Unit 19 Fair Housing and ethical Practices

Question 1

Which of the following actions is permitted under the Federal Fair Housing Act?
A Advertising property for sale only to a particular ethnic group
B Altering the terms of a loan for a member of a minority group
C Refusing to sell a home to an individual because of a poor credit history
D Telling a wheelchair-bound individual that an available apartment has been rented because the property owner does not want to allow reasonable accommodations by the applicant

Answer 1

C Refusing to sell a home to an individual because of a poor credit history

Question 2

What will happen if there is conflict between the federal and state fair housing legislation?
A The federal law will prevail over the state law.
B The state law will prevail over the federal law.
C The more recent law will prevail.
D The stricter law will prevail.

Answer 2

D The stricter law will prevail.

Question 3

The Civil Rights Act of 1866 is unique because it
A has been broadened to protect the aged.
B adds welfare recipients as a protected class.
C contains “choose your neighbor” provisions.
D provides no exceptions to racial discrimination.

Answer 3

D provides no exceptions to racial discrimination.

Question 4

“They are the first of their kind to move into the neighborhood. Better list with me today before the property values start to drop!” is an example of
A steering.
B blockbusting.
C redlining.
D testing.

Answer 4

B blockbusting.

Question 5

The act of channeling home seekers to a particular area either to maintain or to change the character of the neighborhood is
A blockbusting.
B redlining.
C steering.
D permitted under the Federal Fair Housing Act of 1968.

Answer 5

C steering.

Question 6

Under the provisions of the Federal Fair Housing Act, if a lender refuses to make loans in certain areas because the population is made up of more than 25% African Americans, the lender is probably practicing
A redlining.
B blockbusting.
C steering.
D borrower qualifying.

Answer 6

A redlining.

Question 7

Which practice is NOT permitted under the Federal Fair Housing Act as amended?
I Preference in the rental of rooms by a private club to its members
II An owner of a 20-unit apartment building renting exclusively to females
A I only
B II only
C Both I and II
D Neither I nor II

Answer 7

B II only

Question 8

Under federal law, families with children may be refused rental or purchase in buildings where strict conditions are met and occupancy is reserved exclusively for those at least how many years old?
A 55
B 60
C 62
D 65

Answer 8

C 62

Question 9

A newspaper ad reads: “For sale: 4-BR brick home; Redwood School District; excellent location; short walk to St. John’s Catholic Church; and right on the bus line. Move-in conditions. Priced to sell.” Which of the following statements is TRUE?
A The ad describes the property for sale and is very appropriate.
B The fair housing laws do not apply to newspaper advertising.
C The ad should state that the property is available to families with children.
D The ad should not mention St. John’s Catholic Church.

Answer 9

D The ad should not mention St. John’s Catholic Church.

Question 10

A real estate broker’s practice of offering a special discount to members of a particular protected
class is
A legally acceptable.
B illegal.
C legal but ill-advised.
D of no consequence.

Answer 10

B illegal.

Question 11

Protection from discrimination against a single father with a child under 18 in the sale or rental of real estate is provided by the
A Fair Housing Amendments Act of 1988.
B Civil Rights Act of 1866.
C Americans with Disabilities Act.
D Equal Credit Opportunity Act of 1974.

Answer 11

A Fair Housing Amendments Act of 1988.

Question 12

The Federal Fair Housing Amendments Act of 1988 added which of the following as protected classes?
A Occupation and source of income
B Handicap and familial status
C Political affiliation and country of origin
D Age and marital status

Answer 12

B Handicap and familial status

Question 13

A real estate broker told a single man with two small children that units for sale in a condominium complex are available only to married couples with no children. Which of the following statements is TRUE?
A The condominium complex is permitted to restrict buyers in any way as long as it is uniform in applying the restrictions.
B Multifamily complexes are exempt from the fair housing laws.
C The man may file a fair housing complaint alleging discrimination on the basis of familial status.
D The man may file a fair housing complaint alleging discrimination on the basis of marital status.

Answer 13

C The man may file a fair housing complaint alleging discrimination on the basis of familial status.

