.
D) The answer is is still subject to prosecution; that the offense was unintentional is no defense. A real estate broker who accidentally violates fair housing laws is still subject to prosecution; that the offense was unintentional is no defense.
Under the HUD regulations that enforce the Fair Housing Act, advertisements of residential property for sale or rent A) must provide a rationale for any stated preference or limitation. B) cannot be considered discriminatory if they provide a statement of compliance with HUD regulations. C) may not refer to any fair housing law or regulation. D) may not include language indicating a preference or limitation.
D) The answer is may not include language indicating a preference or limitation. HUD permits no exception to this rule, regardless of the subtlety of the language used. Even selective use of media to advertise to a specific audience may have discriminatory impact.
It is illegal for a lending institution to refuse to make a residential real estate loan in a particular area only because of the A) deteriorated condition of the premises. B) applicant not being of legal age. C) questionable economic situation of the applicant. D) physical location of the property.
D) The answer is physical location of the property. Redlining refers to literally drawing a line around particular areas and refusing to make loans in that area, rather than looking at the economic qualifications of the applicant.
Senior housing may be restricted to occupancy by older persons and may A) limit occupancy on the basis of sex. B) also restrict occupancy on the basis of race, color, or national origin. C) refuse occupancy to senior citizens with a disability. D) provide temporary occupancy by younger visitors.
D) The answer is provide temporary occupancy by younger visitors. Senior housing is exempt from familial status protection, although temporary occupancy by younger visitors is typically allowed. Senior housing remains subject to all other provisions of the Fair Housing Act unless another exemption applies.
If a real estate professional is the subject of threats or acts of violence brought about by compliance with the Fair Housing Act, A) a complaint should be made to the state real estate licensing agency. B) there is no provision in the Fair Housing Act for recourse by the real estate professional. C) a civil action may be brought but no criminal action is permitted. D) the perpetrator of the acts is punishable by criminal action.
D) The answer is the perpetrator of the acts is punishable by criminal action. The Fair Housing Act protects owners and real estate professionals who aid or encourage the enjoyment of fair housing rights. Threats, coercion, and intimidation are punishable by criminal action.
Roberta is a real estate licensee representing the buyer. The buyer asks to see homes in a specific neighborhood. Roberta refuses to show any homes in that neighborhood to the buyer and tells the buyer, ""Nobody from your country lives in that neighborhood."" Has Roberta violated any fair housing laws? A) No, she is only looking out for the best interests of her buyer. B) Yes, she is practicing discrimination based on familial status. C) No, she is showing her expertise of neighborhoods in the area. D) Yes, she is practicing discrimination based on national origin.
D) The answer is yes, she is practicing discrimination based on race, color, or national origin. Complying with fair housing laws is not always easy because it requires thoughtful consideration of one's own actions and those of others. Roberta may think she is looking out for her buyer's interests, but she is discriminating based on national origin. Additionally, her buyer asked specifically to see homes in a certain area. Roberta has a duty to comply with this request.
Term for: Federal agency that has established rules and regulations that further interpret the practices affected by federal law; for example, HUD distributes an equal housing opportunity poster.
Department of Housing and Urban Development (HUD)
Equal Housing Rights Terms: Either a physical or mental impairment
Disability
Legal Acts and Actions: Civil Rights Act of 1968
Discrimination in real estate
Term for: result of one's actions, though the intent of those actions may or may not be discriminatory.
Disparate impact (effect)
Term for: intentional action of discrimination
Disparate treatment (intent)
True or False: A real estate professional who violates fair housing laws risks losing the real estate license and being subject to civil and criminal penalties unless the offense was unintentional.
FALSE
True or False: Although the federal Fair Housing Act exempts individual homeowners and certain groups, the Civil Rights Act of 1966 prohibits all racial discrimination without exception and was upheld by the Supreme Court in Jones v. Alfred H. Mayer Company.
FALSE
True or False: Asking rental applicants for citizenship documentation or immigration status papers during the screening process violates the Fair Housing Act.
FALSE
True or False: Complaints brought under the Civil Rights Act of 1866 are taken to the state court of the state in which the violation occurred.
FALSE
True or False: Steering is the act of encouraging people to sell or rent their homes by claiming that the entry of a protected class of people into the neighborhood will have a negative impact on property values.
FALSE
True or False: The 1954 Brown v. Board of Education decision prohibits specific discriminatory practices throughout the real estate industry.
FALSE
True or False: The federal Fair Housing Act is administered by the Department of Housing and Urban Development (HUD).
FALSE
Term for: The federal law that prohibits discrimination in housing based on race, color, religion, sex, disability, familial status, and national origin.
Fair Housing Act
Term for: Expansion of the Fair Housing Act to include families with children and those with physical or mental disabilities.
Fair Housing Amendments Act
Equal Housing Rights Terms: One or more individuals under age 18 living with a parent or guardian
Familial status
Term for: one or more individuals under age 18 living with a parent or guardian, It also includes a woman who is pregnant and anyone who is in the process of assuming custody of a child under age 18. Housing that qualifies for older people is exempt.
