(Ch. 20) Anti-Discrimination And Federal Fair Housing

Question 1

1. In New Jersey, you are taking a listing on an owner-occupied single-family residence, the owner states that you are not to show the property to unmarried people, you should:

(A) ignore the request and proceed with the listing.
(B) comply with your principal’s request.
(C) make note of the fact in the listing and continue to list, hoping that no unmarried people want to see the property
(D) refuse to take the listing.

Answer 1

D

Martial Status is a protected class under the N.J. Law Against Discrimination

Question 2

2. Which is the federal agency that administers fair housing laws?

(A) FHA.
(B) NAR.
(C) HUD
(D) Attorney General

Answer 2

C

Dept. of Housing and Urban Development.

Question 3

3. A landlord refused to rent to a blind person who used a guide dog. The landlord claimed that the refusal was based on a lease restriction prohibiting pets.

(A) The action was lawful but unethical.
(B) The action was unlawful, because federal law requires reasonable accommodations to the needs of handicapped persons in rules, policies, etc. to allow the handicapped an equal opportunity to use or enjoy a dwelling.
(C) The action was lawful and ethical
(D) The action would be allowed because of the restriction in the lease.

Answer 3

B

The 1988 amendments added protections for physically and mentally handicapped persons

Question 4

4. Under Federal Fair Housing, which of the following is exempt?

(A) Private clubs operating a commercial boarding house.
(B) Religious organizations.
(C) Owner-occupied six-family houses.
(D) builder-developers

Answer 4

B

Private clubs cannot operate for a profit

Question 5

5. Blockbusting is acceptable:

(A) with approval of the buyer and seller.
(B) with approval of HUD
(C) with approval of the New Jersey Division of Civil Rights.
(D) under no circumstances.

Answer 5

D

Blockbusting is a violation of federal and state law

Question 6

6. Under the New Jersey Law Against Discrimination, which of the following would be exempt from the law?

(A) The rental of a single apartment or flat in a two-family dwelling, the other occupancy unit of which is occupied by the owner as his residence at the time of the rental
(B) The owner of a single-family house with respect to its sale.
(C) Both A and B.
(D) Neither A nor B.

Answer 6

A

The owner of single-family house cannot unlawfully discriminate

Question 7

7. A chanting religious group bought a house in a subdivision and organized it into a commune. A broker eager to make some quick profits began to canvass this neighborhood soliciting listings by inquiring whether residents knew who had just moved into the area and leaving his business card. Which term best describes the broker’s marketing program?

(A) Redlining.
(B) Lawful solicitation.
(C) Blockbusting.
(D) Steering.

Answer 7

C

This is unlawful practice.

Question 8

8. The Civil Rights Act of 1866 prohibits discrimination in housing on the basis of

(A) race.
(B) color.
(C) religion.
(D) all of the above.

Answer 8

A

The other classes became protected by later laws

Question 9

9. John Medvecky lives on the first floor of a two-family house which he owns in Cedar Grove, NJ. In renting the second floor apartment Medvecky may lawfully reject an applicant because of

(A) race.
(B) marital status.
(C) Both A and B.
(D) either A nor B.

Answer 9

B

Racial discrimination would be a violation of the Civil Rights Act of 1866

Question 10

10. Under the Discrimination Law among the powers of the Division of Civil Rights is the power to

(A) impose money penalties.
(B) suspend licenses.
(C) imprison.
(D) revoke licenses

Answer 10

A

Revocation or suspension requires action by the REC

Question 11

11. Under the New Jersey Law Against Discrimination, which of the following penalties may be imposed by the Division of Civil Rights for a first offense?

(A) A fine of not more than $5,000
(B) Revocation of a broker’s or salesperson’s real estate license.
(C) Suspension of a broker’s or salesperson’s real estate license
(D) Issuance of cease and desist orders.

Answer 11

D

The Division of Civil Rights cannot revoke or suspend a real estate license. But it can inform the Commission, which can then take disciplinary action

Question 12

12. The practice of directing minority customers to minority areas is known as:

(A) steering and is legal.
(B) steering and is illegal.
(C) panic peddling.
(D) blockbusting.

