Questions - Chapter 17

Question 1

Sam Seller refused to accept an offer to purchase his home from Juan Alvarado because Sam considered the $50 deposit insufficient. As to Sam’s refusal, which of the following is correct?

A. Sam is in violation of the Fair Housing Law because he discriminated on the basis of national origin.
B. Since Sam refused the offer for financial reasons, he is not in violation of the 1968 Act.
C. Sam is in violation of the Civil Rights Act of 1866.
D. Sam is in violation of the North Carolina Fair Housing Act of 1983.

Answer 1

17-1 B

Question 2

Which of the following is not a basis of discrimination prohibited by the 1968 Federal Fair Housing Act and/or the 1988 amendments?

A. race
B. sex
C. occupation
D. religion

Answer 2

17-2 C

Question 3

Larry Landlord refused to rent one of five apartments in his building to Barbara Barrister, a black attorney. Which of the following statements about Larry’s refusal is NOT correct?

A. If Larry’s refusal to rent to Barbara was because she is an attorney, he is not in violation of the 1968 Act.
B. If Larry’s refusal to rent to Barbara was because she is female, Larry is in violation of the 1968 Act amended in 1974.
C. If Larry’s refusal to rent to Barbara was because she is black, he is in violation of the 1968 Act and the Civil Rights Act of 1866.
D. Larry is not in violation because his property contains more than four units.

Answer 3

17-3 D

Question 4

Seller’s Town Multiple Listing Service refuses to accept a listing of a property because the owner is from the former Soviet Union. Which of the following is correct?

A. A multiple listing service (MLS) does not come under the Act because it is a private nonprofit organization.
B. The Act does not prohibit discrimination against Russians.
C. The listing broker’s membership in the MLS may be terminated for taking the listing.
D. The MLS is in violation of the 1968 Act for denying access to the service because of the owner’s national origin.

Answer 4

17-4 D

Question 5

A property manager refuses to rent an office because the rental applicant is black. The applicant has legal recourse under the:

A. Federal Fair Housing Act of 1968.
B. Civil Rights Act of 1866.
C. North Carolina Fair Housing Act of 1983.
D. North Carolina Residential Rental Agreements Act.

Answer 5

17-5 B

Question 6

In an advertisement offering her only house for sale, the owner states that she will give preference to cash buyers who are female and Roman Catholic. The owner subsequently refused a cash offer because the buyer was a male Presbyterian. Which of the following is correct?

A. Since the seller owned only one house, she is exempt from the 1968 Act.
B. Since the advertisement stated a preference, but not an outright limitation, it is not discriminatory.
C. Since the North Carolina Fair Housing Act has no exemptions for an owner selling her own home, the seller has violated state law.
D. The seller is allowed one “exempt” sale every three years assuming she has not used it before.

Answer 6

17-6 C

Question 7

A real estate agent showed white prospects houses in all-white areas only. This discriminatory practice is called:

A. redlining.
B. blockbusting.
C. steering.
D. directing.

Answer 7

17-7 C

Question 8

Which of the following is exempt from the provisions of the 1968 Act?

A. an owner of four houses
B. an owner occupying one of four apartments in his or her building
C. a religious organization renting 1 of 16 apartments it owns and operates for commercial purposes
D. an owner listing a residential lot for sale with a real estate broker

Answer 8

17-8 B

Question 9

A resident of Raleigh decided to sell her home by herself without listing it with a real estate company. There was no discriminatory advertising. When an African American buyer asked to see the home, the owner refused. The owner:

A. is in violation of the federal Fair Housing Act of 1968.
B. is in violation of the North Carolina Fair Housing Act of 1983.
C. is not in violation of the Civil Rights Act of 1866.
D. is not in violation of any of the Fair Housing Acts.

Answer 9

17-9 B

Question 10

The term familial status applies to:

A. families with children under the age of 18.
B. same sex couples living together.
C. two different sets of families sharing the same household.
D. restrictions on the number of people living in the rental unit.

