Unit 7

Florida Uniform Land Sales Practices Act

Chapter 498 F.S. is the Florida Uniform Land Sales Practices Act which provides for the regulation and sale of subdivision property. The term subdivided lands pertains to land divided into 50 or more plots (usually lots). The purpose of the law is to provide prospective buyers with full information about the property. The buyer has the right to a full property report. Under this law, the purchaser has the right to cancel the purchase of a contract within 7 days.

Florida Laws

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 supercede. Florida Americans with Disabilities Accessibility Implementation Act Also similar to Federal law, the Federal Americans with Disability Act takes precedence. Florida Residential Landlord and Tenant Act The purpose of the Landlord and Tenant Act is to provide equal protection under the law for both landlords and tenants. Specifically, the law deals with security deposits and advance rent payments. An advance rent or security deposit received by a broker or owner must be handled in one of three ways. Money is placed in a non-interest bearing account and not commingled with other funds. 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. 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. 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. The landlord is required to keep the premises in good condition during the occupancy including: maintaining the unit in a condition that meets (or exceeds) all building, housing and health codes in the community, providing insect and rodent control, providing for garbage storage and pickup, providing heat and running water. The tenant must: maintain the unit in good condition, meeting building, housing and health codes, keep plumbing in a clean and sanitary condition, use care with equipment such as heating, air conditioning, electrical and plumbing equipment, refrain from disturbing other tenants. The landlord maintains the ability to enter the premises when necessary to make repairs, to show the property, or to supply services, as long as the entry is reasonable and proper. Emergency situations require that the landlord be able to enter to protect the property. In the event of an extended absence by the tenant and the rent is current, the landlord may not enter the property if the tenant notifies the landlord of the absence, except for emergencies. The tenant is expected to vacate the premises at the time indicated by the rental agreement. 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. 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. Eviction requirements: Notification must be given to tenant in writing demanding possession of premises. If tenant does not surrender possession three days after notification, landlord must file a complaint for eviction. Tenant is allowed five days to file a reply. If tenant stays without answering, the landlord must obtain a final judgment from the court. 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. After the execution of the writ of possession, landlord may remove personal property from the premises.

The Housing and Development Act of 1974

The law added gender by inserting the protected class of "sex" to the wording of the 1968 Civil Rights Act. By the end of that year the protected classes were race, color, religion, national origin and sex.

Civil Rights Act of 1964

This act was passed shortly after the death of President John F. Kennedy and was signed by President Lyndon Johnson as part of the civil rights movement. The 1964 Civil Rights specifically: gave the federal government the right to end segregation in the South, prohibited segregation in public places (a public place was anywhere which received any form of federal [tax] funding), created an Equal Employment Commission, determined that federal funding would not be given to segregated schools, determined that any business which wanted federal business had to have a pro-civil rights charter. Specifically for housing, the law stated that all federally-funded housing must be integrated.

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

The Civil Rights Act of 1964

forbids discrimination in federally subsidized housing.

Americans with Disabilities 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 ready for occupancy 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. If a building with four or more units has no elevators and will be ready for occupancy after March 13,1991. These standards apply only to ground floor units.

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 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.

Handicap Guidelines under the Civil Rights Act of 1988

If you or someone associated with you has a disability, the landlord may not: 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 tenants. 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. 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. Refuse to make reasonable accommodations in rules, policies, practices or service if necessary to the handicapped 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).

Important Fair Housing Legislation

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 Civil Rights Act of 1964: forbids discrimination in federally subsidized housing. 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. Jones v. Mayer 1968: Supreme Court Case which prohibits racial discrimination in any real estate transaction (residential or commercial) 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

Civil Rights Act of 1968 (cont'd)

In addition to those mentioned above, the following acts in financing are also illegal when the decisions are based on race, color, national origin or religion. Refusing to make a mortgage loan Refusing to provide information regarding loans Imposing different terms or conditions on a loan Discriminating in appraising property Refusing to purchase a loan Setting different terms or conditions for purchasing a loan. Certain specific acts are also forbidden. 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. 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. Redlining This is the practice by some lenders to refuse to lend 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.

Equal Housing Opportunity Poster

Since 1972, brokers and lenders have been required to display the Equal Housing Opportunity Poster in offices, model homes, and lending offices. The poster must carry the equal housing logo and must include the words. "We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation." 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.

Groups not Covered by Federal Fair Housing

Some groups are not covered by the Federal Fair Housing protected classes. These are age, marital status, occupation, or dependence on public assistance. Housing that is covered by Federal Fair Housing: All housing except for the housing stated in the exceptions of the Federal Fair Housing Act of 1968 and 1988 are covered in the law. As a general rule, no discrimination in housing is allowed in the sale, rental, lease or financing of housing in the protected classes of race, religion, color, national origin, sex, handicap or familial status. This includes housing that is single family and multi-family.