Familial status
Prohibited Activities: Channeling homeseekers to particular neighborhoods or discouraging potential buyers from considering some areas
Steering
True or False: Complaints brought under the Civil Rights Act of 1866 are taken to the state court of the state in which the violation occurred.
TRUE
True or False: The U.S. Supreme Court's 1896 decision in Plessy v. Ferguson established the separate but equal doctrine of legalized racial segregation.
TRUE
Fair Housing Terms: A U.S. Supreme Court decision that prohibits all racial discrimination in housing
Jones v. Mayer
Term for: constitutional basis for the Civil Rights Act of 1866 in the 13th Amendment to the U.S. Constitution, which prohibits slavery. The 1866 law prohibits all racial discrimination in the sale or rental of publicly or privately held property, without exception
Jones v. Mayer
Equal Housing Rights Terms: Humiliation, embarrassment, inconvenience, and mental anguish
Noneconomic damages
Prohibited Activities: Making mortgage loans in specific areas for reasons other than the economic qualifications of the applicants
Redlining
Term for: detailed specifications for designing parking spaces, curb ramps, elevators, drinking fountains, toilet facilities, and directional signs to ensure maximum accessibility. Unless a real estate professional is a qualified ADA expert, it is best to advise commercial clients to seek the services of an attorney, an architect, or a consultant who specializes in ADA issues.
The Americans with Disabilities Act Accessibility Guidelines (ADAAG)
Term for: The official who presides over a hearing involving a government agency and someone affected by a decision of that agency. The ALJ hears evidence, including the testimony of witnesses, and renders a decision.
administrative law judge (ALJ)
Fair Housing Terms: Encouraging the sale of property by claiming a protected class of people are moving in and will lower property values
blockbusting
Term for: The illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of persons of a particular race or national origin into the neighborhood., aka panic selling
blockbusting
Term for: A form of alternative dispute resolution in which a conciliator meets with each of the parties separately to help them settle their differences voluntarily, without the formality of a hearing or trial.
conciliation
Fair Housing Terms: A physical or mental impairment
disability
Term for: a physical or mental impairment that substantially limits one or more of a person's major life activities and includes having a record of having such an impairment, or being regarded as having such an impairment, even if one does not exist. Persons who have AIDS are protected by fair housing laws under this classification. The classification does not include current, illegal use of or addiction to a controlled substance, as defined in the Controlled Substances Act.
disability/ handicap
Term for: any building or part of a building designed for occupancy as a residence by one or more families, This includes a single-family house, a condominium, a cooperative, and manufactured or other factory-built housing, as well as vacant land on which any of these structures will be built.
dwelling
Term for: The illegal practice of channeling home seekers to particular areas based on their race, national origin, religion, or other protected classification.
steering
Term for: Act addresses rights of individuals with disabilities in employment and public accommodations.
Americans with Disabilities Act (ADA)
The federal Fair Housing Act does NOT prohibit A) blockbusting. B) discriminatory advertising. C) discriminating on the basis of marital status. D) redlining.
C) The answer is discriminating on the basis of marital status. Marital status is not one of the seven protected classes under the federal Fair Housing Act.
Term for: An act that prohibits racial discrimination in the sale and rental of housing.
Civil Rights Act of 1866
Fair Housing Terms: A law that prohibits discrimination in housing based on race, color, religion, and national origin
Civil Rights Act of 1968
Legal Acts and Actions: Civil Rights Act of 1866
Discrimination based on race
True or False: The National Association of REALTORS® (NAR) is the second largest trade association in the country.
FALSE
Term for: upheld racial segregation in public facilities—the "separate but equal" doctrine
Plessy v. Ferguson
Equal Housing Rights Terms: Physical traits shared by a group of people with a common national origin
Race
True or False: As amended, the federal Fair Housing Act provides federal civil rights protections to families with children and people with physical or mental disabilities.
TRUE
Term for: reasonable accommodations that enable an individual with a disability to perform essential job functions
Title I of ADA
Fair Housing Terms: The presence of one or more persons who are under the age of 18, living with a parent or adult guardian
familial status
Term for: The illegal practice by a lending institution of denying loans or restricting their number for certain areas of a community.
redlining
Term for: injuries one individual inflicts on another
statute of limitations for torts
Fair Housing Terms: Encouraging home seekers to limit their search to particular neighborhoods based on noneconomic factors such as race or religion
steering
Term for: individuals with disabilities have full accessibility to businesses, goods, and public services
Title III of ADA
Term for: As since amended, the Fair Housing Act prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, or disability.
Title VIII of the Civil Rights Act of 1968
Legal Acts and Actions: Jones v. Mayer
Upheld 1866 Act
Term for: landlord ordered the owner of a manufactured housing unit to move from the community because he claimed she violated the no-pets provision of her rental agreement. The landlord refused to make a reasonable accommodation for the owner's emotional disability by permitting her to keep a dog. She filed suit under the ADA and Fair Housing Act. The court held that there was no violation of the Fair Housing Act or the ADA. The court said she failed to establish that her mental impairment substantially limited a major life activity and so did not meet the definition of a disability under ADA.
Wells v. State Manufactured Homes