Answer 10

17-10 A

Question 11

The practice of using discriminatory lending practices to avoid making loans to persons located in areas occupied primarily by minorities is:

A. blockbusting.
B. steering.
C. redlining.
D. panic peddling.

Answer 11

17-11 C

Question 12

The owner of a FSBO (for sale by owner) availed herself of the exemption provided by the 1968 Act and refused to accept a purchase offer because the offeror was white. The offeror can do all of the following EXCEPT:

A. pursue a lawsuit under the 1866 law.
B. seek legal action under the 1968 law.
C. seek legal action under the North Carolina Fair Housing Act.
D. file a complaint with the North Carolina Human Relations Commission.

Answer 12

17-12 B

Question 13

Jane Smith rented a room in her own private home but refused African American tenants. Jane is in violation of:

A. the Federal Fair Housing Act of 1968.
B. the North Carolina Fair Housing Act of 1983.
C. the Civil Rights Act of 1866.
D. There is no violation in this example.

Answer 13

17-13 C

Question 14

An apartment complex refused to rent to a couple that had two small children because there was no available unit in the “children” buildings but several units were in the “no children” buildings. Which of the following statements are true?

A. This is not discriminatory because the apartment complex does not refuse to rent to couples with children.
B. This is an example of steering.
C. The apartment complex is allowed to stipulate that certain buildings are for children and others are not.
D. As long as the apartment complex does not advertise this practice, it is legal.

Answer 14

17-14 B

Question 15

A person confined to a wheelchair requested that an apartment be modified to meet his physical needs. Which of the following is true?

A. The owner must make appropriate modifications at the owner’s expense.
B. At the end of the tenancy, the disabled tenant can be required to pay for returning the premises to their original condition.
C. The owner can refuse to rent to this tenant.
D. The owner is never allowed to charge the disabled tenant a deposit for returning the modifications to their original state upon termination of the lease.

Answer 15

17-15 B

Question 16

The refusal of a lending institution to make a residential real estate loan strictly because of the racial or ethnic composition of the neighborhood is called:

A. blockbusting
B. redlining
C. steering
D. panic peddling

Answer 16

T17-1 B

Redlining is a fair housing violation typically committed by mortgage brokers or lenders. It involves changing loan terms or downpayment amounts based on geographical boundaries that are tied to racial or ethnic makeup of a neighborhood.

Question 17

The practice of renting only first floor apartments to families with toddlers rather than allowing the families to rent apartments with balconies that are located within the upper floors of the building is considered:

A. the responsibility of the property manager in order to minimize the liability of the owner
B. an illegal practice that constitutes blockbusting
C. redlining
D. a discriminatory practice

Answer 17

T17-2 D

This would be considered a discriminatory practice because of the protected class of familial status which prohibits different treatment for parents of custodial children under the age of 18.

Question 18

A house for sale was advertised: “Fine executive home in an upscale neighborhood within walking distance of city park and St. Mary’s College.” All of the following are true, EXCEPT:

A. This is descriptive of the property for sale and a good ad.
B. An upscale neighborhood could be interpreted to mean that minorities are not welcome.
C. It appears that wheelchair-bound buyers are not welcome.
D. The neighborhood could appear to be undesirable for people who do not follow the same religion as founders of St. Mary’s College.

Answer 18

T17-3 A

There are several fair housing issues with this advertisement all of which are indicated in the other answers.

Question 19

The Americans with Disabilities Act requires that:

A. all real estate is free of barriers to people with disabilities
B. all employers adopt nondiscriminatory employment practices
C. reasonable accommodations be provided to people with disabilities
D. the existing premises must be remodeled regardless of the cost involved

Answer 19

T17-4 C

ADA or the Americans with Disabilities Act applies only to commercial or public facilities and requires that reasonable accommodations be made including items like the installation of ramps, handicapped restrooms and handicapped parking spaces.

Question 20

Which of the following would be considered legal:

A. charging a family with children a higher security deposit than is charged to adults
B. refusing to rent to a person with disability because they have a poor credit history and are unable to demonstrate sufficient income to pay the rent
C. picturing only white people in a brochure as the happy residents in a housing subdivision
D. refusing to sell a house to a person who has a history of alcoholism

Answer 20

T17-5 B

Poor credit and insufficient income is never a protected class under fair housing.

