Unit 21: Fair Housing & Ethical Practices

Under the Fair Housing Act, which action is legally permitted?

A) Restricting occupancy in an apartment complex to senior citizens, if qualified and registered as housing for seniors

B) Altering the terms of a loan to discriminate against a member of a minority group

C) Refusing to rent an apartment to an individual because of his physical disability

D) Telling a minority individual that an apartment has been rented when in fact it has not

A) Restricting occupancy in an apartment complex to senior citizens, if qualified and registered as housing for seniors

Encouraging people to sell or rent their homes by claiming that entry of a protected class of people into the neighborhood will have a negative impact on property values constitutes:

A) steering.

B) blockbusting.

C) a violation of the ADA.

D) redlining.

B) blockbusting.

The federal Fair Housing Act prohibits discrimination in housing based on:

A) sex.

B) all of these.

C) disability or familial status.

D) race, color, religion, or national origin.

B) all of these.

During a listing presentation, a real estate licensee said to the seller, who owned two residential properties, “I hear a family of those people are moving in, and you’d better put your house on the market before values drop!” Has the licensee violated any fair housing law?

A) Yes, the licensee is guilty of steering.

B) Yes, the licensee is guilty of blockbusting.

C) No because the seller owns fewer than three houses.

D) No because the licensee does not intend to publicly advertise the property.

B) Yes, the licensee is guilty of blockbusting.

A licensee entered into a buyer agency agreement with Japanese man. The licensee showed him only properties where it was obvious that other Japanese people lived. Has the licensee violated any fair housing law?

A) Yes, the licensee is guilty of blockbusting.

B) No because a Japanese buyer would want to live in a Japanese neighborhood.

C) No because as a buyer agent, it is the licensee’s responsibility to make decisions for the buyer.

D) Yes, the licensee is guilty of steering.

D) Yes, the licensee is guilty of steering.

A lender’s refusal to lend money to potential homeowners attempting to purchase properties located in predominantly African-American neighborhoods is called:

A) blockbusting.

B) steering.

C) prequalifying.

D) redlining.

D) redlining.

Which of these is NOT permitted under the federal Fair Housing Act?

A) The owner of a 20-unit residential apartment building rents to white men only.

B) An expensive club in Chicago rents rooms only to members who are graduates of a particular university.

C) A Catholic convent refuses to furnish housing for a Jewish man.

D) An owner refuses to rent the other side of her duplex to a family with children.

A) The owner of a 20-unit residential apartment building rents to white men only.

As an office policy, a sponsoring broker requires that sponsored licensees show prospective buyers from racial or ethnic minority groups only properties that are in certain areas of town where few members of their groups currently live. The sponsoring broker prepares a map illustrating the appropriate neighborhoods for each racial or ethnic group. Through this policy, the sponsoring broker hopes to achieve racial balance in residential housing. Which of these statements is TRUE regarding the sponsoring broker’s policy?

A) Because the effect of the sponsoring broker’s policy is discriminatory, it constitutes illegal steering regardless of his intentions.

B) While the sponsoring broker’s policy may appear to constitute blockbusting, application of the effects test proves its legality.

C) The sponsoring broker’s policy clearly shows the intent to discriminate.

D) While the sponsoring broker’s policy may appear to constitute steering, application of the intent test proves its legality.

A) Because the effect of the sponsoring broker’s policy is discriminatory, it constitutes illegal steering regardless of his intentions.

If a seller refuses to sell her home to a buyer on the basis of that buyer’s race, what law is violated?

A) ADA

B) Fair Steering Act

C) Fair Advertising Act

D) Fair Housing Act

D) Fair Housing Act

A Lithuanian American real estate broker offers a special discount to Lithuanian American clients. This practice is:

A) legal in certain circumstances.

B) legal but ill-advised.

C) an example of steering.

D) illegal.

D) illegal.

Under the Americans with Disabilities Act (ADA), which of these is TRUE?

A) The ADA requires that employers make reasonable accommodations that enable a person with a disability to perform essential job functions.

B) Business and commercial real estate are exempt from the ADA.

C) The provisions of the ADA do not apply to employers with fewer than 50 employees.

