1.19 Professional Practices: Fair Housing, Disclosures, and Ethics (Vocabulary Flashcards)

Vocabulary-style flashcards covering fair housing laws, exemptions, disclosures, inspections, environmental issues, and ethical standards.

Fair Housing Act (Title VIII)

Prohibits discrimination in selling or leasing housing based on race, color, religion, or national origin; includes certain exemptions and enforcement provisions.

Civil Rights Act of 1866

Prohibits discrimination in the sale or lease of real estate based on race.

Executive Order 11063

Prohibits race discrimination in FHA- or VA-backed housing loans.

Steering

Directing buyers toward or away from neighborhoods based on protected characteristics; illegal under fair housing laws.

Redlining

Denying or limiting financial services in certain areas based on protected status or location.

Blockbusting

Inducing homeowners to sell by suggesting protected classes will move into the area and lower property values.

Advertising discrimination

Using discriminatory language or imagery in housing advertising; prohibited.

Jones v. Mayer

Supreme Court ruling that discrimination in selling or renting residential housing based on race is illegal.

Equal Opportunity in Housing poster

Brokerage posters affirming compliance with fair housing laws; failing to display can be treated as discriminatory.

Fair Housing Amendments Act of 1988

Expanded protections to include disability and familial status and added accessibility provisions.

Exemptions to the Fair Housing Act

Certain housing transactions exempt from FHA enforcement, such as sale/lease of a single-family home without a broker, owner-occupied 1–4 unit buildings, private clubs, and religious organization facilities leased to members.

Exemption: single-family home without broker

Allows sale or lease of a single-family home without a broker or discriminatory advertising under specified conditions.

Exemption: 1–4 unit owner-occupied buildings

Discriminatory practices may be exempt if the building is owner-occupied and has 1–4 units.

Exemption: private clubs facilities

Facilities owned by private clubs leased to members may be exempt from certain fair housing rules.

Exemption: religious organization facilities

Facilities owned by religious organizations leased to members may be exempt in certain situations.

Equal Credit Opportunity Act (ECOA)

Lenders must be fair and impartial in loan qualifying and may not discriminate based on protected characteristics; requires reasons for credit denial.

Home Mortgage Disclosure Act (HMDA)

Lenders must report loan location data and prohibit redlining; facilitates monitoring of lending practices.

Americans with Disabilities Act (ADA)

Prohibits discrimination against persons with disabilities in public accommodations, employment, transportation, and other services; applies to many employers and facilities.

ADA Title I

Employment discrimination protections; enforced alongside ECOA requirements.

ADA Title II

Prohibits discrimination by state and local governments in their services.

ADA Title III

Public accommodations and commercial facilities cannot discriminate in access or use.

ADA Title IV

Telecommunications accessibility requirements for individuals with disabilities.

ADA Title V

Miscellaneous provisions related to ADA and other laws; coordination with other regulations.

Lead-based paint disclosure

If a property was built before 1978, sellers must disclose potential lead hazards using the required form.

Mold disclosure

Disclose the presence of mold when present in a property.

Asbestos disclosure

Disclose asbestos hazards; removal by qualified professionals to prevent contamination.

Carbon monoxide detectors

Install and maintain CO detectors; test for CO in relevant properties.

Radon disclosure

Disclose radon presence and test for radon as part of property disclosures.

Urea formaldehyde disclosure

Disclose potential hazards from urea-formaldehyde in insulation or building products.

Underground storage tanks (UST)

Disclose presence of USTs and assess associated environmental risks.

Clean Air Act

Regulates nationwide air pollution and sets pollutant-emission standards.

Clean Water Act

Sets standards for controlling water pollution in navigable waters and connected waters.

Safe Drinking Water Act

Regulates public drinking water supplies, requires testing and disclosure of water sources.

Brownfields Law

Addresses redevelopment of abandoned or underused contaminated sites; provides incentives and protections.

Environmental Protection Agency (EPA)

Federal agency coordinating environmental research, funding, monitoring, standards, and enforcement.

Right of rescission

Buyer may rescind the contract and reclaim deposit if seller fails to disclose known issues; right persists until closing or occupancy.

Seller’s Disclosure Form

Seller discloses known property defects; buyer acknowledges receipt; non-disclosure can lead to remedies or rescission.

Material facts

Facts that affect a property's value or decision to contract; material stigmas are generally not considered material facts.

Environmental issue disclosures and remediation

Licensees must disclose hazards and may rely on experts to address lead, mold, asbestos, CO, radon, and other hazards.

Home inspections

Assess property condition and potential environmental hazards; identify maintenance needs.

Environmental inspections and audits

Site assessments and environmental impact statements for projects; can affect permitting.

Homeowners’ Associations disclosures

Disclose HOA membership, dues, restrictions, and provide required HOA documents.

Code of Ethics (NAR)

National Association of Realtors’ ethical guidelines governing practice and fiduciary duties.

Duties to clients (ethics)

Fiduciary duties, honesty, confidentiality, disclosure of material facts, and competent handling of transactions.

Disclosures in advertising

Ads must comply with federal, state, and ethical disclosure requirements and avoid misleading claims.

Co-brokerage practices

Ethical standards for cooperation between brokers and fair handling of relationships and compensation.