Chapter 7 - Federal and State Housing Laws Flashcards by Alexandria Takacs

What does the Civil Rights Act of 1866 prohibit?

Any type of discrimination based on race in any real estate transaction (sale or rental)

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What protected classes were created with the Fair Housing Act?

Race
Color
Religion
Sex
Handicap status (mental or physical)
Familial Status (families with children younger than 18 and pregnant women)
National Origin

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What types of housing does the Fair Housing Act cover?

Single family homes

Multifamily housing

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What activities are prohibited under the Fair Housing Act?

Steering
Blockbusting
Redlining
Refusing to rent to, sell to, negotiate with, or deal with a member of a protected class
Quote different terms or conditions for buying or renting
Advertise that housing is available only to people of a certain race, color, religion, sex, national origin, handicap status, or familial status
Deny membership in or use of any real estate services, broker’s organization, or multiple listing service
Make false statements concerning the availability of housing for inspection, rent, or sale

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What is steering?

Channeling protected-class homeowners away from areas that are not mixed with that class into areas that are

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What is blockbusting?

Using the entry, or rumor of the entry, of a protected class into a neighborhood to persuade owners to sell

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What is redlining?

Denying loans or insurance coverage by a lender or insurer that present different terms or conditions for homes in certain neighborhoods

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What does the Americans with Disabilities Act of 1990 do?

Remove barriers that prevent qualified individuals with disabilities from enjoying the same opportunities that are available to persons without disabilities

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When were the Truth-in-Lending Acts established and for what purpose?

They were passed in 1968 and went into affect in 1969
The overall purpose of these laws is to inform consumers of exact credit costs before they make a purchase so they may compare various credit terms and costs

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Who implements the Truth-in-Lending act?

The Federal Reserve Regulation Z

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What is Regulation Z?

Regulation Z applies to credit associated with residential mortgage loans; the law requires that lenders disclose the annual percentage rate of interest and finance charges imposed on consumers within three business days of accepting a loan application

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What are trigger terms and what do they include?

Certain credit terms or specific financing information creditors may include in advertisements that require more information; they include:
The amount or percentage of any down payment
Number of payments
Period (term) of repayment
Amount of any payment
Amount of any finance charge

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What is the Equal Credit Opportunity Act?

It ensures that financial institutions and firms engaged in extending credit will make credit available with fairness and without discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or receipt of income from public assistance programs

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What is the Real Estate Settlement Procedures Act?

RESPA is a consumer protection law intended to ensure that buyers are informed regarding the amount and type of charges they will pay at closing

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What are the RESPA disclosures and when must they be disclosed?

Special information booklet
Good Faith Estimate
Servicing Disclosure Statement
They must be disclosed at the time of the loan application or within three business days

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What does the Special Information Booklet include?

Consumer information regarding closing services (required for purchase transactions only) the borrower may be charged for at closing (common charge of a transaction)

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What is the Good Faith Estimate?

Listing the charges the buyer is likely to pay at closing

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What is the Servicing Disclosure Statement?

Discloses to the borrower whether the lender intends to service the loan or transfer it to another lender or servicing company

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What is the HUD-1 settlement statement?

Shows all of the charges imposed on the borrower and the seller and any credits due the borrower and the seller; it itemizes the actual closing costs of the loan transaction
It is required by RESPA

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What is the Florida Fair Housing Act?

Provide for fair housing throughout the state

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What is the Growth Management Act?

Requires that cities and counties prepare a comprehensive plan of land use; the act also contains a currency provision that requires that the infrastructure be in place before new development can begin
It makes it mandatory that a developer has his infrastructure in place before starting to build

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What is the purpose of the Florida Residential Landlord and Tenant Act?

To place Florida landlords of residential property and their tenants on a more equitable basis in their legal relationship

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What are the three ways a landlord is obligated to account for security deposits or advanced rent?

Hold the money in a separate noninterest-bearing Florida bank account and not commingle, hypothecate, that is, pledge as security for a debt, or use any such funds until due to the tenant
Hold the money in a separate interest-bearing Florida bank account and pay the tenant at least 75% of any annualized average interest rate or 5% per year simple interest, and not commingle, hypothecate, or use any such funds until due to the tenant
Post a surety bond with the clerk of the circuit court in the county in which the rental property is located in the total amount of the security deposits and advance rents or $50,000, whichever is less, and pay the tenant 5% per year simple interest

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What are the landlord’s obligations to tenants?

