Legal Issues Flashcards
New Legal Developments
As a real estate licensee, it is imperative that you remain informed when there are now developments in real estate law. The Kansas Real Estate Commission’s website has a page devoted to recently proposed and passed legislation that affects BRRETA
Rebate
This regulation is necessary in order to clarify what types of rebates related to real estate transactions are prohibited in Kansas
- shall mean the return of all or part of the purchase price of real estate, whether by cash or cash equivalent, that is promised or agreed to by a licensee and a client or customer before closing and is contingent on the transaction closing
- shall include the return of all or part of any commission or compensation paid to a licensee and any transaction that results in, or has as its purpose, the purchase of real estate at a price different from the price specified in the closing statement
- shall not include any gifts given by a licensee to a client or customer that is not promised or agreed to by licensee and the client or customer in advance. For the purpose of this regulation, :cash equivalent” shall mean gift cards, prepaid credit cards, and any other item with a value equal to a specific amount of money that can be used in the same manner as that for cash
Advertising and Fair Housing
There are many rules regarding advertising property without discriminating. In general, ads should describe the property, not the tenant or potential buyer. Real estate agents should avoid words that express a preference based on a protected class (e.g. “perfect for a family”). The use of human models in sales or brochures should also reflect the diversity of the community
Equal Opportunity Logo
This logo should also appear on all advertisements. While the Fair Housing aAct itself does not require the Equal Opportunity Logo to be displayed, using the logo shows that the licensee is committed to complying with fair housing practice. According to HUD guidelines, all advertising of residential real estate for sale or rent should contain the logo or statement. The logo should be at least equal to the largest of any other logotypes or approximately 2-5% of the size of the advertisement
Language and Wording
Real Estate Agents should check with their local MLS to see if they have a word or phrase list regarding what is acceptable to advertising on the MLS.
Examples of Advertising Violations
-A property manager saying to a potential renter that “only real Americans” live in the apartment complex
- Online or print ads with the following phrases:
- no kids allowed
- christian atmosphere
- Prefer clean christian
- ideal for mature couple or single with no children
NAR Code of Ethics Article 10 Case Study- “Choose Your Neighbor” Letters
A case study from NAR’s Code of Ethics highlights the use of “Choose Your Neighbor” letter and the circumstances surrounding an acceptable and unacceptable use with respect to fair housing
HUD Guidance on Real Estate Advertising
in 1995, HUD released a guidance document regarding advertising and the Fair Housing Act
Race, color, national origin
Real estate advertisements should state no discriminatory preference or limitatio on account of race, color, or national origin. Use of words describing the housing, the current or potential residents or the neighbors or neighborhood in racial or ethnic terms (i.e., white family home, no Irish) will creat liability under this section. However, advertisements which are facially neutral will not create liability. This, complaints over use of phrases such as master bedroom, rare find, or desirable neighborhood should not be filed
Religion
Advertisements should not contain an explicit preference, limitation or discrimination on account of religion
Sex
Advertisements for single family dwellings or separate units in a multi-family dwelling should contain no explicit preference, limitation or discrimination based on sex. Use of the term master bedroom does not constitute a violation of either the sex discrimination provisions or the race discrimination provisions. Terms such as “mother-in-law suit” and “bachelor apartment” are commonly used as physical disruptions of housing units and do not violate the Act
Handicap
Real estate advertisements should not contain explicit exclusions, limitations, or other indications of discrimination based on handicap.
Familial Status
Advertisements may not state an explicit preference, limitation or discrimination based on familial status. Advertisements may not contain limitations on the number or ages of children, or state a preference for adults, couples or singles. Advertisements describing the properties, service and facilities or neighborhoods are not facially discriminatory and do not violate the Act
Megan’s Law
Refers to the requirement that after sex offenders are released from prison, they must register their home address with the.local police force. This brings up the question, are real estate agents required to discover and disclose the presence of sex offenders in a clients’s neighborhood?
-Current Kansas statutes do not require licensees to perform this service for their clients
However, if a client is concerned with this issue it is important for the licensee to know where to direct their client to find this information
Stigmatized Properties
These properties that buyers might not be interested in for reasons that are not linked to the property’s actual physical condition. Examples of stigmatized properties include the murder suicide of a previous owner/occupant. These events might lead buyers to the belief that the property is haunted
Kansas does not have any law that requires sellers or seller’s agents to disclose the death/murder/suicide of a previous occupant as this is not related to the property’s physical condition. However, some people are in favor of disclosing this information. Especially if the buyer or buyer’s agent specifically asks about it
