Chapter 8 Flashcards
3 main elements of Fraud
- Reliance
- Intention
- Damage or the loss of something of value.
Reliance
Did the consumer have the right to rely on the information or fact? If a statement is made by a real estate professional is actionable, it should be relied upon as fact.
Broker fees
fees are always negotiable between a broker and his or her client. Commissions are not set by the Texas Real Estate Commission or the state of Texas. For a group of brokers to agree upon a set commission would be a violation of the Sherman Antitrust Act./ written agreement and not included on a purchase agreement.
The Federal Fair Housing Act
was established under the Civil Rights Act,
which prohibited discrimination based on race, color, religion, or national origin.
The law also gives the right for investigation and prosecution to the Department of Housing and Urban Development. HUD
Title VIII of the Civil Rights Act is also known as the Fair Housing Act (of 1968).
An amendment in 1974
a person’s sex as a protected class.
An amendment In 1988
familial status and handicap persons were added. Familial status refers to the relationship of people in a family (children and parents), and handicap persons are those with physical conditions that impair them, including those with AIDS and mental disorders.
U.S. Code, Title 42, Chapter 21, Subchapter I, (1982)
All citizens of the United States shall have the same right, in every State and Territory, as is enjoyed by white citizens thereof to inherit, purchase, lease, sell, hold, and convey real and personal property.
An alleged violation of the Civil Rights Act must be filed within one year of the action. T
There are two years to file a federal civil court action. Civil penalties are $10,000 for the first violation and $50,000 for any subsequent violation.
Tax Reform Act of 1986
- To eliminate the tax loopholes and increased incentives to induce homeownership rather than rental housing by increasing the Home Mortgage Interest Deduction.
- The Act has changed the aspects of rent, property taxes, and mortgage interest payments to favor homeownership while eliminating most of the investment incentives for rental housing.
Foreign Investment in Real Property Tax Act (FIRPTA)
requires that any foreign investor in real estate in the United States declare that he or she is not a U.S. citizen. If he or she is not a U.S. citizen the taxes owed must be taken out of closing to pay the government.
What ACT designed to protect buyers from misrepresentations, fraud and abuse in the sale and/or lease of land ?
The Interstate Land Sales Full Disclosure Act
Megan’s Law
requires that states initiate sex offender registries and crimes against children registries.
This is applicable in Texas via The Texas Sex Offender Registration Program which requires a sex offender to register with the local law enforcement authority of the city or county he or she resides in.
The law indicates that information can be placed on the Internet and then obtained by the public.
Civil Rights Act of 1866
Act prohibiting discrimination based on race or color allowing an aggrieved person to seek a civil suit in federal court. The act was expanded to include religion and national origin.
Jones v. Alfred H. Mayer Co., 392 U.S. 409 (1968)
A U.S. Supreme Court case which held that Congress could regulate the sale of private property in order to prevent racial discrimination.
Texas Sex Offender Registration Program.
Texas program requiring sex offenders to register with the local law enforcement authority of the city or county he or she resides in.
Environmental Protection Agency (EPA)
A federal agency established in 1970 to protect human health, air, water, land and the environment.
