Practice of real estate

Question 1

An agent is working with buyers wishing to purchase an older home in a deteriorating neighborhood. Both of the buyers have good incomes and are well qualified. The buyers have been turned down by three lenders for a loan on the property. The lenders may be guilty of:
   A  »  steering
   B  »  blockbusting
   C  »  price fixing
   D  »  redlining

Answer 1

(D) Redlining is where lenders refuse to make loans in particular areas. (A) Steering is directing buyers toward areas based on race, religion, etc. (B) Blockbusting is trying to scare persons into selling by saying people of a protected class are moving into the neighborhood. (C) Price fixing is a violation of the Sherman Anti-Trust laws.

Question 2

How long does a person have who has been discriminated against to file a complaint with the Department of Housing and Urban Development (HUD)?
   A  »  6 months
   B  »  1 year
   C  »  2 years
   D  »  3 years

Answer 2

(B) A person has 1 year in which to file a complaint with HUD, not (A) 6 months, (C) 2 years or (D) 3 years.

Question 3

Which of the following would be exempt under the Federal Fair Housing Law of 1968?
A » An owner of an 8 unit apartment building who lives in one of the units
B » An individual selling a personal residence who does NOT discriminate in advertising
C » A private club that was an annex of a commercial motel
D » A religious group that discriminated only on the basis of national origin

Answer 3

(B) An owner who does not use a broker and does not discriminate in advertising is exempt. (A) is wrong as only 4-plexes and smaller are exempted. (C) is wrong as it cannot be operated commercially and be exempted. (D) is wrong as religious groups can only discriminate on religious grounds, not nationality.