Answer 12

B

Called “Racial Steering”

Question 13

13. Under the New Jersey Discrimination Law discrimination for which of the following reasons would NOT be unlawful?

(A) Religion.
(B) National origin.
(C) Marital status.
(D) Age.

Answer 13

D

Age discrimination is not a fair housing violation. Don’t confuse with familial statuses

Question 14

14. The unlawful practice of a lending institution refusing to approve loans in a particular town because of the number of properties that are owned by members of minority groups is called:

(A) blockbusting.
(B) redlining.
(C) panic peddling.
(D) disintermediation.

Answer 14

(B)

See Home Mortgage Disclosure Act

Question 15

15. If Mrs. Murphy lives in a rooming house that she owns across the street from a college, she may lawfully do all of the following EXCEPT:

(A) refuse to rent to members of a certain religion
(B) refuse to rent to families with children. under 18 years of age.
(C) discriminate on the basis of physical handicap.
(D) advertise “Female Students Only.”

Answer 15

(D)

Mrs. Murphy may legally refuse to rent to male students, but cannot advertise in a discriminatory manner

Question 16

16. You are violating the Federal Fair Housing Act of 1968 if you:

(A) establish a multiple listing service that excludes members on the basis of race.
(B) refuse to sell a vacant lot zoned commercial because of the buyer’s nationality.
(C) refuse to rent an office because of the prospective tenant’s religion.
(D) refuse to rent an apartment because of the applicant’s marital status.

Answer 16

A

The Federal Fair House Act applies only to housing; martial status is a protected class under the NJ law

Question 17

17. The authority under the Federal Fair Housing Act rests with:

(A) the Secretary of the Interior.
(B) the Attorney General.
(C) the Federal Housing Authority
(D) the Secretary of Housing and Urban Development

Answer 17

D

Commonly called “HUD”

Question 18

18. An owner wants to sell his property without the aid of a real estate broker. He may legally do all but one of the following:

(A) Establish the purchasing power of the buyer.
(B) Write up the sales contract between himself and the buyer.
(C) Require that the buyer assume the present mortgage.
(D) Reject a buyer on account of race.

Answer 18

D

A violation of federal and state laws

Question 19

19. A New Jersey developer is offering lots for sale in a subdivision zoned “light industry.” The asking price is $50,000. The developer receives a full-price, all-cash offer from a minority buyer with the following contingency: “This offer will become void if not accepted within 10 days.” On the 11th day, the developer sells the lot in question to a Caucasian buyer for $40,000. Which of the following statements is true?

(A) The developer violated the Federal Fair Housing Act.
(B) The developer’s action was legal because the contingency expired.
(C) New Jersey developers are exempt from the law.
(D) A violation of the New Jersey Law Against Discrimination has occurred.

Answer 19

D

By using delaying tactics, the developer violated the N.J. Law Against Discrimination which broadly covers all real estate transactions. The federal law deals only with housing and does not cover lots zoned “light industry.”

Question 20

20. A complaint under the New Jersey Discrimination Law must be submitted within:

(A) 180 days.
(B) 60 days.
(C) 45 days.
(D) two years.

Answer 20

A

One year to file under the federal law

Question 21

21. A New Jersey landlord cannot refuse to rent to a family because:

(A) of marital status.
(B) they have a pet.
(C) of familial status.
(D) of both A and C.

Answer 21

D

Discrimination because of familial status violates federal law. Martial status is covered by NJ law

Question 22

22. Evelyn and Walter Jenkins, an African American couple, visit the Office of xYz Real Estate Co. After discussing their housing needs and financial information, the agent shows them homes in their price range, but only ones located in areas with a high percentage of African-American residents. The agent is engaging in the unlawful practice of

(A) steering.
(B) redlining.
(C) blockbusting.
(D) panic peddling.

Answer 22

A

Racial steering is a violation of state and federal