D) The ADA does not apply to public buildings.

A) The ADA requires that employers make reasonable accommodations that enable a person with a disability to perform essential job functions.

After a broker takes a listing of a residence, the owners specify that they will not sell their home to any Asian family. The broker should:

A) explain to the owner that the instruction violates federal law and that the broker cannot comply with it.

B) advertise the property exclusively in Asian-language newspapers.

C) abide by the principal’s directions despite the fact that they conflict with the fair housing laws.

D) require that the owner sign a separate legal document stating the additional instruction as an amendment to the listing agreement.

A) explain to the owner that the instruction violates federal law and that the broker cannot comply with it.

Which of these is TRUE pursuant to the Fair Housing Act?

A) A landlord may unilaterally increase her customarily required security deposit if the tenant is disabled.

B) Good intentions are always a defense to allegations of a Fair Housing Act violation.

C) Landlords must make reasonable accommodations to existing policies or practices to permit disabled persons to have equal enjoyment of the premises.

D) Steering is not illegal if it is based on the licensee’s reasonable expectations.

C) Landlords must make reasonable accommodations to existing policies or practices to permit disabled persons to have equal enjoyment of the premises.

A real estate licensee tells a single man with two small children 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) The man may file a complaint alleging discrimination on the basis of familial status.

C) Condominium complexes are exempt from the fair housing laws and can therefore restrict children.

D) Restrictive covenants in a condominium take precedence over the fair housing laws.

B) The man may file a complaint alleging discrimination on the basis of familial status.

The following ad appeared in the newspaper: “For sale: 4 BR brick home; Redwood School District; excellent Elm Street location; next door to St. John’s Church and right on the bus line. Move-in condition; priced to sell.” Which of these statements is TRUE?

A) The ad is appropriate.

B) Fair housing laws do not apply to newspaper advertising.

C) The ad should not mention St. John’s Church.

D) The ad should state that the property is available to families with children.

C) The ad should not mention St. John’s Church.

A landlord rented an apartment to a person with a disability, and the tenant wants to make certain changes to the unit to accommodate her disability. Which of these does NOT constitute a reasonable modification?

A) Widen the doorways

B) Lower the kitchen cabinets

C) Install a dog run for service animals in the lobby

D) Lower the light switches

C) Install a dog run for service animals in the lobby

Which of these is legal?

A) Negotiating with a person with a disability to establish an escrow account for the cost to restore a property after it has been modified

B) Charging a family with children a higher security deposit than those with no children

C) Picturing only white people in a brochure as the “happy residents” in a housing community

D) Refusing to sell a house to a person who has a history of mental illness

A) Negotiating with a person with a disability to establish an escrow account for the cost to restore a property after it has been modified

Which of these is TRUE pursuant to the Illinois Human Rights Act?

A) Tenants can never be held liable for any damages to the premises caused by a service animal.

B) It is not a civil rights violation to discriminate against a person who is blind.

C) It is not a civil rights violation to discriminate against a person who is hearing impaired.

D) It is a civil rights violation to refuse to sell or rent because the prospective buyer or tenant has a service animal.

D) It is a civil rights violation to refuse to sell or rent because the prospective buyer or tenant has a service animal.

When a landlord rented an apartment in his six-unit building to a young couple, he didn’t notice that the woman was pregnant. After the baby was born, the landlord canceled their lease, citing the lease’s no-children clause. Which of these statements is TRUE?

A) The landlord is acting legally under an exemption to the Illinois Human Rights Act.

B) The landlord must give the tenants 60 days in which to find a new apartment.

C) The landlord is violating the Illinois Human Rights Act regarding the exclusion of children.

D) The landlord may refuse to rent to families with children only if he lives in the building.

C) The landlord is violating the Illinois Human Rights Act regarding the exclusion of children.

A woman owns two multiunit apartment buildings: a two-flat on Oak Street and a 12-unit building on Main Street. She lives in an apartment in the Main Street property. Which of her properties, if any, is exempt from the Illinois Human Rights Act?

A) Neither property

B) The Oak Street property only

C) The Main Street property only

D) Both properties

A) Neither property