Maintain the rented dwelling unit in a condition that meets all building, housing, and health codes in the community
Provide exterminating services for insect and rodent control
Provide garbage receptacles and pickup
Provide working equipment for heat plus running hot water

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What are a tenant's obligations?

Maintain the rented premises by complying with existing, building, housing, and health codes Maintain the interior plumbing fixtures in a clean and sanitary condition Use reasonable care in the operation of all plumbing, electrical, heating, and air-conditioning equipment Conduct self and make sure guests behave so as not to disturb the peace of other tenants

A tenant may not unreasonably withhold consent for a landlord to enter rented premises from time to time to:

Inspect the premises Make necessary or agreed-on repairs, decorations, alterations, or improvements Supply agreed-on services Exhibit or show the premises

When a tenant vacates a rental unit at the end of a lease agreement, the landlord has 15 days to:

Return the security deposit and any accrued interest, if applicable, provided the landlord does not intend to make a claim on the security deposit

When a tenant vacates a rental unit at the end of a lease agreement, the landlord has 30 days to:

Notify the tenant if the landlord intends to impose a claim on the deposit

What procedure must a tenant follow to terminate an agreement based on the landlord failing to meet his obligations?

1. The tenant first must give written notice to the landlord citing the noncompliance and stating the intent to cancel the agreement if the noncompliance is not corrected 2. Thereafter, the landlord has seven days to correct the noncompliance and resolve the problem 3. If the noncompliance is not corrected within seven days after delivery of the tenant's complaint to the landlord, the tenant is entitled to terminate the agreement

What are the alternative courses of procedure if a tenant does not desire to terminate his rental agreement but does want to correct a landlord's noncompliance?

If the dwelling unit is habitable despite the landlord's failure to comply, the tenant may remain in occupancy of the premises, and the law states that the rent may be reduced by a court in proportion to the loss in rental value caused by the failure to comply If the dwelling unit is rendered uninhabitable owing to the landlord's failure, the tenant may not be liable for the rent during the period the premises remain untenable, if the court agrees with the tenant's assertions

If a tenant fails to comply with a lease or rental agreement, the landlord may terminate the agreement by:

1. The landlord first must give written notice to the tenant citing the noncompliance and stating the intent to cancel the agreement if the noncompliance is not corrected 2. Thereafter, the tenant has seven days to correct the noncompliance and resolve the problem 3. If the noncompliance is not corrected within seven days after delivery of the landlord's complaint to the tenant, the landlord is entitled to terminate the agreement

If the tenant's noncompliance is failure to pay rent when due, what steps must a landlord take to terminate the agreement?

1. The landlord must give the tenant written notice demanding either payment of rent within three days or possession of the premises (the three day time limit begins from the time the notice is posted by mail or delivered at the residence, not including weekends or holidays) 2. The tenant has three days to either pay the rent or surrender the premises. If the tenant continues the default in payment of rent after the allotted days have lapsed, the landlord must resort to formal eviction to have the tenant removed 3. If the tenant vacates the rented premises, the landlord then is required to give the tenant written notice by certified mail of any claim on the tenant's security deposit or advance rent held by the landlord

The federal statute that prohibits a private homeowner from discriminating strictly on the basis of race if selling, renting, or leasing is the:

1866 Civil Rights Act

The law that requires that lenders disclose the annual percentage rate (APR) of interest is the:

Consumer Credit Protection Act (Truth-in-Lending)

The federal 1968 Fair Housing Act prohibits discrimination based on:

Race, color, religion, sex, national origin, familial status, or handicap status

The Truth-in-Lending Act:

Requires disclosure of finance charges as well as annual percentage rates of interest

The Real Estate Settlement Procedures Act (RESPA) was enacted to:

Ensure that buyers are informed regarding the amount and types of expenses to be expected at closing

If requested by the borrower, and to the extent that information is available to the closing agent, the borrower must be provided with which item at least one day before closing?

Uniform Settlement Statement

As part of the preparation for a closing, a listing broker referred a property owner to an appraiser. The appraiser completed the appraisal and charged the owner $250, which was entered on the RESPA settlement statement. The appraiser gave the listing broker $50 for the referral, which the broker accepted. According to RESPA:

Both the broker and appraiser have violated the law

Which transaction is exempt from RESPA requirements?

