Professional Practices

Chapter 20

Real estate trade associations promote a code of ethics primarily to establish

high standards of practice for all facets of the business.

A new condominium is only accepting offers for their units from people who are 18-25. Are they in violation of the law?

Yes, this is considered a violation of fair housing laws, as they are discriminating based on age.

John Dunbar hires Betty Jihad to sell his house, with the condition that he will not be the first one in the neighborhood to sell to members of a certain ethnic group. What should Betty do about this condition?

Inform Dunbar that the condition is illegal and that she cannot comply with it.

Which of the following actions does Title VIII prohibit?

Advertising a property as available to individuals of a particular race.

What added handicapped persons and families with children as a protected class?

Fair Housing Amendments of 1988.

Your client is trying to sell one of her 3 single family houses. She tells you that she would prefer a family purchase the home, as it is a family friendly residence. Knowing what you know regarding fair housing laws, if you follow your client's whishes are you violating the law?

No, because people who own no more than three single family houses and are trying to rent or sell them, are exempt from fair housing laws regarding familial status discrimination.

What does federal legislation primarily focus on?

anti-discrimination laws and fair trade practices

In an effort to prevent a Hispanic person from renting in a particular neighborhood, you tell him that there is nothing available in the neighborhood, despite the fact that there are three rentals available. Are you violating any laws by concealing the fact that the properties are available.

Yes, this is considered discriminatory misrepresentation.

Title VIII (Fair Housing Act) prohibits discrimination in housing based on all of the following, except;

familial status

Which of the following is most accurate regarding fair housing?

the act does not pre-empt local zoning laws

An agent refuses to show an MLS publication to certain parties. What is this this an example of?

providing unequal services.

Under federal fair housing laws, the owner of a ten-unit apartment building may legally

require families without children to pay the same security deposit that families with children must pay.

An agent describes the area surrounding the house for sale as less than desirable for people of a particular race. What is this an example of?

blockbusting

A home seller tells the listing agent that he will not consider any offers from minority buyers. A cooperating broker wants to show the home to a minority buyer, but learns from the listing agent of the seller's instructions. The cooperating broker then informs the buyer that he cannot show that home to him. The buyer subsequently asks to be shown only houses that are in minority neighborhoods. Which parties in this scenario are probably liable for violating fair housing laws?

The seller, the listing agent, and the cooperating broker.

A broker signs a listing agreement to sell a home for $100,000. A Jamaican couple are interested in the house and ask the agent the price. The agent states the price as $110,000. According to the fair housing laws, such an action is

illegal, because the agent changed the terms of the sale to discourage this particular couple.

An agent places an add in the paper that suggests that only single couples of a certain ethnic identity live in a specific neighborhood and therefore are desirable for the house that is for sale. What is this an example of?

discriminatory advertising

Jonathan is a real estate agent. One of his clients own 5 single family homes and is trying to sell one of them. He wants Jonathan to find him a buyer that has a family, as this type of person is the only type of person he will accept an offer from. What is true regarding this scenario?

Jonathan's client's request is in violation of fair housing laws.

The Equal Credit Opportunity Act and the Home Mortgage Disclosure Act were enacted in the mortgage financing field with what goal in mind?

promote equal opportunity in housing.

The original fair housing statute prohibits discrimination in housing based on?

race

All of the following are examples of exemptions under The Fair Housing Act, except;

facilities owned by religious organizations even if membership requirements are considered discriminatory.

What is the significance of the Jones v. Mayer Supreme Court decision?

It provides that anyone seeking to buy or rent a residential property who feels victimized by racial discrimination may take legal action under the 1866 Civil Rights Act.

In which of the following scenarios is it legal and not considered discriminatory to prohibit people of a certain age?

in a retirement community if all residents are over the age of 62

An agent describes the neighborhood where the buyers are looking as one that will not be increasing in value due to the closing of the mall and indicates that maybe they should look elsewhere. What is this an example of?

steering

What does federal legislation primarily focus on?

anti-discrimination laws and fair trade practices

If one is renting a residential property and feels victimized by discrimination based on race, under what law can one seek legal recourse?

Civil Rights Act of 1866.

You are helping a buyer purchase a property in a neighborhood that is known to be a little bit difficult. You have had issues with buyers before not being able to receive financing because of the location of the property. You send the buyer to a loan originator who, not surprisingly, denies the buyer's application. What does this pattern show with regards to the behavior of the financing companies?

They are redlining

Title VIII of the Civil Rights Act of 1968 applies to the sale of

privately owned single-family residences listed with a broker.