Ch 6. Fair Housing Laws and ADA Flashcards
What does it mean that unless a building or community qualifies as housing for older persons, it may not discriminate based on familial status?
It may not discriminate against families in which one or more children under 18 live with one of the following persons:
A parent
A person who has legal custody of the child or children
The designee of the parent or legal custodian, with the parent or custodian’s written permission
What are three actions permitted by a landlord when renting to families?
Reject applicants with poor credit (sales or rentals).
Implement reasonable health and safety rules to protect all residents, including children, from harm.
Place reasonable restrictions on the number of occupants in the rental unit, but not specifically limit the number of children.
If a person feels like he or she has been discriminated against, how long does that person have to file a complaint?
Any person who believes he or she has been discriminated against may file a complaint with HUD within one (1) year of the alleged act. HUD can also initiate a complaint on its own.
What group is considered a protected class in Pennsylvania but is not a federally protected class?
Pennsylvania considers age (40 and older) a protected class.
What is the definition of discriminatory advertising?
Discriminatory advertising is defined as advertising that indicates a preference, limitation or discrimination based on race, color, religion, handicap, sex, familial status, or national origin.
In general terms, what kind of advertising would be considered acceptable and what would be considered discriminatory?
Any advertising that describes the property would be considered acceptable, while advertising that describes buyers could be considered discriminatory
Give four examples of words or phrases that would be considered discriminatory, and three that would not, with regard to handicap when writing an ad. (See page 20 for other correct answers.)
Discriminatory - no wheelchairs, able-bodied persons only, no deaf, or no handicapped parking
Non-discriminatory - fourth-floor walk-up, walk-in closets, wheelchair ramp
When doing newspaper advertising, how could you avoid an impression of racial steering?
Use a wide variety of newspapers, not just the local or neighborhood paper.
List three examples of discrimination in real estate.
Refusing to sell, rent, or negotiate with any person who is a member of a protected class
Changing terms, conditions or services for different individuals as a means of discrimination
Stating or advertising that a property is restricted
Telling persons that a property is not for sale or rent when it is
Denying membership in any multiple listing service (MLS) or any broker’s organization
Using discriminatory advertising
What is steering?
Steering is defined as channeling homebuyers toward or away from homes in certain neighborhoods in order to preserve or alter the makeup of that neighborhood.
How could a licensee avoid any suggestion or charges of illegal steering?
Licensees should consistently gather the same information from every potential buyer and then select homes to show based on the clients’ needs.
What is blockbusting?
Blockbusting is defined as making a profit by inducing owners to sell by telling them that persons of a protected class are moving into the neighborhood which will have detrimental results, such as the lowering of the property values, an increase in criminal behavior, or a decline in the quality of the schools in the area.
If a client asks a licensee’s opinion about a home or neighborhood, how should the licensee respond?
The licensee can respond with factual statements based on features of the home or neighborhood. However, it is illegal to voice an opinion based on race, religion, color, national origin, sex, handicap, familial status, or any of the protected classes.
What information should a listing agent discuss with a seller before taking the listing?
Before even entering into a listing agreement, a licensee should explain the importance of fair housing compliance and secure a commitment to this from the seller before agreeing to list the house.
What must an agent tell a seller if he or she asks about the color, religion, ethnicity, familial status, or other “protected class” characteristics of the buyer?
The agent should say it is inappropriate to give out such information.
How should an agent respond if a seller says he or she wants to wait for another offer because the buyers with the current offer aren’t a right fit for the house?
The agent should ask why the seller doesn’t think the buyer is a good fit. It’s important for the agent to know if it is based on something discriminatory or not.
What is testing?
Testing is a simulated housing transaction designed to obtain evidence of differential treatment based on an individual’s protected class status.
How can testing be beneficial?
Testing, coupled with good documentation and record keeping, can clearly demonstrate a real estate agency’s innocence when faced with a fair housing complaint.
Because the Supreme Court has ruled testing is legal, how should agents view the practice of testing in real estate?
Testing for fair housing compliance must be recognized as a risk and a cost of doing business.
What is the best way to avoid fair housing complaints?
Treat everyone the same
What is the mandate of the American with Disabilities Act?
ADA mandates that persons with disabilities have equal access to jobs, public accommodations, government services, public transportation, and telecommunications.
Why is it important for licensees to understand the Americans with Disabilities Act?
Brokers need to evaluate whether they need to make physical changes to their office space to comply with the law.
Licensees should inform their commercial and investor clients of the need to have their leases professionally evaluated and their offices inspected for compliance.
Who is affected by Title III?
Title III affects most businesses that provide goods or services to the public, commercial facilities that affect commerce and private entities that offer certain educational courses.
What are the civil penalties a court can award in a discrimination lawsuit?
Up to $50,000 for a first violation and $110,000 for any subsequent violation
What term describes when HUD attempts to resolve a complaint by getting assurance from the person against whom the complaint was filed that he or she will remedy the alleged violation?
Conciliation
In Pennsylvania, the federal exemptions apply to:
federally-assisted, privately-owned housing.
In discrimination cases, who hears evidence and decides if discrimination occurred?
An administrative law judge
Steering is:
the practice of directly or indirectly channeling customers away or toward homes and neighborhoods.
How much time does a person have to file a discrimination complaint with HUD?
1 year from the date of the alleged act
When encountering a tester, which of the following should be avoided?
Try to frustrate the tester.
What does the term “readily achievable” mean in regards to ADA barrier removal?
