Chapter 17 COPY

Question 1

Impacts of Fair Housing Violations Include:

This is a minimal question on exam
www.fairhousinginstitute.com

Answer 1

Civil and criminal violation
Disciplinary action against a licensee

Applies to all parties in a transcation

Question 2

For exam memorize this one with date

1866 Civil Rights Act

For exam memorize this one with date

Answer 2

Illigal to discrimintae on the basis of race - NO EXCEPTIONS

Question 3

1968 Fair Housing Act
(race, color, religion, national origin)

Answer 3

IIlegal to discriminate in:
* sale or renting
* advertising
* financing
* brokerage services
* appraisal

Linden Johnson

Question 4

1974 Gender Added

Answer 4

Sex

Question 5

1988 Amendments

Answer 5

• Handicapp
• Familial Status

Marital status and age are not protected classes under fair housing

Question 6

7 Protected Classes Under Fair Housing

Answer 6

• Familial Status (kids under age of 18)
• Race
• Sex
• Handicapp
• Color
• Religion
• National Origin

Question 7

TP

Prohibited Practices

Need to know for test

Answer 7

Blockbusting
Steering
Redlining

Question 8

TP

Prohibited Parctices: Blockbusting

On test

Answer 8

Relates to SELLER.
ex: “Move now while you can before these xxx people move in”. Cannot say that.

Question 9

Prohibited Practices: Steering

Answer 9

Relates to BUYERS.
Directing buyers to or away from a neighborhood based on a pprotected class.
ex: “You should live in this neighborhood becasue of xxx”.

Question 10

Prohibited Practices: Redlining

Answer 10

Changing loan terms and conditions based on ethnic or racial makeup
Lender or mortgage industry violation
ex: chargiing higher rates in a certain area of protected class

Question 11

Excusions from Fair Housing Compliance

Answer 11

• Rental of rooms - owner occupied (1-4 families).
  ex: can say I do not want famils with children, handicap, etc. Does NOT apply to RACE.
• Dwellings for religious organizations
• Private clubs: memeber of golf club
• FSBO excluded from all EXCEPT for RACE
• Cannot own more than 3 properties
• No broker involved
• Cannot use discriminatory advertising
• (does not apply to NC. In other states if not broker is involved or you own 3 or less you can pick and choose who lives in your property)

Does NOT apply to RACE.

Question 12

1988

Answer 12

Addion of Disability (handicap)
“any physical or mental imparement that limits a persons abilities”

Question 13

Assistive Animals

Answer 13

Has to be documented

Question 14

TP

Accomodation

Answer 14

Expense is on owner or landlord
Need to allow for accomodations

know whos expense

Question 15

TP

Modification

Answer 15

**Expense of renter
Landlord must allow renter to do at their own expense
ex: install grab bars in shower, ramp, etc.
Can be iin writing or oral

know whos expense

Question 16

Familial Status (includes pregnant women and also people in process of adoption)

Answer 16

You cannot deny someone housing on the basis that they had or are going to have children

Question 17

TP

Standard Occupancy

Answer 17

Landlord cannot prohibit children but CAN have reasoonable restrictions to comply with zoninig, etc.

Question 18

Senior Communities (HOPA)

Do not need to know for test

Answer 18

Senior Community Rules
REsidents 62 or older - 100% of occupied
1 resident 55 and older - 80% of occupied households
Must verify persons age
Must advertose as senior living
Ebnfirced bu HUD

Question 19

ECOA

Answer 19

Applies ot lenders
Adds 3 more protected classes
Marital status
age
recept of public assisrance

Question 20

NC Fair Housing Act

Answer 20

No “for sale by owner” exemption
Onwer occupied rentals exempted
NC exempts single sex dormatories
Enforced by NCGRC

Question 21

TP

Time for Filing Complaints

know for tes

Answer 21

1 year to file
2 year to file private lawsuits

Question 23

TP

ADA

Answer 23

Mandatory accessibility (parking spaces, zero grade entry, handicap restrooms)

Applies to public and commercial buildings

Question 25

Home Ownership: Tax Deductible Expenses

Answer 25

Dollar for dollar you can deduct * Interest * Real estate taxes * Loan discount points (buy down rate) * Loan origination fees

Question 26

Primary Residense:

Answer 26

You cannot deduvt insurance

Question 27

Capital Gains: Definition

Answer 27

Know terminology What you bought the prooperty for a cost of acquisition (closing sosts) Adjusted basis: basis + improvements Amount realized: sales price - closing expenses Gain: amount realized - adjusted basis Capital improvements: items that are permanent and will increase the value of the property (new roof, new kitchen, remodle, etc.)

Question 28

Capital Gains: **Exclusions**

Answer 28

Own and occupy 2 out of the last 5 years (does not need ot be consecutive) Gains are excluded from taxation * $250,000 single * $500,000 married

Question 29

Capital Gains: **Non-Owner Occupied Property**

Answer 29

Non-Owner Occupied If owner DID NOT live in property 2 out of last 5 years the gain is taxable * Short term gain (12 months or less) Capital gain tax is considered at ordinary income tax rate * Long term gain (more than 12 months) Capital gain tax is 15%

Question 30

1031 Tax Exchange

Answer 30

Investors may exchange properties * Avoids immediate tax * "Like kind" more real estate * Must use and axchanger * Holds and reinvests proceeds * Strict timelines involved * Cannot touch money ## Footnote The "Exchanger: a company that holds the money you gain to reinvest. Closing attorney will know how to do this.