Flashcards in Real Estate Course Chapter 7 Deck (40)
The Civil Rights Act of 1866, makes racial discrimination illegal in what types of real estate transactions
Any type without exception
From which source can a broker obtain a copy of the equal housing opportunity poster for a new real estate office?
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
A purchaser of subdivided lands of 25 or more lots has the right to cancel the purchase agreement within how many days?
SEVEN DAYS. Under the Interstate Land Sales Full Disclosure Act, purchasers who receive a copy of the property report prior to signing the contract may cancel the agreement within seven days.
A tenant of a rental apartment has given notice to vacate at the end of the lease. Is the tenant required to allow the management company to show the premises to a prospective tenant?
The Fair Housing Amendment act prohits discrimination against seven protected classes. What are they?
Race, Color, Religion, Sex, Handicap status, Familial status, National origin.
What is Redlining?
When an insurance company imposes different insurance terms and conditions on homeowners located in certain neighborhoods.
Which Florida law prohibits a lender from refinancing a loan to the same borrower within the first 18 months of making a loan, if doing so does NOT reasonably benefit the borrower?
FLORIDA FAIR LENDING ACT
Which information must be given to a prospective borrower within three business days of making application for a mortgage loan?
SERVICING DISCLOSURE STATEMENT
Which information in the advertisement presented below is considered to be a triggering term? New waterfront town homes are nearing completion. These gorgeous homes would make a perfect second home or vacation property. Financing is available at competitive mortgage rates. Fixed rate mortgages are available with as little as 10 percent down. Jumbo mortgages are also available. Sale prices begin in the low $700,000s.
A)Fixed rate mortgages are available with as little as 10 percent down.
B)Financing is available at competitive mortgage rates.
C)Sale prices begin in the low $700,000s.
D)Jumbo mortgages are also available.
A) FIXED RATE MORTGAGES ARE AVAILABLE WITH AS LITTLE AS 10 PERCENT DOWN
The 3 day right of recission in Regulation Z applies to which loans only:
Home equity lines of credit, 2nd mortgages and refinance loans.
NOTE: A borrower does not have the right to cancel home acquisition loans.
What is the name for the discriminatory practice whereby one person induces another person to enter into a real estate transaction by suggesting that the first person may benefit financially from a potential change in the neighborhood with respect to race, sex, religion, color, handicap, or familial status, and that the change may result in the lowering of property values?
Which regulation requires lenders to disclose the annual percentage rate of interest and finance charges?
Rugulation Z. The Truth-in-Lending Act is implemented by Federal Reserve Regulation Z. The law requires lenders to disclose the annual percentage rate of interest and finance charges imposed on consumers.
What is a servicing disclosure?
Who requires this disclosure?
When is it required to be given?
It discloses to the borrower whether the lender intends to service the loan or transfer it to another lender or servicing company.
RESPA requires this disclosure to be made at the time of loan application or within three business days.
Which document must be given to the borrower at LEAST one day before the title closing if requested by the borrower?
A)Good faith estimate of closing costs
B)HUD-1 settlement statement
C)Special information booklet
D)Servicing disclosure statement
The answer is B) HUD-1 SETTLEMENT STATEMENT
Title VIII of the Civil Rights Act of 1968 does NOT apply to which type of property?
A)Privately-owned residential property offered for sale or lease through a real estate licensee
B)Three-unit dwelling in which the owner resides in one of the units
C)Multifamily dwellings of five or more units
D)Government-owned residential property
The answer is C) THREE-UNIT DWELLING IN WHICH THE OWNER RESIDES IN ONE OF THE UNITS. Title VIII of the Civil Rights Act (Fair Housing Act) covers multifamily dwellings of four or fewer units if the owner resides in one of the units. In this case, there are three units, and the owner resides in one of the units. Remember, however, that racial discrimination is illegal in any real estate transaction under federal law.
Which law prohibits a mortgage lender from paying a real estate broker an unearned referral fee?
B)Real Estate Settlement Procedures Act
C)Florida Uniform Land Sales Practices Act
D)Florida Fair Lending Act
The answer is B) REAL ESTATE SETTLEMENT PROCEDURES ACT.
Which law protects applicants from discrimination based on whether they receive income from public assistance programs?
EQUAL CREDIT OPPORTUNITY ACT. The Equal Credit Opportunity Act ensures that financial institutions and firms engaged in extending credit will make credit available without discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or receipt of income from public assistance programs.
A tenant notifies the landlord that she will not be renewing the lease. The tenant leaves the unit in excellent condition. After inspection of the premises, the landlord decides that the tenant is eligible to receive a full refund of the damage deposit. Within how many days must the landlord return the deposit?
The landlord has 15 days to return the security deposit and any accrued interest, if applicable, provided the landlord does not intend to make a claim on the security deposit
Explain the age exemption under the Fair Housing Amendment Act?
1) When all the units are occupied by persons 62 years of age or older,
2) At least 80 percent of the units are occupied by one or more persons 55 years of age or older.
Under which circumstance is a landlord relieved from the requirement to place security deposits into a special rental account?
A)Landlord files a statement of record with Florida Department of Business and Professional Regulation
B)Landlord posts a surety bond with the clerk of the circuit court
C)Landlord has assets in excess of $1 million
D)Landlord posts a financial assets statement with the Securities and Exchange Commission
The answer is LANDLORD POSTS A SURETY BOND WITH THE CLERK OF THE CIRCUIT COURT
Land developers are NOT permitted to sell or lease lots in subdivisions of 100 or more lots unless they have registered the subdivision with the U.S. Department of Housing and Urban Development (HUD).
The statement is TRUE. Before selling or leasing lots in subdivisions of 100 or more lots, developers first need to register the subdivision with HUD.
Which act prohibits a seller from from requiring buyers purchase title insurance from a particular company
The Real Estate Settlement Procedures Act
The Fair Housing Act recommends the use of an equal opportunity poster that features the equal housing logo and a statement that pledges adherence to the Fair Housing Act. True or False?
The statement is FALSE. The Act requires, not recommends, the use of an equal opportunity poster featuring the equal housing logo and a statement that pledges adherence to the Fair Housing Act.
The Civil Rights Act of 1866 was overturned by the U.S. Supreme Court in the Jones v. Mayer case.True or False?
The statement is FALSE. In 1968 the Jones v. Mayer case upheld the Civil Rights Act of 1866
Age is a protected class under the Fair Housing Act.True or False?
The statement is FALSE. Protected classes under the Fair Housing Act include race, color, religion, sex, national origin, familial status, and handicap status.
Religious organizations may restrict dwelling units they own or operate to members of their religion.True or False?
The statement is TRUE. Religious organizations may restrict dwelling units they own or operate to members of their religion provided the organization does not otherwise discriminate in accepting its membership.
At the time of application for a loan or within three business days thereafter, the lender is required to provide the borrower with a good-faith estimate of probable closing costs related to those items for which information is available from past experience or from knowledge of current costs
The statement is TRUE. This good-faith estimate is required under the Real Estate Settlement Procedures Act of 1974.
The Florida Residential Landlord and Tenant Act mandates that landlords pay tenants interest on their security deposits.True or False?
The statement is FALSE. Landlords can use a non-interest bearing account or post a surety bond.
The Americans with Disabilities Act (ADA) of 1990 requires that multifamily dwellings be designed and constructed so that the public and common-use portions of the dwellings are readily accessible to and usable by all persons with disabilities.
The statement is TRUE. The ADA is a federal statute designed. The act prohibits discrimination in places of public accommodations and in commercial facilities.