Ch 26: Fair Housing

Question 1

What does the Civil Rights Act of 1866 prohibit?

a. Discrimination against handicapped
b. Blockbusting
c. Discrimination based on race
d. Steering

Answer 1

c. Discrimination based on race

The Civil Rights Act of 1866 guarantees property rights to all citizens regardless of race.

Question 2

The landmark case concerning the constitutionality of fair housing was:

a. Jones v. Mayer
b. Broen v. Board of Education
c. Maxwell v. City of Chicago
d. Shelly v. Kramer

Answer 2

a. Jones v. Mayer

Jones vs. Mayer is the landmark case regarding fair housing.

Question 3

An example of blockbusting would be:

a. Soliciting listings based on a fear of racial change in the area
b. Refusal to lend within a designated area
c. Refusal to sell, or rent to prospects because of race
d. Directing people to areas based on race

Answer 3

a. Soliciting listings based on a fear of racial change in the area

Blockbusting is the illegal practice for profit of inducing panic selling in a neighborhood based on the introduction of minority homeowners into a neighborhood.

Question 4

A developer in selling homes would be advertising illegally if he or she advertised:

a. For persons with a “poor credit history”
b. To persons of a specific national origin
c. To persons of a specific political party.
d. For “singles only”

Answer 4

b. To persons of a specific national origin

National origin is a protected class under the Fair Housing Act and advertising directed to a protected class is a violation of the Act.

Question 5

When taking a listing, a broker should obtain all of the following information EXCEPT:

a. Cost of utilities
b. Age of the building
c. Racial composition of the neighborhood
d. Number of rooms in the property

Answer 5

c. Racial composition of the neighborhood

Determining and disclosing the racial composition of the neighborhood is a violation of the Fair Housing Acts.

Question 6

A women’s rights group established a non-profit housing project with preference to single women with children. Their action is:

a. Proper if there is no racial discrimination
b. Improper under the 1974 amendment to the Civil Rights Act of 1968
c. Proper if the organization is non-profit
d. Improper under the Civil Rights Act of 1866

Answer 6

b. Improper under the 1974 amendment to the Civil Rights Act of 1968

The preference to women with children is a violation of the 1974 amendment to the 1968 Act which established Sex as a protected class.

Question 7

Which of the following would MOST likely be legal under the Civil Rights Act of 1968?

a. A church, which excludes blacks from membership, renting its non-profit housing to church members only
b. Directing prospective buyers away from areas where they are likely to feel uncomfortable because of race.
c. A private country club where ownership of homes is tied to club membership, but all members are white.
d. A lender refusing to make loans in areas with more than 25 percent blacks

Answer 7

c. A private country club where ownership of homes is tied to club membership, but all members are white.

The private country club would also be in violation of the Fair Housing Act if the club had a policy that only allowed members of a certain race or religion to be members of the country club.

Question 8

The practice of making a profit by telling owners that a particular minority group is moving into the neighborhood, thus inducing the owners to sell is called:

a. Redlining
b. Racial steering
c. Puffing
d. Blockbusting

Answer 8

d. Blockbusting

Blockbusting is the illegal practice for profit of inducing panic selling in a neighborhood based on the introduction of minority homeowners into a neighborhood.

Question 9

All of the following are violations of the 1968 Federal Housing Law EXCEPT:

a. An owner who instructs a broker to avoid advertising in minority publications
b. Indicating the age of the other homes in the neighborhood
c. A buyer specifying a religious preference
d. A salesperson assigned to customers on the basis of race

Answer 9

b. Indicating the age of the other homes in the neighborhood

The age of the other homes in the area is not a violation, but could be considered a material fact required to be disclosed. Also, the age of the other homeowners in the area could be disclosed, since Age is not a protected class.

Question 10

The Civil Rights Act of 1968 protects against discrimination for all EXCEPT:

a. Age
b. National origin
c. Religion
d. Sex

Answer 10

a. Age

Age is not a protected class under the Fair Housing acts.

Question 11

A broker is instructed not to show a property while the owner, who is white, is away. While the owner is out of town, a black couple requests to be shown the property. The broker should:

a. Show the property to the black couple
b. Inform the prospects that the home is not available
c. Ask HUD for an exception to the Fair Housing Act
d. Refuse to show the property

Answer 11

d. Refuse to show the property

The broker should obey the instructions of the owner, which are not a violation of the Fair Housing Act. The instructions to not show the property at all, while the owner is out of town, is not a fair housing violation and must be obeyed.

Question 12

The purpose of the Federal Fair Housing Act is to:

a. Provide livable housing for all citizens
b. Provide equal housing opportunity
c. Eliminate all racial prejudice
d. Provide equal housing for all citizens

Answer 12

b. Provide equal housing opportunity

The Fair Housing Acts of 1968 and 1988 were passed to provide equal housing opportunities by establishing the following protected classes: Race, Color, Religion, National Origin, Sex, Familial Status and Handicap.

Question 13

The Federal Fair Housing Act does NOT:

a. Prohibit blockbusting
b. Prohibit sex discrimination
c. Prohibit steering
d. Provide minimum housing standards

Answer 13

d. Provide minimum housing standards

The Federal Fair Housing Act does not provide minimum housing standards.

