Chapter 19: State and Federal Real Estate Laws

Question 1

Blockbusting

Answer 1

The illegal practice of inducing homeowners to sell their property by making misrepresentations regarding the entry or prospective entry of minority persons in order to cause a turnover of properties in the neighborhood; discriminatory acts against sellers

Question 2

Familial Status

Answer 2

Refers to the status of a pregnant woman or a family with children under 18 years of age

Question 3

Handicap Status

Answer 3

Federal or state status for an individual unable to perform mental or physical functions under normal conditions

Question 4

Property Report

Answer 4

A brief summary of a subdivision property

Question 5

Public Accommodation

Answer 5

A hotel, motel, or other facilities accessible to the general public

Question 6

Redlining

Answer 6

A lending institution’s illegal refusal to make mortgage loans in certain areas

Question 7

Subdivision

Answer 7

A tract of land partitioned into lots for homes or other uses and improved by roads, water and sewage systems, etc.

Question 8

Steering

Answer 8

The illegal practice of directing buyers to or from certain neighborhoods based on minority status; prohibited by federal, state, and local fair housing laws

Question 9

Directing a member of a protected class to or from a property based upon discriminatory reasons is known as:

Answer 9

Steering

Question 10

Landlord Larry accepts a $1,000 damage deposit from a tenant. Larry may lawfully handle the deposit in all of the following ways, except:

    A     Place the deposit in a separate non-interest 
            bearing escrow account
B	Place the deposit in a separate interest 
            bearing account and pay the tenant either 
            5% simple interest or 75% of the interest 
            actually earned
C	Place the money in his personal account and 
            pay the tenant 5%
D	Co-mingle the deposit with his own funds 
            and post a $1,000 surety bond with the clerk 
            of court and pay the tenant 5% simple 
            interest

Answer 10

C Place the money in his personal account and

pay the tenant 5%

Question 11

The Civil Rights Act of 1866 was upheld by which U.S. Supreme Court case?

Answer 11

Jones v. Mayer

Question 12

If Landlord Larry wants to impose a claim on the damage deposit, he must notify the tenant within how many days after the lease is over?

Answer 12

30 days

Question 13

Which agency is responsible for prosecuting alleged violations of the Fair Housing Act of 1968?

Answer 13

Housing and Urban Development

Question 14

Racial discrimination was outlawed by the:

Answer 14

Civil Rights Act of 1866

Question 15

For Sale By Owners, although typically not covered by the Civil Rights Act of 1968, are still prohibited from racial discrimination under the:

Answer 15

Civil Rights Act of 1866

Question 16

Broker Wang has a listing on a home, but the owner is instructing Wang not to sell the property to “anyone of color”. How should Wang handle this situation?

Answer 16

Explain that the instruction is illegal and refuse to follow the instruction or withdraw from the listing relationship

Question 17

All of the following are protected classes covered by the Civil Rights Act of 1968, except:

Answer 17

Age