Chapter 12 - Fair Housing Flashcards
Blockbusting, steering, and redlining are specifically prohibited acts under the:
Federal Fair Housing Act
(While embraced within other legislation, the federal Fair Housing Act specifically prohibits blockbusting, steering, and redlining)
The Fair Employment and Housing Act prohibits discrimination by the following categories of persons:
Owners, lessors, real estate agents, and lenders.
(The Fair Employment and Housing Act prohibits any owner, lessor, assignee, managing agent, real estate licensee, financial institutions, or business establishment from all housing discrimination based on race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income or disability)
The federal Fair Housing Act applies to all of the following residential real estate transactions, EXCEPT:
The sale or rental of a single-family home by its owner if not represented by a real estate agent and no discriminatory advertising is used.
(The federal Fair Housing Act does not apply to the sale or rental of a single-family home by its owner provided that the owner does not own more than three such homes, no real estate broker or agent is employed in the transactions, and no discriminatory advertising is used)
A lender can refuse to make a loan to a person:
of Asian ethnicity whose credit history indicates financial irresponsibility.
(A lender may refuse to make a loan to anyone not creditworthy. A lender refusing to make loans because of a property’s location in a certain neighborhood due to the racial or ethnic composition of the neighborhood is guilty of redlining. Both an illiterate person and a person with AIDS are member of protected classes and cannot be refused based solely upon their disabilities)
A listing agent is not subject to the Fair Housing Act if:
None of the above
(Any transaction involving a real estate licensee is subject to fair housing laws)
The federal Fair Housing Act prohibits discrimination on the basis of all of the following, EXCEPT:
Sexual orientation
(The protected classes under the federal Fair Housing laws are race, color, national origin, religion, sex, familial status, physical or mental disability, source of income, and marital status. Sexual orientation is not a protected class under federal law)
Which of the following people are protected against discrimination due to a disability?
- A person with AIDS
- A blind person
(Both a blind person and a person with AIDS are protected under the disability definition of the laws. A current abuser of controlled substances is not protected from discrimination)
A real estate agent who directed prospective buyers to a particular neighborhood comprised of like national origin would be guilty of __________ .
Steering
(Steering occurs when prospective buyers or tenants are directed to or away from certain neighborhoods based on their race, religion, national origin, or ancestry)
The federal Fair Housing Act is enforced by the:
Department of Housing and Urban Development (HUD).
(HUD enforces FHA through its Office of Fair Housing and Equal Opportunity)
Which one of the following statements is TRUE?
Any state or local governmental body may enact fair housing laws to include additional protected classes of persons.
(Any governing body, e.g., state, county, city, etc. may impose more stringent anti-discrimination laws, never less stringent, which must be adhered to by all those affected entities within the jurisdiction imposing the more stringent laws)
Under the Americans With Disabilities Act (ADA), which of the following statements is FALSE?
An owner of an existing commercial building will always be required to adapt the building to accommodate all disabled persons, regardless of the cost to do so.
(An existing owner of a commercial building will only be compelled to make financially practical alterations)
Inducing owners to sell by predicting future loss of value due to members of a minority race moving into a neighborhood is known as __________ .
Blockbusting
(The practice of blockbusting is based upon encouraging people to sell their homes by claiming that the character of the neighborhood is changing due to the entry of a protected class into the neighborhood)
A California real estate licensee must be familiar with and adhere to the most stringent anti-discrimination laws in the sale of real estate. These laws are found in the:
California anti-discrimination laws
(California has enacted more stringent anti-discrimination bodies of law that must be adhered to by all)
ECOA was enacted to prevent discrimination:
by lenders in consumer credit transactions of individuals seeking funds for personal, family, or household purposes.
(ECOA is the Equal Credit Opportunity Act, which prevents lenders from discriminatory procedures in consumer credit transactions for individuals seeking funds for personal, family, or household purposes)
Under California law, a landlord can refuse to rent to a prospective tenant because:
None of the above
(All of the persons are members of protected classes)