Question 14

The seller requests that showings be restricted to buyers of a particular race and national origin. The listing agent
A must obey the seller-client regardless of the agent’s personal beliefs.
B should terminate the listing if the seller will not reconsider the instructions.
C may obey the client as long as the agent is not obvious in the restriction.
D should ignore the seller’s instructions and show to all buyers.

Answer 14

B should terminate the listing if the seller will not reconsider the instructions.

Question 15

In North Carolina, a person who feels she has been discriminated against in housing by a property owner should file a complaint with the
A local sheriff.
B North Carolina Human Relations Commission.
C North Carolina Association of REALTORS®.
D North Carolina Real Estate Commission.

Answer 15

B North Carolina Human Relations Commission.

Question 16

After a broker takes a residential listing, the owner states that he does not want his home shown or sold to a foreign buyer. The broker should
A advertise the property exclusively in foreign-language newspapers.
B explain that the broker cannot knowingly comply with any instruction that violates federal law.
C abide by the client’s directions since the agency’s duty of obedience overrides fair housing laws.
D require that the owner sign a separate legal document stating the additional instruction as an amendment to the listing agreements.

Answer 16

B explain that the broker cannot knowingly comply with any instruction that violates federal law.

Question 17

All of the following are in violation of the Federal Fair Housing Act of 1968 EXCEPT
A refusal of a property manager to rent an apartment to a couple who belong to a particular religious group who are otherwise qualified.
B general policy of a loan company to avoid granting home loans in an ethnically transitional neighborhoods.
C intentional neglect of a broker to show a family from a particular race property listings in all-white neighborhoods.
D insistence of a widowed woman on renting her spare bedroom only to another widow.

Answer 17

D insistence of a widowed woman on renting her spare bedroom only to another widow.

Question 18

A real estate broker wants to end racial segregation. As an office policy, the broker requires that affiliated brokers show prospective buyers from racial or ethnic minority groups only properties that are in certain areas of town in order to create more diversity in residential areas. The broker has prepared a map illustrating the appropriate neighborhoods for each racial or ethnic group. Which of the following statements is TRUE regarding this broker’s policy?
A The broker’s policy constitutes blockbusting only because of the use of the prepared area map.
B It constitutes illegal steering, regardless of the broker’s intentions.
C The broker’s policy clearly shows the intent to improve community diversity and is therefore legal.
D The broker’s policy constitutes steering because the broker requires policy compliance by his affiliated brokers.

Answer 18

B It constitutes illegal steering, regardless of the broker’s intentions.

Question 19

All of the following are protected classes under the Equal Credit Opportunity Act EXCEPT
A national origin.
B familial status.
C religion.
D age.

Answer 19

B familial status.

Question 20

The provisions of the Federal Fair Housing Act apply
A in all states.
B only in those states that have ratified the act.
C only in those states that do not have substantially equivalent laws.
D only in those states that do not have specific state fair housing laws.

Answer 20

A in all states.

Question 21

During this investigation period of a complaint, HUD can attempt to resolve the dispute informally through
A litigation.
B mediation.
C arbitration.
D conciliation.

Answer 21

D conciliation.

Question 22

Suggestive comments, insults, jokes about sex or gender, sexual propositions, and threats are
A not considered a serious matter in a landlord-tenant relationship.
B not illegal forms of behavior if committed by a property manager.
C are unlawful forms of conduct toward a tenant by a landlord (lessor) or a lessor’s agent in North Carolina.
D are unlawful acts under the Federal Fair Housing Act.

Answer 22

C are unlawful forms of conduct toward a tenant by a landlord (lessor) or a lessor’s agent in North Carolina.

Question 23

The goal of the ADA is to
A ensure that all places of employment, no matter the number of employees, are accessible.
B make sure that people with mobility impairments can access restrooms.
C ensure that all commercial buildings have elevators.
D enable individuals with disabilities to become part of the economic and social mainstream of society.

Answer 23

D enable individuals with disabilities to become part of the economic and social mainstream of society.

Question 24

In contrast with fair housing laws, the NAR Code of Ethics has two additional protected classes, which are
A age and marital status.
B sexual orientation and age.
C sexual orientation and gender identity.
D marital status and occupation.

Answer 24

C sexual orientation and gender identity.