Based on the size and resources of the business
What Act added sex to the list of protected classes in 1974?
The Housing and Community Development Act
Which of the following is NOT prohibited under the Fair Housing Act?
Fiduciary duties
In what landmark case did the Supreme Court prohibit racial segregation of public schools?
Brown v. Board of Education
Title VIII of the Civil Rights Act of 1968 is also known as:
the Fair Housing Act.
Cases involving testers:
hold the same weight as other cases of housing discrimination.
The best rule to avoid fair housing issues is to:
treat everyone the same.
Who can be held liable for violation of fair housing laws relating to the listing and sale of a home?
Both the seller and the real estate professional
One similarity between Fair Housing Laws and the Americans with Disabilities Act is they both:
address reasonable accommodations and modifications.
The civil penalty for a first time ADA violation suit by the Attorney General will not exceed:
$50,000.
To help avoid appearing discriminatory, newspaper ads should:
have the Equal Opportunity logo or slogan.
The Supreme Court has ruled that testing is:
legal.
Who is allowed to initiate actions for alleged violations of the Americans with Disabilities Act?
The attorney general and private citizens
Most real estate licensees do not realize it is illegal to:
treat families with children differently than families without children.
Which of the following phrases would usually be considered discriminatory advertising?
Females or males only
Why are the phrases “non-smoking” or “sober” acceptable to use and not considered discriminatory?
Because they describe conduct that is required of residents
The general rule for safe advertising is words used should describe:
the property, not the buyer.
What is defined as advertising that indicates a preference, limitation or discrimination based on race, color, religion, handicap, sex, familial status or national origin?
Discriminatory advertising
When HUD receives a complaint, within how many days will it start an investigation?
100
How often do real estate professionals face fair housing issues?
Daily
Which Act mandates that persons with disabilities have equal access to jobs, public accommodations, government services, public transportation, and telecommunications?
Americans with Disabilities Act
Which of the following is an example of discriminatory advertising?
White family home
A tester will typically ask:
very specific questions.
What should a real estate professional do if it appears a seller is looking for a non-minority buyer?
The agent should advise the seller of his or her legal and contractual obligation not to discriminate.
Who enforces fair housing laws?
The Department of Housing and Urban Development
One similarity between Fair Housing Laws and the Americans with Disabilities Act is they both:
address reasonable accommodations and modifications.
What term describes the act of restricting the number of loans in certain areas of a community because its racial or ethnic makeup?
Redlining
If a licensee tells a person that a property is not for sale or rent when it actually is, this is considered:
discrimination in real estate.
What describes the channeling of home buyers toward or away from homes in certain neighborhoods in order to preserve or alter the makeup of that neighborhood?
Steering
To help avoid appearing discriminatory, newspaper ads should:
have the Equal Opportunity logo or slogan.
Title III of the ADA prohibits discrimination in:
places of public accommodation.
Who can be held liable for violation of fair housing laws relating to the listing and sale of a home?
Both the seller and the real estate professional
If a fair housing case goes to an administrative hearing with HUD, who litigates the case for the complainant unless requested otherwise?
HUD attorneys
If a seller chooses not to follow fair housing laws the agent should:
refuse the listing.
Who can file a discrimination complaint?
Anyone
An example of discrimination in lending is:
giving different terms for loans, such as interest rates or fees.
Who enforces fair housing laws?
The Department of Housing and Urban Development
Cases involving testers:
hold the same weight as other cases of housing discrimination.
Which of the following phrases would be considered discriminatory?
This two-bedroom condominium is just too small for you and your three children.
What does the term “readily achievable” mean in regards to ADA barrier removal?
Based on the size and resources of the business
What describes the channeling of home buyers toward or away from homes in certain neighborhoods in order to preserve or alter the makeup of that neighborhood?
Steering
The Supreme Court has ruled that testing is:
legal.
Questions about local schools or the ethnicity in a certain area should be answered by:
experts.
What should a real estate professional do if it appears a seller is looking for a non-minority buyer?
The agent should advise the seller of his or her legal and contractual obligation not to discriminate.
If an agent is faced with questions outside the realm of his or her expertise it is best for the agent to refer such questions to:
an expert.
Which of the following is NOT allowed a Fair Housing Act exemption?
A privately owned house where a broker is used
If a seller refuses to consider an offer because the prospective buyer is a member of a protected class the listing should be:
terminated
Which of the following is an example of a reasonable accommodation?
Allowing a guide dog to reside with an occupant who has a visual disability
What can an agent legally say if a buyer asks his or her opinion about a neighborhood?
The agent can make factual statements about the neighborhood’s features, such as closeness of shopping or a park.
Which Act mandates that persons with disabilities have equal access to jobs, public accommodations, government services, public transportation, and telecommunications?
Americans with Disabilities Act
Which of the following is an example of discrimination in lending?
Discriminating when doing a property appraisal
In discrimination cases, who hears evidence and decides if discrimination occurred?
An administrative law judge
Title VIII of the Civil Rights Act of 1968 is also known as:
the Fair Housing Act.
When HUD receives a complaint, within how many days will it start an investigation?
100
Why is it important for investors and commercial clients to understand the impact of the ADA?
Owners of small businesses that serve the public must remove physical barriers that are readily achievable.
A tester will typically ask:
very specific questions.
Licensees can get in trouble when they:
try to “size up” their clients’ needs.
Discriminatory misrepresentation involves:
concealing available properties, representing they are not for sale or rent, or changing sales terms for the purpose of discrimination.
