Section 18: Federal Laws Governing Real Estate Activities Flashcards
1
Q
Federal Laws Governing Real Estate Activities:
* H.U.D. means ________.
A
Federal Department of Housing and Urban Development (HUD)
2
Q
Federal Laws Governing Real Estate Activities:
Department of Housing and Urban Development (H.U.D.):
* This is the Administration over the ________.
A
Federal Fair Housing Act [FFHA]
3
Q
Federal Laws Governing Real Estate Activities:
Department of Housing and Urban Development (H.U.D.):
* ________:
o Federal act intended to protect both purchasers and renters of real property from discrimination.
A
Federal Fair Housing Act [FFHA]
4
Q
Federal Laws Governing Real Estate Activities:
Department of Housing and Urban Development (H.U.D.):
Federal Fair Housing Act [FFHA]:
* ________:
o Created by HUD
o Must be clearly displayed in brokerage offices.
A
Fair Housing Poster
5
Q
Federal Laws Governing Real Estate Activities:
Department of Housing and Urban Development (H.U.D.):
*Federal Fair Housing Act [FFHA]:
* Fair housing statutes ________ community CC&Rs and HOA written restrictions.
o Community Violations are equal to civil penalties enforced on agents.
A
Supersede
6
Q
Federal Laws Governing Real Estate Activities:
Department of Housing and Urban Development (HUD):
Quiz:
Where would you most likely find the Fair Housing Poster?
New Home Sales Offices
A real estate agents social media post
The brokerage office
A bank
A
New Home Sales Offices
A bank
7
Q
Federal Laws Governing Real Estate Activities:
Enforcement of the Federal Fair Housing Act (F.F.H.A.):
* It is considered a criminal act to NOT ________ with fair housing laws.
A
Comply
8
Q
Federal Laws Governing Real Estate Activities:
Enforcement of the Federal Fair Housing Act (F.F.H.A.):
* Civil Rights Acts complaints or violations are directed directly to the Federal Department of Housing and Urban Development (H.U.D.).
* Federal Department of Housing and Urban Development (H.U.D.) will investigate all claims to determine validity of claims.
* Federal Department of Housing and Urban Development (H.U.D.) will ________ between two parties if needed.
A
Mediate
9
Q
Federal Laws Governing Real Estate Activities:
Enforcement of the Federal Fair Housing Act (F.F.H.A.):
o IN ARIZONA, all cases are directed to the ________.
o If found guilty of discrimination, a monetary penalty can be assessed.
A
State Attorney General Office
10
Q
Federal Laws Governing Real Estate Activities:
Enforcement of the Federal Fair Housing Act (F.F.H.A.):
* Federal Department of Housing and Urban Development (H.U.D.) sends out ________ into the field to test licensees for Fair Housing law compliance.
A
Undercover Testers
11
Q
Federal Laws Governing Real Estate Activities:
Enforcement of the Federal Fair Housing Act (F.F.H.A.):
* Federal Department of Housing and Urban Development (H.U.D.) sends out undercover testers into the field to test licensees for Fair Housing law compliance:
* Testers could be sent randomly or could be caused by more than one ________ against a party.
A
Accusation
12
Q
Federal Laws Governing Real Estate Activities:
Enforcement of the Federal Fair Housing Act (F.F.H.A.):
* Federal Department of Housing and Urban Development (H.U.D.) sends out undercover testers into the field to test licensees for Fair Housing law compliance:
o Disciplinary action against licensee up to and including license suspension, revocation, monetary penalties and/or ________ courses, even could be:
Conciliation
Actual Damages
Monetary Penalty
Punitive Damages
A
Continuing Education
13
Q
Federal Laws Governing Real Estate Activities:
Enforcement of the Federal Fair Housing Act (F.F.H.A.):
o Disciplinary action against licensee up to and including license suspension, revocation, monetary penalties and/or continuing education courses, even could be:
________:
Assuring that the licensee in violation will correct the violation.
________: compensation for any losses proven to had occurred.
________: Penalties that are assessed to agents, brokers or firms who are found guilty of discrimination.
________: Within 2 years civil action may be sought in federal court for unlimited punitive damages.
A
Conciliation
Actual Damages
Monetary Penalty
Punitive Damages
14
Q
Federal Laws Governing Real Estate Activities:
Enforcement of the Federal Fair Housing Act (F.F.H.A.):
o Disciplinary action against licensee up to and including license suspension, revocation, monetary penalties and/or continuing education courses, even could be:
________:
Assuring that the licensee in violation will correct the violation.
A
Conciliation
15
Q
Federal Laws Governing Real Estate Activities:
Enforcement of the Federal Fair Housing Act (F.F.H.A.):
o Disciplinary action against licensee up to and including license suspension, revocation, monetary penalties and/or continuing education courses, even could be:
________:
Compensation for any losses proven to had occurred.
A
Actual Damages
16
Q
Federal Laws Governing Real Estate Activities:
Enforcement of the Federal Fair Housing Act (F.F.H.A.):
o Disciplinary action against licensee up to and including license suspension, revocation, monetary penalties and/or continuing education courses, even could be:
________:
Penalties that are assessed to agents, brokers or firms who are found guilty of discrimination.
A
Monetary Penalty
17
Q
Federal Laws Governing Real Federal Laws Governing Real Estate Activities:
Enforcement of the Federal Fair Housing Act (F.F.H.A.):
o Disciplinary action against licensee up to and including license suspension, revocation, monetary penalties and/or continuing education courses, even could be:
________:
Within 2 years civil action may be sought in federal court for unlimited punitive damages.
