Chapter 5 Quiz Flashcards
A listing licensee receives three offers on a listing. The seller told the licensee that the seller would not sell to buyers who are members of a specific ethnic group. One of the offers if from a buyer who is a member of that group. What must the licensee do?
A. Submit the highest offer without regard to which buyer submitted it.
B. Submit all three offers.
C. Withhold the buyer’s offer according the the instructions of the seller.
D. Submit the offer that is in the seller’s best interest.
B. Wis. Stat. 106.5(2)(a) Open Housing: It is unlawful for any person to discriminate by refusing to sell, rent, finance or contract to construct housing or by refusing to negotiate or discuss the terms thereof.
What is is called when a licensee represents that a change may occur in a neighborhood based on who is or might be buying property in the neighborhood?
A. Suburban flight
B. Redlining
C. Steering
D. Blockbusting
D. Blockbusting is the practice of exploiting prejudices and creating fear of a decline in real estate values to induce homeowners to sell their properties at a low price.
What is the act of an insurance company refusing to issue policies on properties in specific neighborhoods?
A. Redlining
B. Steering
C. Drafting
D. Blockbusting
A. Redlining is a lender’s refusal to lend or an insurance company’s refusal to insure property within a geographic area on the belief those loans or insurance policies in the area would be of high risk.
What should a supervising broker do if a licensee steers a member of a protected class to view properties in a particular neighborhood?
A. Educate the licensee about housing discrimination.
B. Congratulate the licensee on helping the buyer in the search.
C. Nothing as long as the buyer is satisfied with the services.
D. Trust that the licensee has discerned the buyer’s preference.
A. Steering is the illegal practice of channeling home seekers to or away from certain areas.
Which of the following is NOT a basis for housing discrimination?
A. Gender
B. National origin
C. Race
D. Financial limitations
D. Financial limitation is not a protected class.
A buyer asks a licensee about the racial demographics of a neighborhood high school. Can the licensee provide this information?
A. The licensee can only provide this if using statistical information provided by the school board.
B. No, providing this information violates fair housing law.
C. Licensees must make this information readily available to all consumers.
D. Only if the licensee provides the information to all buyers looking in that school district.
B. A licensee should not distribute materials and statistics containing data or information relating to protected classes. The licensee can refer the buyer to local agencies for this information.
Can a licensee refusing a listing if a seller directs the licensee to only present offers from Christian buyers?
A. The licensee can refuse the listing if the licensee is not a practicing Christian.
B. Yes, because only presenting offers from a particular religious group violates fair housing laws.
C. A licensee cannot refuse because the seller’s religious practices are protected under fair housing law.
D. No, because the seller could claim the refusing the listing is discriminatory.
B. Licensees may not discriminate against, deny equal services to, or be a party to any plan or agreement to discriminate against any person in any manner unlawful under applicable federal, state, or local fair housing laws.
What must a licensee do according to fair housing laws?
A. Never turn down a listing from a member of a protected class.
B. Post a fair housing poster in the firm’s office.
C. Treat all prospects equally.
D. Show all houses to all prospects.
C. Many buyer and sellers may be unaware of fair housing laws and may intentionally or unintentionally violate them through their actions. A firm and its licensee may have to educate buyers and sellers to make sure they are complying with fair housing laws. A firm must comply with fair housing laws to provide equal opportunity to housing for all people.
Which of the following can a licensee do without violating fair housing laws?
A. Refuse to work with buyers using government grants for down payments.
B. Offer certain services only to consumers 55 and older.
C. Provide more services to married couples.
D. Not take a listing from a discriminatory seller.
D. If a seller gives discriminatory instructions to a licensee, the licensee does not need to and probably should not work with that seller.
Which of the following is NOT prohibited discrimination?
A. Charging a borrower a higher interest rate based upon the location of the property.
B. Asking the age of a person seeking housing for older persons.
C. Asking a persons’s age when discussing the construction of residential housing.
D. Asking a person’s gender when discussing a lease for an apartment.
B. See Equal Opportunity Law and Equal Rights Section Wis. Stat. 106.04(2)(a)(b)(e): It is unlawful for any person to discriminate by refusing to sell, rent, finance, or contract to construct housing, by refusing to discuss the terms thereof, by refusing to permit inspection of by exacting different or more stringent price, terms, or conditions for the sale, lease, financing, or rental of housing, or for a person in the business, of insuring against hazards, by refusing to enter into, or by exacting different terms, conditions, or privileges with respect to a contract of insurance against hazards of a dwelling. It is permissible for an owner or an agent to require a person seeking housing for older persons to supply age.
What should a licensee do if a member of a religious group asks to see property in a neighborhood that the licensee knows is predominately inhabited by members of a different religious group?
A. Explain to the buyer that showing homes in that neighborhood would be an example of prohibited steering.
B. Show the homes as requested.
C. Hope that the buyer buys in the selected neighborhood so the licensee can “break into” that market and garner show new listings.
D. Show homes in the selected neighborhood and show homes in neighborhoods more closely aligned with the buyer’s religious practices.
B. If a buyer identifies a neighborhood when looking for a property, a licensee should show the buyer the property of homes in the identified neighborhood.
Which property transaction is regulated by Wisconsin fair hosing laws?
A. The lease of a vacant warehouse.
B. An exchange of a factory building.
C. The sale of a retail store.
D. A rental of a single-family home.
D. Wisconsin fair housing laws govern property transactions involving dwellings.
Who pays for auxiliary aids and services for consumer in a real estate office.
A. The listing firm if the buyer is a customer.
B. The firm if the buyer signs an agency agreement.
C. The firm.
D. The buyer if the buyer does not sign a buyer agency agreement.
C. The American with Disabilities Act (ADA) requires places of public accommodation to provide equal access and services to persons with disabilities. A real estate office is a place of public accommodation.
Who is responsible for ensuring compliance with fair housing law in a real estate transaction?
A. The buyer
B. The seller
C. The public
D. The licensee
D. Licensees may have to educate parties about fair housing law, and if a licensee is working with a party who will not comply with fair housing law, the licensee should consider refusing to continue in the transactions.
How much does a licensee’s intent affect a person’s ability to make a discrimination complaint against the licensee?
A. The complainant must show that the licensee’s intention caused harm.
B. Discrimination must be intentional to be grounds for a complaint.
C. The licensee’s intent does not matter if discrimination occurred.
D. The licensee’s intent must have prevented a person’s access to housing.
C. A licensee does not need to intent to discriminate for a violation to occur. If a person perceives a licensee’s actions as discriminatory, that is sufficient basis for a potential finding of discrimination and a violation of air housing law.
