L7: Federal & State Laws Pertaining To Real Estate Flashcards
Exceptions to when preference or not can be shown in ads involving protected classes
- Ads for 55+ symbol community is saying “adults only/no kids“
- Gender preference stated in roommate seeking situations
What classes are protected in the Fair Housing Act and which year where they enacted?
1968: Race, color, religion, national origin
1974: sex (includes sexual harassment)
1988: Disability & Family Status (includes pregnant women and family with children under 18 and those in the process of obtaining legal custody of a child)
- covers emotional support animals and service animals
NB: Marital status is protected under the 1974 equal credit opportunity act
What is the first federal law that prohibited discrimination in housing based on race and color? When did it become enforceable?
The Civil Rights Act of 1866
It become enforceable after John v. Mayer in 1968
What is a Disability and What does ADA Law cover in Real Estate?
Disability:
- AKA handicap status
- physical or mental impairment, record of impairment or regarded as having impairment (physical, intellectual, mental and AIDS)
- includes recovering addicts but not current addicts
ADA law covers:
- commercial and public accommodations, religious organizations are exempt.
- service animals (not emotional)
Tenant with disability the poses a direct threat to other tenants can be evicted if no other accommodation can resolve the situation
Exemptions to Fair Housing Act
5
1) commercial transactions and non-dwelling buildings (non-residential)
2) single-family residence sold/rented by owner (several requirements)
3) rental of rooms or units in owner occupied property (the Mrs. Murphy Exception)
4) dwellings belonging to religious organizations or private clubs
5) housing for older persons (62+ only, or needs to be 80% 55+)
NB: exceptions 2–5 Do not apply if owner is in the business of renting/selling (3+ transactions in 12 months) or is licensed broker/agent
Fair Housing Complaint Statute of Limitation
1 YEAR from occurrence & 2 years for private civil lawsuit
Complaint must be made to Department of Housing & Urban Development (HUD)
Steering
Illegal act of guiding prospective home buyers towards or away From neighborhoods because of their membership in a protected class
NB: Agent is not allowed to help clients in steering practices (ex. “show me houses in Hispanic neighborhoods only/neighborhoods with a lot of children”, etc.)
Blockbusting
Illegal practice of causing owners to sell their homes by creating fear the members of a protected class are moving into the area
AKA, Panic peddling/Panic selling
It promotes selling below market value.
Result of blockbusting = white flight
Redlining
Illegal act of a lender refusing to issue mortgages in a specific area
Implemented in 1930 by the Home Owners Loan Corporation (areas with a D didn’t get approval)
Accommodation vs Modification (and Finish-out)
ADA
Accommodation = Alteration of policy
Modification = alteration to property. Must be done if doesn’t impose undue financial burden.
Finish out = adaptation of a space for buyer/tenant use
Where is that landlord can handle security deposits and advance friends + timeline for notification
(Florida Residential Landlord and Tenant Act)
A) put in separate non-interest-bearing account
B) put in separate interest-bearing account (tenant must receive minimum 75% of average annual interest rate)
C) put in surety bond
NB: Deposit method must be indicated within 30 days of receipt of funds. If methods changes, tenant must be notified within 30 days
Notice given by landlord to enter tenants premises for repair
(Florida Residential Landlord and Tenant Act)
12 hours
Emergency/protect premises = No notice needed
Rent noncompliance Notice
Florida Residential Landlord and Tenant Act
3 business days
Timeline for returning security deposit
Florida Residential Landlord and Tenant Act
No claim = 15 days
Claim = written notice must be given within 30 days
Property Report
Document the must be provided by developers of 25+ lots to prospective purchaser prior to signing the contract
Includes all essential info about the property (EX. Distance on paved roads to nearby communities, different homes currently occupied, soil conditions affecting foundation and septic system, existence of liens, type of title to be received, etc.)
