Chapter 17 Flashcards
Fair Housing
Impact of Fair Housing Violations
Minimal question on exam
www.fairhousinginstitute.com
Civil and criminal violation
Disciplinary action against a licensee
Aplies to all parties ina transcation
For exam memorize this one with date
1866 Civil Rights Act
For exam memorize this one with date
Illigal to discrimintae on the basis of race - NO EXCEPTIONS
1968 Fair Housing Act
(race, color, religion, national origin)
IIlegal to discriminate in:
* sale or renting
* advertising
* financing
* brokerage services
* appraisal
Linden Johnson
1974 Gender Added
Sex
1988 Amendments
- Handicapp
- Familial Status
Marital status and age are not protected classes under fair housing
7 Protected Classes Under Fair Housing
- Familial Status (kids under age of 18)
- Race
- Sex
- Handicapp
- Color
- Religion
- National Origin
TP
Prohibited Practices
Need to know for test
Blockbusting
Steering
Redlining
TP
Prohibited Parctices: Blockbusting
On test
Relates to SELLER.
ex: “Move now while you can before these xxx people move in”. Cannot say that.
Prohibited Practices: Steering
Relates to BUYERS.
Directing buyers to or away from a neighborhood based on a pprotected class.
ex: “You should live in this neighborhood becasue of xxx”.
Prohibited Practices: Redlining
Changing loan terms and conditions based on ethnic or racial makeup
Lender or mortgage industry violation
ex: chargiing higher rates in a certain area of protected class
Excusions from Fair Housing Compliance
- Rental of rooms - owner occupied (1-4 families).
ex: can say I do not want famils with children, handicap, etc. Does NOT apply to RACE. - Dwellings for religious organizations
- Private clubs: memeber of golf club
- FSBO excluded from all EXCEPT for RACE
- Cannot own more than 3 properties
- No broker involved
- Cannot use discriminatory advertising
- (does not apply to NC. In other states if not broker is involved or you own 3 or less you can pick and choose who lives in your property)
Does NOT apply to RACE.
1988
Addion of Disability (handicap)
“any physical or mental imparement that limits a persons abilities”
Assistive Animals
Has to be documented
TP
Accomodation
Expense is on owner or landlord
Need to allow for accomodations
know whos expense
TP
Modification
**Expense of renter
Landlord must allow renter to do at their own expense
ex: install grab bars in shower, ramp, etc.
Can be iin writing or oral
know whos expense
Familial Status (includes pregnant women and also people in process of adoption)
You cannot deny someone housing on the basis that they had or are going to have children
TP
Standard Occupancy
Landlord cannot prohibit children but CAN have reasoonable restrictions to comply with zoninig, etc.
Senior Communities (HOPA)
Do not need to know for test
Senior Community Rules
REsidents 62 or older - 100% of occupied
1 resident 55 and older - 80% of occupied households
Must verify persons age
Must advertose as senior living
Ebnfirced bu HUD
ECOA
Applies ot lenders
Adds 3 more protected classes
Marital status
age
recept of public assisrance
NC Fair Housing Act
No “for sale by owner” exemption
Onwer occupied rentals exempted
NC exempts single sex dormatories
Enforced by NCGRC
TP
Time for Filing Complaints
know for tes
1 year to file
2 year to file private lawsuits
TP
ADA
Mandatory accessibility (parking spaces, zero grade entry, handicap restrooms)
Applies to public and commercial buildings
Home Ownership:
Tax Deductible Expenses
Dollar for dollar you can deduct
* Interest
* Real estate taxes
* Loan discount points (buy down rate)
* Loan origination fees
Primary Residense:
You cannot deduvt insurance
Capital Gains: Definition
Know terminology
What you bought the prooperty for a cost of acquisition (closing sosts)
Adjusted basis: basis + improvements
Amount realized: sales price - closing expenses
Gain: amount realized - adjusted basis
Capital improvements: items that are permanent and will increase the value of the property (new roof, new kitchen, remodle, etc.)
Capital Gains: Exclusions
Own and occupy 2 out of the last 5 years (does not need ot be consecutive)
Gains are excluded from taxation
* $250,000 single
* $500,000 married
Capital Gains: Non-Owner Occupied Property
Non-Owner Occupied
If owner DID NOT live in property 2 out of last 5 years
the gain is taxable
* Short term gain (12 months or less)
Capital gain tax is considered at ordinary income tax rate
* Long term gain (more than 12 months)
Capital gain tax is 15%
1031 Tax Exchange
Investors may exchange properties
* Avoids immediate tax
* “Like kind” more real estate
* Must use and axchanger
* Holds and reinvests proceeds
* Strict timelines involved
* Cannot touch money
The “Exchanger: a company that holds the money you gain to reinvest. Closing attorney will know how to do this.
