AZ - RE School (A-9) Flashcards
U.S. Constitution (1787)
F.F.H.L.
Make sure laws are reaction to society & equal under the law.
Dread Scott vs. Sanford (1857)
F.F.H.L.
Slaves can’t vote & they equate to a 3/5 vote
XIII Amendment (1865)
F.F.H.L.
Abolished slavery
Civil Rights Act of 1866
F.F.H.L.
The 1st civil rights act prohibited racial discrimination in the sale or lease of property
Plessy vs Ferguson (1896)
F.F.H.L.
Established “Separate but equal” (institutionalized segregation)
Brown vs Board of Education (1954)
F.F.H.L.
Abolished “Separate but equal” (white flight…whites ran to suburbs)
Civil Rights Act - Title VIII (1968)
aka Fair Housing Act
A) Race, color religion, national origin
B) Blockbusting: fear or panic selling…“They’re moving in, sell before they get here”
C) Steering: taking a buyer to an area that an agent thinks they’ll be better off
D) Redlining: limiting the number of loans w/out regard to economic qualifications
Fair Housing Exemptions
A) Private Owner:
- no more than 3 single family homes
- no broker services used
- no discriminatory advertising
- not a dealer (no more than 3 transactions in last 3 months)
- “Mrs. Murphy’s Boarding House” rule (if you live in a fourplex and rent 3, you can discriminate)
B. Religious Organizations
C. Private Clubs (100% privately owned)
Jones vs Mayer
Bans racial discrimination in both private and public sectors (deed restrictions are illegal & unenforceable when they discriminate)
Fair Housing Act - Amendment (1974)
Adds gender/sex
Equal Credit Opportunity (ECOA) (1974)
A) Prohibits credit discrimination
B) Race, color, religion, national origin, gender, age, marital status, or dependency on public assistance.
C) What are the questions lenders cannot ask? …anything listed in B
D) Time period to give reason for loan denial (30 days)
E) Borrow can rebut reasons for denial
Changes to Title VIII (1988)
A) Include families w/ children & handicapped
B) Familial Status
C) “Housing for Older Persons” exemption
D) Handicap/Disability
E) New Construction
F) Specific Issues
Familial Status
1) Family: an adult w/ one child under age of 18yrs old. (pregnant woman qualifies).
2) Specific buildings - no
3) Deposits - no
4) Occupancy standards - 2 per bedroom
“Housing for Older Persons” exemption
1) 62yrs old - 100%
2) 55yrs old - 80% (one must be 55yrs +)
3) Facilities and services (no longer required as of 1995) - recreation & medical
4) Who may own vs occupy - anybody can own, restrictions are valid when owning
Handicap/Disability
1) Handicap: limitation of one or more daily life functions for an extended period of time (walking, seeing, hearing, breathing, learning, caring for oneself)
2) Exceptions - alcoholism is, drug addiction isn’t
3) Existing Structures - they stay, but don’t have to be brought to code
4) Rights to modify - tenant may make reasonable modifications (which tenant pays for)
5) Landlord rights - The lessor may require lessee to return to original/reasonable condition
New Construction
1) Accommodations - 2 stories or more
2) Parking - first available spot to handicap person at no extra charge
3) Accessible to common areas - Fair housing requirement
Specific Issues
1) Pets vs assistive animals - An assistive animal isn’t a pet…cannot charge extra deposit
2) Real estate agents leasing - concerns is steering
Brokerage Advertising Regulations
A) Equal housing opportunity logo - visible to general public
- Classified vs Display ads - yes
- Fliers and promo materials - yes
- Internet advertising - yes, logo must appear on every page w/out scrolling
B) Broker office requirements - HUD poster has to be visible to general public
C) Human models - need to reflect the community
D) Publication of general circulation - paper of 2 or more pages (daily/weekly) that has been published at least 6 months
Fair Housing Enforcement Provisions
A) Administrative law judge ($16,000)
B) Federal court ($37,500)
C) Fines per offense ($65,000)
The Americans w/ Disabilities Act (ADA)
Strictly commercial - Not residential
A) Title I - Employment
1) Purpose - prohibits intentional discrimination in the workplace
2) Number of employees - 15 or more full time
3) Accommodations for employees - reasonable accommodations that don’t create or undue a hardship
AZ Residential Landlord-Tenant Act (Residential)
A) Residential is not property mgmt
- Purpose - Regulates/governs the relationship between landlord & tenant
2) Application - this is residential not commercial
AZ Residential Landlord-Tenant Act (Landlord Obligations)
B) Landlord Obligations
1) Security deposit - is 1.5x the monthly rent…must return within 14 days of deposit.
2) Maintain fit premises - livable by a normal fit human being.
