Ch. 7 Federal and State Housing Laws Flashcards
For many families the purchase of a home is the largest single investment they will make during their lifetime. The federal government and all state governments have enacted laws to ensure that the public interest in real estate is adequately protected. This chapter highlights some of the laws most important to Florida real estate practitioners. Licensees should study these laws to make certain they comply with the laws to better serve the public. (35 cards)
Total yearly cost of credit
annual percentage rate (APR)
The illegal practice of inducing homeowners to sell their property by making misrepresentations regarding the entry or prospective entry of minority persons in order to cause a turnover of properties in the neighborhood; discriminatory acts against sellers.
blockbusting
A federal act that prohibits any type of discrimination based on race in any real estate transaction (sale or rental) without exception.
Civil Act Rights of 1866
An act contained in title VIII of the Civil Rights Act of 1968 that created protected classes of people and prohibits discrimination when selling or renting residential property when based on race, color, religion, sex, national origin, familial status, or handicap status.
Fair Housing Act
A protected class as defined in the Fair Housing Act consisting of one or more individuals under age 18 living with a parent or legal guardian and pregnant women.
familial status
A preliminary accounting of expected closing costs. The Real Estate Settlement Procedures Act requires lenders to give loan applicants a good-faith estimate that lists the charges the buyer is likely to pay at closing.
good faith estimate
A protected class as defined un the Fair Housing Act and the American with Disabilities Act consisting of a physical or mental impairment that substantially limits one or more major life activities.
handicap status
A disclosure document required under the federal Interstate Land Sales Full Disclosure Act.
property report
Private entities that own, lease, lease to, or operate facilities such as restaurants, retail stores, hotels, movie theaters, private schools, convention centers, doctors offices, homeless shelters, transportation depots, zoos, funeral homes, day care centers, and recreation facilities, including sports stadiums and fitness clubs.
public accommodations
Discriminatory financing by lending institutions.
redlining
A disclosure statement given to borrowers that discloses whether the lender intends to service the loan or transfer it to another lender or servicing company.
servicing disclosure statement
A booklet containing consumer information regarding closing costs the borrower may incur at closing. The Real Estate Settlement Procedures Act requires lenders to give the booklet to loan applicants.
special information booklet
Discriminatory acts against buyers.
steering
The Turth in Lending Act requires creditors to disclose certain information if certain credit terms, called triggering terms, are included in the advertisement. Triggering terms include the amount or percentage of down payment, number of payments, period (term) of repayment, amount of any payment, and the amount of any finance charges.
triggering terms
Truth in Lending Act (TILA)
1
- The federal statute that prohibits a private homeowner from discriminating strictly on the basis of race if selling, renting, or leasing is the
a. 1968 Fair Housing Act.
b. 1866 Civil Rights Act.
c. 1934 National Housing Act.
d. 1968 Interstate Land Sales Full Disclosure Act.
B
- The law that requires that lenders disclose the annual percentage rate (APR) of interest is the
a. Real Estate Settlement Procedures Act (RESPA).
b. Federal Housing Act (FHA)
c. Florida Deceptive and Unfair Trade Practices Act (“Little FTC Act”)
d. Regulation Z ( Truth in Lending Act).
D
- The federal 1968 Fair Housing Act prohibits discrimination based on
a. race, color, religion, sex, national origin, familial status, or handicap status.
b. race or age.
c. religion, age, race, familial status, or handicap status.
d. race, color, religion, age, or national origin.
A
- The truth in Lending Act
a. does not affect real estate financing credit.
b. attempts to regulate maximum interest rates charged consumers.
c. requires disclosure of finance charges as well as annual percentage rates of interest.
d. accomplishes all of the above.
C
- The Real Estate Settlement Procedures Act (RESPA) was enacted to
a. establish a maximum cost for all closing items.
b. ensure that sellers are informed regarding the amount and types of expenses expected at closing.
c. ensure that buyers are informed regarding the amount of types of expenses expected at closing.
d. establishing a minimum cost for all closing items.
C
- If requested by the borrower, and to the extent that information is available to the closing agent, the borrower must be provided with which item at least one business day before closing?
a. HUD-1 Settlement Statement
b. Borrower’s Special InformationBooklet
c. Guaranteed amount of settlement costs
d. Notice of title closing agent selection
A
- As part of the preparation for a closing, a listing broker referred a property owner to an appraiser. The appraiser completed the appraisal and charged the owner $250 which was entered on the RESPA settlement statement. The appraiser gave the listing broker $50 for the referral, which the broker accepted. According to RESPA
a. the listing broker also must be licensed as an appraiser.
b. the appraiser has not violated the law as long as the appraiser is state certified.
c. both the broker and the appraiser have violated the law.
d. the arrangement is entirely legal.
C
- Which transaction is exempt from RESPA requirement?
a. The sale of a house where the only financing is assumption of an existing loan.
b. A construction loan that will become a permanent loan only after the building is completed.
c. A loan to purchase a new house in a new subdivision.
d. An adjustable-rate mortgage loan to purchase a five-year-old residence
A
- The intent of the Florida Landlord and Tenant Act is to
a. give the tenant a legal advantage in a relationship with the landlord.
b. make the landlord-tenant relationship more equitable.
c. provide landlords the legal assistance needed to create an advantageous relationship.
d. regulate residential and commercial rental property.
B
