Chapter 20

Question 1

Why is transparency important in property disclosures?

Answer 1

It allows buyers to make informed decisions and builds trust

Question 2

blockbusting

Answer 2

practice
of inducing property owners
to sell or rent their homes by
suggesting that the racial
composition of the
neighborhood is changing,
which could decrease
property values

Question 3

discrimination

Answer 3

refers to the
unfair treatment of
individuals or groups based
on characteristics such as
race, religion, gender, or
disability.

Question 4

fair
financing
laws

Answer 4

Fair financing laws are
regulations that prohibit
discrimination in lending
practices based on factors
such as race, religion,
gender, or ethnicity

Question 5

fair
housing
laws

Answer 5

regulations that prohibit
discrimination in housing
based on factors such as
race, color, religion, national
origin, sex, familial status, or
disability.

Question 6

Jones
v.
Mayer

Answer 6

landmark
U.S. Supreme Court case in
1968 that ruled that racial
discrimination in the sale or
rental of property violates the
Civil Rights Act of 1866.

Question 7

misrepresentation

Answer 7

occurs
when false or misleading
statements are made about a
property or transaction.

Question 8

redlining

Answer 8

practice of
denying or limiting financial
services, such as mortgage
loans or insurance, to
residents of certain
neighborhoods based on
their racial or ethnic
composition

Question 9

steering

Answer 9

occurs when real
estate professionals direct
buyers or renters to or away
from certain neighborhoods
or properties based on their
race, ethnicity, or other
protected characteristics.

Question 10

unequal
services

Answer 10

providing different levels of
service or treatment to
individuals or groups based
on protected characteristics.

Question 11

What was the primary reason for enacting the Fair Housing Act in 1968?

Answer 11

To prohibit discrimination in housing based on race, color, national origin, or religion

Question 12

John Dunbar hires Betty Jones to sell his house, with the condition that he will not be the first one in the neighborhood to sell to members of a certain ethnic group. What should Betty do about this condition?

Answer 12

Inform Dunbar that the condition is illegal and that she cannot comply with it

Question 13

Which of the following actions is allowed under federal fair housing laws?

Answer 13

The owner of a duplex who resides in one of the units refuses to rent the other unit to a non-Christian

The Fair Housing Act would exempt the owner in this situation because it involves rental of an apartment in a 1-4 unit building where the owner is also an occupant and there is no discriminatory advertising

Question 14

What is the purpose of a home warranty?

Answer 14

Protect the homeowner against costs arising from major system failures

Question 15

An agent persuades a family to put their house on the market because ethnic minority families are beginning to move into the neighborhood. This is an example of

Answer 15

blockbusting

Question 16

An agent does not like a particular minority buyer, and is very short with the person, refusing to engage in lengthy conversation or show him any properties. A second minority party visits the office the next day. The agent is very forthcoming, and shows the person five prospective properties. This agent could be liable for

Answer 16

providing unequal services

Question 17

What is the significance of the Jones v. Mayer Supreme Court decision?

Answer 17

It provides that anyone seeking to buy or rent a residential property who feels victimized by racial discrimination may take legal action under the 1866 Civil Rights Act

Question 18

The fair housing law that first protected people against discrimination in housing based on race was the

Answer 18

Civil Rights Act of 1866

Question 19

Under federal fair housing laws, the owner of a ten-unit apartment building may legally require families without children to pay the same security deposit that families with children must pay

Answer 19

True

Question 20

Which of the following laws or rulings extended discrimination to include gender, handicapped status, and family status?

Answer 20

the Fair Housing Amendments Act of 1988

Question 21

What can help real estate agents align their behavior with their conscious values and ensure fair treatment of all clients?

Answer 21

Developing and following protocols to ensure equal treatment

Question 22

Exemptions to Title VII

Answer 22

a privately owned single-family home where no broker is used and no discriminatory advertising is used, with certain additional conditions

rental of an apartment in a 1-4 unit building where the owner is also an occupant, provided the advertising is not discriminatory

facilities owned by private clubs and leased non-commercially to members

facilities owned by religious organizations and leased non-commercially to members, provided membership requirements are not discriminatory

Question 23

What does the Federal Trade Commission (FTC) prohibit under Section Five of the FTC Act

Answer 23

Unfair or deceptive acts or practices in or affecting commerce