Question 21

The unlawful practice of channeling prospective buyers from or to a particular area is known as:

A. blockbusting
B. steering
C. panic peddling
D. harassment

Answer 21

T17-6 B

Steering is usually a violation that occurs with buyers when they are directed to or away from certain areas on the basis of racial or ethnic makeup.

Question 22

An owner wishes to list an expensive home, but has requested that the home be sold to Caucasians only. Under the law, the agent should:

A. inform the seller he cannot legally accept the listing under those conditions
B. explain that it would be unlikely that non-Caucasians would be able to afford the house
C. advise the owner to sell it themselves
D. advertise the home solely in newspapers read by Caucasians

Answer 22

T17-7 A

A licensee is required to follow a client’s instructions unless they violate the law. When a licensee receives an illegal instruction they should refuse the instruction and if necessary terminate the relationship.

Question 23

Under what circumstances may a broker legally NOT show a minority a home in a white neighborhood?

A. never
B. when the minority has given up their rights under the 1866 Civil Rights Act
C. if the owner is out of town and has instructed the broker not to show the home to anyone while the owner is away
D. when the agent sincerely believes that if the home were shown, there would be violence

Answer 23

T17-8 C

If the owner has given an instruction that is equally applied to everyone then there is no discriminatory treatment on the basis of protected classes.

Question 24

Under the Fair Housing Amendments Act of 1988, a handicapped person can be an individual:

A. in a low income family
B. who can’t qualify for a federally guaranteed or insured loan
C. who has abused controlled substances over a long time
D. with a mental impairment that substantially limits that person from living a normal life

Answer 24

T17-9 D

The definition of handicapped under federal law is “any physical or mental impairment which substantially limits a person’s activities.”

Question 25

“Familial status,” as it is defined in the Fair Housing Amendments Act of 1988, prohibits housing discrimination against:

A. parents or a legal guardian with dependent children
B. families or parents with custodial children under the age of 18
C. a household unit where at least one member is over the age of 55
D. children living with their grandparents

Answer 25

T17-10 B

Familial status protects all families or parents with custodial children under the age of 18.

Question 26

The federal Fair Housing Act protects:

A. students
B. married women
C. migrant workers
D. elderly people

Answer 26

T17-11 B

Married women are protected. Not because they are married. Marital status is not a protected class. It is the inclusion of the word “women” which is the protected class of sex (gender).

Question 27

A young woman with a “visual impairment” wants to live in an apartment building with her seeing eye dog. The building has a policy that requires the landlord to collect a “pet deposit” for any tenant regardless of their protected class. The woman refuses to pay the deposit. Which of the following is correct:

A. Because the deposit is charged equally and fairly to all tenants, the landlord can require the deposit.
B. The landlord should not charge the deposit to the visually impaired woman, but can increase the amount of her security deposit for damage that the dog might cause.
C. The landlord may not charge her the deposit because the animal is not a “pet”.
D. The landlord must rent her the unit, but can require that the dog be kept outside of the unit.

Answer 27

T17-12 C

Whether dealing with service animals under ADA or assistive animals under the Fair Housing Act, they are not considered pets and deposits cannot be charged and housing or access cannot be declined due to the existence of the animal.

Question 28

A tenant with a handicap asks her landlord for permission to modify her dwelling unit. The landlord can:

A. charge a larger than customary security deposit so money will be available to restore the unit to its original condition when the tenant moves out
B. require the tenant to restore the interior to the original condition at the end of the tenancy
C. require the tenant to move out if she isn’t comfortable
D. deny the request for no reason

Answer 28

T17-13 B

Landlords must allow tenants with disabilities to make reasonable modifications. The tenant is responsible for paying for the modifications and can be required to restore them at the end of the tenancy.

Question 29

The federal Fair Housing Act created exemptions where federal fair housing law is not applicable. These exemptions never apply to:

A. familial status
B. handicapped and accessibility issues
C. race or color
D. religion

Answer 29

T17-14 C

The exemptions in the Fair Housing Act never apply to race or color because that type of discrimination has been illegal since the 1866 Civil Rights Act.

Question 30

How long does a individual have to file a complaint with HUD in regard to a fair housing violation?

A. 30 days
B. 60 days
C. 1 year
D. 2 years

Answer 30

T17-15 C

The time limit for an individual to file a fair housing complaint is one year.