The sale of a house where the only financing is assumption of an existing loan

The intent of the Florida Landlord and Tenant Act is to:

Make the landlord-tenant relationship more equitable

When security deposits or advance rents are required by a landlord in Florida, such funds:

May be deposited in the landlord's account if he posts a $50,000 surety bond

The sales associates in a real estate office have been instructed to send all of their Spanish-speaking prospects to a new subdivision "beautifully designed with a Spanish flavor". This is an example of:

Steering

A landlord who rents a duplex to two tenants is obligated to provide:

Pest extermination service Garbage pickup service Garbage receptacles

Which disclosure requirement is required to be given to tenants in multifamily buildings of five or more units?

Notice of where deposit is held within 30 days

If a tenant vacates rented premises promptly when a lease or tenancy expires, the landlord MUST

Inform the tenant within 30 days if part of the tenant's deposit will be claimed

If a tenant's rent is current and he notifies the landlord of an intended absence, the landlord:

May not enter the tenant's rented premises without the tenant's consent except in an emergency

How long does a landlord have to correct a noncompliance that is brought to his attention by written notice from a tenant?

Seven days

A landlord must follow designated procedures in evicting a tenant. The first step in a legal eviction is to:

Notify the tenant by formal notice of the landlord's demand for possession by via personal delivery, mail, or attachment to the door

The law that requires that lenders furnish borrowers with a good-faith estimate of closing costs is the:

Real Estate Settlement Procedures Act

Which phrases may not legally be included in an advertisement to sell real estate?

"Beautiful neighborhood rich in ethnic heritage" "Spanish-speaking community" "Quiet neighborhood, no young children please"

Under the Federal Fair Housing act of 1988, which qualifies as a protected class under the definition of familial status?

A family with children 18 years and younger

A savings and loan would be violating the Federal Fair Housing Act by denying a loan to Mr. and Mrs. Happy Buyer because:

They want to live in an area that is considered by the bank to be declining

Under the federal Fair Housing Act, _________ is not a protected class.

Age

The Federal Fair Housing Act provides that a prima facie case against a broker for discrimination has been established after a complaint has been received because the broker has failed to:

Display a HUD Equal Opportunity poster

The illegal practice of directing minorities to areas of the city which are populated by the same race or religion is called:

Steering

Who is exempt under the Federal Fair Housing Acts of 1968?

An owner of no more than three single family dwellings at any one time An owner of an apartment building containing up to four units is exempt if the owner occupies one of the units as a personal residence Religion organizations with properties owned and operated for the benefit of their members only A private club which is not open to the public if the properties that the club does own provides lodging only for the benefit of the membership and not for commercial purposes

An aggrieved party with a Fair Housing violation has how long to file a complaint with the Department of Housing and Urban Development?

1 year

All fall under the description of "handicapped" under the Fair Housing Laws except:

A person in a wheelchair because of a broken leg

A garden-style apartment building was completed in 1992. It has two stories, but does not have an elevator. According to the ADA, which area must meet specifications for handicap accessibility?

Only the first floor

The ______ is a federal civil rights law designed to prevent discrimination and enable individuals with disabilities to participate fully in all aspects of society.

ADA

The purpose and intent of _______ is to incorporate into the law of this state the accessibility requirements of the ADA of 1990, and to obtain and maintain the US Department of Justice certification of the Florida Accessibility Code for Building Construction as equivalent to federal standards for accessibility of buildings, structures, and facilities.

The Florida Americans with Disabilities Accessibility Implementation Act

It is the intent of the Florida Legislature to provide safeguards regulating the disposition of any interest in subdivided lands, including financial operations entered into by companies and persons regulated by the _________, to prevent fraudulent and misleading methods and unsound financing techniques which could detrimentally affect not only remote land purchasers, but also the land sales industry, the public, and the state's economic well-being.

Florida Uniform Land Sales Practices Law

The Civil Rights Act of 1866 prohibits discrimination in real estate transactions based on a consumer's:

Race

A buyer requests to be shown homes only in an Asian area of town. In this case the sales associate should:

Provide the buyer with listings for all areas that meet the buyer's criteria and price, then let the buyer decide where he wants to be shown homes