Jones v. Mayer 1968:

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

The Civil Rights Act of 1968

This law specifically prohibits discrimination in the sale, lease, or rental of real property. Also prohibited is discriminatory advertising related to these activities or any financing or brokerage service. It created the protected classes of race (already in the Civil Rights act of 1866), color, religion, and national origin. The law says: It is illegal to discriminate against any person in the terms, conditions, or privileges of sale or rental of a dwelling, or in the provision of services or facilities in connection therewith, because of race, color, religion and national origin. There are 4 exceptions to the law: 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. 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 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. 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: discriminatory advertising has been used. the services of a real estate broker were used (either in renting, leasing or selling) Note: remember that while there are some exceptions to this law, that there is NEVER any exception for RACIAL discrimination. Prohibited Acts: Refusing to sell, rent or negotiate with any person; Changing terms, conditions or service for different individuals as a means of discrimination; Stating or advertising that the property is restricted; Telling persons that a property is not for sale or rent when it is; Giving different terms for loans to buy or repair or denying a loan altogether; Denying membership in any multiple listing services (MLS) or any broker's organization. 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. Please Note: The law includes mortgage bankers, mortgage brokers and lenders as well as real estate professionals. No one can discriminate unless they meet the exemptions on the previous screen.

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 Civil Rights Act of 1988

Congress determined that though the intent of the 1968 Civil Rights Act was to prohibit segregation in housing, it had only been partially effective. Congress passed the Civil Rights Act of 1988 which added more protected classes to the 1968 Law and gave greater punishments to those who broke the law. The protected classes of handicap and familial status were added in 1988. The seven protected classes became race, color, religion, national origin, sex, handicap and familial status. Handicap is defined as a physical or mental impairment that substantially limits one or more of major life activities (walking, seeing, hearing, learning, and working) or having a record of such an impairment, or being regarded as having such an impairment. Familial Status is defined as anyone who has a child under 18, who has temporary custody of a child under 18, is seeking custody of a child under 18 or is pregnant. This means a child (or children) under the age of 18. It means that the sign "No children allowed." is a violation of the Federal Fair Housing Law. Remember, that as of 1988, there are Seven Protected Classes: Race Religion Color National Origin Sex Handicap Familial Status Age, marital status, or sexual preference, are not protected classes under Federal Fair Housing!

Discriminatory Advertising

Discriminatory advertising is advertising in any media with the purpose of discriminating for or against a certain group of the protected classes. The advertisement implies acceptance (or denial) of certain groups. For an example, an advertisement for rent only in a Spanish-speaking neighborhood and not in general newspapers may presume that the broker is promoting Spanish-speaking housing. Ads that use phrases such as "women-only", "females-only" and "no children" are clearly discriminatory and illegal. Ads which want "Asians Only" are clearly discriminatory. Even directions such as near "St. Paul's Catholic Church" can imply that Catholics-only need apply. Anyone who uses discriminatory advertisements is in violation of the Federal Fair Housing Acts.

The Civil Rights Act of 1866

Passed in the year after the Civil War, this law said that: All citizens shall have the same rights to inherit, buy, sell, Or lease all real and personal property. This law was largely ignored until the court case of Jones v. Mayer which was heard by the Supreme Court in 1968. The buyer Jones sued the builder Mayer in a new home case in St. Louis which had an ordinance forbidding black housing ownership in the new area. The Supreme Court ruled that because of the Civil Rights Act of 1866, discrimination based on race was prohibited. This statute has no time limitation: racial discrimination in housing is prohibited forever. Racial Discrimination is NEVER allowed in any type of housing, whether selling, leasing or renting because of the Civil Rights Act of 1866.

Enforcement of the Fair Housing Laws

The person making the complaint may make a complaint to either the Federal District Court or the Department of Housing and Urban Development (HUD). Department of Housing and Urban Development will: Refer it to a Federal District Court 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. The Federal Civil Penalties of 1990 requires HUD to make inflation adjustments based on the Consumer Price Index to these penalties when necessary. Complaints brought under the Civil Rights Act of 1866 must be taken directly to Federal Court.

The Role of the Broker and Sales Associate

The role of a real estate broker or sales associate: Real estate licensees should be knowledgeable of all Fair Housing Laws. Real estate licensees should never discuss the race, color, religion, national origin, familial status or handicap of the potential buyer, renter, seller or tenant. If the owner of a property asks a licensee to take a listing with the requirement of violating the Federal Fair Housing Act, the licensee should refuse the listing. The broker is responsible for the actions of his sales associates so he must supervise all his licensees to prevent discriminatory practices.

Housing for Older Adults

While the sign "Children not accepted." is generally illegal, there are some exceptions. Housing for older adults is exempt from the familial status protection section of the Federal Fair Housing Act of 1988 if: The building is occupied only by those 62 years or older The building is designed for occupancy by older persons. The building 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) This means that retirement communities who have only older adults may be exempt from Federal Fair Housing if they follow the exceptions listed above.

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.