Question 14

Broker Tom wants to list an expensive home, but the owner has requested that the home be sold to Caucasians only. The best advice to the agent would be:

a. Explain that it would be unlikely that Non-Caucasians would be able to afford the house
b. Tell the seller to find another agent.
c. Advise the owners to sell it themselves
d. Refuse the listing

Answer 14

d. Refuse the listing

The instruction of the owner is in violation of the Fair Housing Act and therefore, if the owner will not change the instructions the only curse of action for the agent is to refuse the Listing.

Question 15

Under the Civil Rights Act of 1988 (Fair Housing Act), discrimination is illegal in the sale and/or rental of property when it is based on:

a. Employment
b. Family size
c. Sex
d. Marital status

Answer 15

c. Sex

The Civil Rights Act of 1968 was amended in 1974 to add Sex as a protected class.

Question 16

A broker should NOT tell a prospective purchaser:

a. About zoning that makes the present use nonconforming
b. That people of a different race live next door
c. About property defects he was informed of by a neighbor
d. That the area has been designated for urban renewal

Answer 16

b. That people of a different race live next door

The racial makeup of a neighborhood should not be discussed with a prospective purchaser as it would be a violation of the Fair Housing Act. The other three answer choices are all required disclosures, since they could materially and adversely affect the consideration to be paid by the purchaser.

Question 17

In keeping with high professional standards of honesty and duty to both buyers and sellers, a licensee, in dealing with prospective black buyers SHOULD:

a. Suggest that they might prefer to work through a black broker
b. Be completely color blind in all dealings
c. Fully explain any racial problems
d. Inform the owners that the prospects are black

Answer 17

b. Be completely color blind in all dealings

It is a violation of the Fair Housing Act to discriminate against any person in the providing of services or facilities because that person is a member of a protected class. Therefore, brokers and agents must be completely color blind in all dealings.

Question 18

The Federal Fair Housing Act is enforced by bringing complaints to:

a. U.S. Court of Appeals
b. Federal Housing Administration
c. U.S. Department of Commerce
d. HUD

Answer 18

d. HUD

Most cases, by law, are presented to HUD (Department of Housing and Urban Development). The complaint must be filed within one year of the violation and HUD has 30 days to investigate the complaint.

Question 19

An apartment complex has a common area with public services such as a hair salon. The ADA:

a. Would not cover the facility since it is a residential unit
b. Would not cover the facility since the Fair Housing Act covers the total facility.
c. Would cover the public area and the Fair Housing Act would cover the residential area
d. Would cover the total facility due to the public area

Answer 19

c. Would cover the public area and the Fair Housing Act would cover the residential area

The public area would be covered by ADA and the Fair Housing Act covers the residential units.

Question 20

The Americans with Disability Act was adopted for all of the following reasons EXCEPT:

a. To prohibit employment discrimination against the mentally and physically disabled
b. To provide protection only to American citizens with disabilities
c. To provide accessibility to public accommodations by the mentally and physically disabled
d. To require the removal by private entities of existing architectural barriers to access

Answer 20

b. To provide protection only to American citizens with disabilities

The protection provided under the ADA is not limited to American citizens only.

Question 21

All of the following are Public Accommodations under the Americans with Disabilities Act EXCEPT:

a. A private residence
b. A private residence in which the den is used as the office for a self-employed real estate broker.
c. Real estate brokerage office
d. A hotel

Answer 21

a. A private residence

A private residence is not a Public Accommodation under ADA. If the residence is used as a Brokerages office then it is a Public Accommodation.

Question 22

A person with a disability who is covered under ADA has a mental or physical impairment or a record of such impairment or is regarded as having such an impairment that:

a. Has received a certification from the Department of Health that affects one or more major life activities.
b. Limits his or her mobility
c. Affects one or more major life activities
d. Is included on the ADA list of disabilities

Answer 22

c. Affects one or more major life activities

A disability covered under ADA is one that affects one or more major life activities. A certification from the Department of Health is not required.

Question 23

A landlord allowed a tenant confined to a wheelchair to make several minor physical changes to an apartment. These changes are called:

a. Familial accommodations
b. Disability accommodations
c. Reasonable accommodations or modifications.
d. Trade fixture modifications

Answer 23

c. Reasonable accommodations or modifications.

They are Reasonable Accommodations or Modifications in accordance with the Americans with Disabilities Act.

Question 24

Impairment under the Americans with Disabilities Act does NOT include:

a. Current illegal drug use
b. Inability to care for oneself
c. Mental retardation
d. Recovering drug and alcohol addiction

Answer 24

a. Current illegal drug use

Current illegal drug use is not an impairment under ADA.

Question 25

Title I of the Americans with Disabilities Act applies to all employers with:

a. 15 or more full-time employees
b. 15 or more full-time employees, including independent contractor real estate agents
c. 25 or more full-time employees, not counting independent contractor real estate agents
d. 25 or more full-time employees

Answer 25

b. 15 or more full-time employees, including independent contractor real estate agents

The correct answer is fifteen or more full-time employees, including independent contractor real estate agents.