3) Notices required - must be available online,
A. copy of landlord-tenant act available online (azhousing.gov)
B. bed bug education materials
4) Move-in inspection sheet
5) Name of owner or manager (provide person to speak to in-case of emergency
Tenant Obligations
1) Use of unit (for dwelling not a business)
2) Rules and regulations
3) Access - have to give if they provide 24-48hr notice
4) Payment of rent - considered delinquent as of the 1st day it was due (if not states in lease, the due 1st of month)
Remedies for non-compliance by Landlord
1) Failure to return security deposit - landlord must deliver within 14 days or twice the amount deposited.
2) Failure to deliver possession - 5 days & terminate lease if landlord fails to deliver unit
3) Self-help for minor defects - 10 calendar days to repair $300 or 1/2 rent (whichever is greater)
4) Failure to supply essential services - 5 days (heat, water, air)
5) Fire and casualty damage - 14 calendar day notice
6) Constructive eviction - tenant moves out to which it was no fault of their own.
Remedies for non-compliance by tenant
1) Failure to pay - 5 day notice given to tenant
2) 5-day notice - first step when tenant doesn’t pay, must give proof of delivery
3) Court date - show judge 5 day notice and proof of delivery
4) Forcible entry and detainer - eviction notice 5 days to obey (tenant)
5) Writ of restitution - if the tenant doesn’t comply…the judge gives sheriff or officer the right to physically remove tenant
6) Actual eviction - moving tenants personal belongings to curve
7) Distraint provisions - always/only applies to commercial
Termination Notice
1) Month to month - 30 days
2) Week to week - 10 days
3) illegal activity - immediately
Residential Rental Property Registration
A) Purpose - the assessor knows who owners are vs renters
B) Classification - changes property from residential to income
C) Slumlord provisions - provide protection to tenants from slum lords
D) City requirements - must notify the city within 10 days of acquisition (close of escrow)
E) Penalties - $1,000 plus $100 per month until it’s registered
Property Management Regulations (MGMT Agreements)
A) Management agreements - must be in writing, must include ago of building, doesn’t have t include appraisal
1) Parties - can be signed by licensees or brokers
2) Prop. Manager as general agent - owe fiduciary duties to the client
3) Beginning & ending date
4) Cancellation provisions - any time parameters are allowable…agreement terminates if brokerage license is lost
5) Disposition of monies
6) Status reports - must have bak reconciliation & client balance monthly
7) Repair amounts - any repair up to $300
8) Listing agreement for MGMT -
9) Record of retention - 1 yr from expiration (broker needs to keep record)
Trust Account
Broker needs to put all the money (not brokers $) into trust account i.e. security deposits
1) Property MGMT accounts
2) Account signatory - broker, employees of broker, licensees under broker (not property owner)
3) Payment monies
4) Interest bearing account - interest must be removed every 12 mos.
Property MGMT Functions
Not required to tell owner buildings’ value
1) Budgeting - mgmt fees, utilities, maintenance, but not large one-time capital expediters.
2) Setting rental rates - yes
3) Payment of finder fees - yes up to $200 credit to rent reduction only 5 times in 12 month period…(can’t pay finder fees to unlicensed agent)
4) Selecting tenants
5) collecting rents
6) Maintenance
A. preventative - fix something before it becomes a problem
B. corrective - fix something already a problem
C. routine -
7) Comply w/ Fair Housing and Americans w/ Disabilities Laws
Interests in Buildings (Apartments)
A) Apartment rental
- Interest - tenant has a legal interest to possess but not ownership
- Responsibility - tenant can use property
- Renters insurance - tenants need this to protect their own property
Interests in Buildings (Co-operative)
B) Co-operative (this is stock)
- Form of ownership - purchase of stock w/ long-term lease called security interest (buying only a percentage of interest)
- Property lease
- Undivided interest
- First right to purchase
- Stock transfer - if you have a interest in building, then you have right to transfer stock or sell lease
- Approval of new stockholders
- Annual assessment
Interests in Buildings (Condominiums)
(Purchasing cubage only)
- Definition - ownership in the condo and you have tendency in common for the common areas
- Separate titles & taxation - each would receive a separate tax bill
- Assessments - are charged for common are maintenance
- Condominium association / corporation - CC&R is the corporation
Interests in Buildings (Lofts)
Big apartments w/ no walls
Interests in Buildings (Townhouses)
- Definition - purchasing cubage, own everything above & below… commonly 2-stories, aka vertical regime w/ zero lot line
- Common areas - zero lot line
- Homeowners association
4) Separate titles
Interests in Buildings (Patio Homes)
Zero lot lines, w/ little bit of dirt
Interests in Buildings (Timeshares) T.Q.
Interval ownership
- Definition - two or more owners w/ interval ownership
- Types of ownership - tenants in common
- Right of recession of contract - 7 days
- Advertising material - contents must be honest/truthful
