Review Questions Unit 3

Question 1

A landlord refuses to rent a vacant apartment to a couple with two small children because he is concerned the children will disturb the sick and elderly woman in the apartment next door. Which of these is most likely TRUE?

Answer 1

Although the landlord’s intent is to make things easier for the sick and elderly tenant, the refusal violates the Fair Housing Act by discriminating on the basis of familial status.

Question 2

The fair housing laws under the disabled persons classification protect persons with AIDS.

Answer 2

True. A disability is a physical or mental impairment; persons with AIDS are protected by the fair housing laws under this classification.

Question 3

Under the Fair Housing Act, what is HUD’s first action on receiving a complaint of illegal discrimination?

Answer 3

Within 100 days of the filing of the complaint, HUD either determines that reasonable cause exists to bring a charge of illegal discrimination or dismisses the complaint.

Question 4

The Civil Rights Act of 1968 applies only to race.

Answer 4

False. The Civil Rights Act of 1968 applies to housing discrimination based on race, color, religion, and national origin.

Question 5

Which of these laws extended housing discrimination protections to families with children and persons with disabilities?

Answer 5

The Fair Housing Amendments Act of 1988 added disability and familial status. The Housing and Community Development Act of 1974 added sex to the list of protected classes, which is found in Title VIII of the Civil Rights Act of 1968. The Civil Rights Act of 1866 prohibits discrimination based on race.

Question 6

The Fair Housing Act is administered by the county in which the property is located.

Answer 6

False. The Fair Housing Act is administered by the Department of Housing and Urban Development (HUD), a federal agency.

Question 7

Complaints of discriminatory housing practices filed with HUD will be referred to a local enforcement agency if

Answer 7

If a state or local law is substantially equivalent to the federal law, all complaints filed with HUD are referred to the local enforcement agencies.

Question 8

A woman met with a landlord to view a two bedroom apartment. She has two children and is also pregnant. The landlord told her that the rules of the building allow only two children per two-bedroom apartment, so he cannot rent to her. Is this a violation of the Fair Housing Act?

Answer 8

Occupancy standards must be based on objective factors, such as sanitation or safety, not number of children.

Question 9

The Fair Housing Act is administered by the

Answer 9

The Department of Housing and Urban Development (HUD) handles fair housing complaints on the national level. Most states have enacted substantially similar laws, so often it is the state agency that is involved.

Question 10

Channeling home seekers to particular neighborhoods based on noneconomic factors is an illegal practice called steering.

Answer 10

True. Steering is the illegal channeling of prospective home buyers to particular neighborhoods, or by discouraging potential buyers from considering some areas based on the basis of a protected class.

Question 11

A real estate broker sends a bright yellow flyer to all the homeowners in a neighborhood. The flyer contains a reprinted article from a local newspaper describing the future relocation plans of various employers in the region and this statement, printed in bold red letters: “Warning! The failure to sell your property within the next six months could cost you a bundle!” At the bottom of the page was printed the broker’s name, photo, office address, and phone number. Based on these facts, the broker

Answer 11

has committed no offense.

Question 12

The ADA Accessibility Guidelines contain ADA’s specific requirements for curb ramps, elevators, and other measures to make spaces accessible for people with disabilities.

Answer 12

True. The ADA Accessibility Guidelines contain these specifications.

Question 13

All of these people are considered members of protected classes EXCEPT

Answer 13

Persons convicted of manufacturing or distributing illegal drugs do not enjoy any protections under the Fair Housing Laws, although disability is a protected class. Individuals who are participating in addiction recovery programs are in a protected class of disability.

Question 14

The purpose of the civil rights laws that affect the real estate industry is to make everyone equal.

Answer 14

False. The purpose of the civil rights laws that affect real estate is to create a marketplace in which all persons of similar financial means have a similar range of housing choices.

Question 15

The Fair Housing Act prohibits landlords from asking potential tenants for citizenship or immigration documents during the screening process.

Answer 15

False. However, HUD provides a specific procedure for collecting and verifying citizenship papers.

Question 16

There are no exemptions under the federal Fair Housing Act.

Answer 16

False. The Civil Rights Act of 1866, as interpreted by Jones v. Mayer, does not allow any exemptions involving race. Under the federal Fair Housing Act of 1968, some exemptions exist for small investors and certain organizations.

Question 17

Under HUD regulations, a dwelling is limited to single-family houses, condominiums, and cooperatives.

Answer 17

False. Under HUD regulations, a dwelling includes single-family houses, condominiums, cooperatives, mobile homes, and vacant land on which any of these structures will be built.

Question 18

A real estate professional is obligated to provide ethnic-diversity information to homebuyers.

Answer 18

False. Pursuant to the 2001 case Hannah v. Sibcy Cline Realtors, a real estate professional is not obligated to provide ethnic-diversity information about a neighborhood to a homebuyer.

Question 19

One of the provisions of the Fair Housing Amendments Act of 1988 is

Answer 19

The Fair Housing Amendments Act of 1988 expanded federal civil rights protections to familial status and disability. The Act also changed the penalties by making them more severe and by adding additional damages.

Question 20

While not valid considerations for the underlying real estate transaction, these factors may be considered by an appraiser in evaluating a property: race, color, religion, national origin, sex, disability, and familial status.

Answer 20

False. Race, color, religion, national origin, sex, disability, and familial status may not be considered in any formal or informal appraisal or evaluation of a property.

Question 21

A neighborhood has a large Asian population. When a Chinese couple came to a broker to look for a home to buy, he suggested they look at listings only in this neighborhood. The broker violated the Fair Housing Act because his actions constitute

Answer 21

steering