A
Punitive Damages
18
Q
Federal Laws Governing Real Estate Activities:
HUD vs FHA:
* FHA means ________.
A
Federal Housing Authority (F.H.A.)
19
Q
Federal Laws Governing Real Estate Activities:
HUD vs FHA:
________:
* This is the agency that oversees, enforces, guarantees and monitors government residential lending programs.
A
Federal Department of Housing and Urban Development (HUD)
20
Q
Federal Laws Governing Real Estate Activities:
HUD vs FHA:
* Both Federal Department of Housing and Urban Development (H.U.D.) and FHA missions are to protect both homeowners and renters in addition to ________ loans.
A
Insuring
21
Q
Federal Laws Governing Real Estate Activities:
HUD vs FHA:
* Neither entity Federal Department of Housing and Urban Development (H.U.D.) and Federal Housing Authority (F.H.A.) usually make any direct loans, but they DO ________ the loans.
A
Guarantee
22
Q
Federal Laws Governing Real Estate Activities:
HUD vs FHA:
* The Federal Housing Authority (F.H.A.) is a department that is part of the ________.
A
Federal Department of Housing and Urban Development (H.U.D.)
23
Q
Federal Laws Governing Real Estate Activities:
HUD vs FHA:
________________:
* This entity helps individual homeowners get low-down-payment loans to buy single family homes and condominiums. They allow a 3.5% down payment.
A
Federal Housing Authority (F.H.A.)
24
Q
Federal Laws Governing Real Estate Activities:
HUD vs FHA:
Federal Housing Authority (F.H.A.):
* This is used as a lender ________ for properties in which the homeowners will live in and reside in as ‘Primary Residence.’
A
Guarantor
25
Federal Laws Governing Real Estate Activities:
HUD vs FHA:
________:
* This agency focuses on insuring loans used for multi-family housing. i.e. apartment complexes and large housing projects.
Federal Department of Housing and Urban Development (H.U.D.)
26
Federal Laws Governing Real Estate Activities:
Real Life Note:
FHA loans are loans that are made by any bank, where the borrower is higher risk since they don't have the large ________. In this case, the borrower's loan is insured and if they default, the FHA will reimburse the lender.
These are great borrowers to work with but there are a lot of sellers who are apprehensive about accepting FHA buyers. The more you know, the easier it will be to work with both buyers and sellers using FHA loan types!
Down Payment
27
Federal Laws Governing Real Estate Activities:
________:
These ensure equality for all who are looking for a home by ensuring that they are limited by ability to pay only.
Federal Fair Housing Laws
28
Federal Laws Governing Real Estate Activities:
Federal Fair Housing Laws:
* Federal Fair Housing Act is NOT the same as the ________.
Federal Fair Housing Authority (F.F.H.A.)
29
Federal Laws Governing Real Estate Activities:
Federal Fair Housing Laws:
* The premise is that the law protects those by promising equality and ________ Equality.
Only
30
Federal Laws Governing Real Estate Activities:
Federal Fair Housing Laws:
* NATIONALLY 7 protected classes:
1.
2.
3.
4.
5.
6.
7.
1. Race
2. Color
3. Religion
4. National Origin
5. Sex
6. Disability
7. Familial Status
31
Federal Laws Governing Real Estate Activities:
Federal Fair Housing Laws:
* State laws may build on and ________ more classes to federal fair housing laws and each state is independent in their own list of protected classes.
Add
32
Federal Laws Governing Real Estate Activities:
Fair Housing Law:
Quiz:
Which of the following is NOT a federally protected class?
Race
Creed
National Origin
Religion
Creed
33
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
* ________ [Began after the Civil War ended in 1865]:
* Prohibited discrimination during the purchase, sale, lease or conveyance of real property based on the case of RACE ONLY.
Civil Rights Act of 1866
34
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
* Civil Rights Act of 1866 [Began after the Civil War ended in 1865]:
o Introduced the FIRST protected class:
________ with NO Exceptions.
o No Exceptions was meant to define, color, background, and ethnicity.
Race
35
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
o Supreme Court hearing that UPHELD the Civil Rights Act of 1866.
* This was the ________ Court Case Hearing.
Jones v. Mayer (1968)
36
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
Jones v. Mayer (1968) Court Case Hearing:
o Up until this time enforcement of the act had been weak and not enforced.
o Bars all racial discrimination, private and public, in the sale or rental of property.
NOTE: It was this case that finally addressed the 'Race' in housing and it's ________.
Discrimination
37
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
* ________:
Act that prohibited the discrimination against certain protected classes.
o Added protected classes:
Color
Religion
Race
National Origin
Title VIII (8) of the Civil Rights Act of 1968
38
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
* Title VIII (8) of the Civil Rights Act of 1968:
Act that prohibited the discrimination against certain protected classes.
o Added protected classes:
1.
2.
3.
4.
1. Color
2. Religion
3. Race
4. National Origin
39
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
* Title VIII (8) of the Civil Rights Act of 1968:
o In ________, they added the protected class: Gender [Both Male and Female]
1974
40
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
* ________:
o Added Protected Classes:
Disability
Familial status
1988 Fair Housing Amendments Act
41
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
* 1988 Fair Housing Amendments Act:
o Added Protected Classes:
1.
2.
1. Disability
2. Familial Status
42
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
* 1988 Fair Housing Amendments Act:
o Made penalties for non-compliance against discrimination toward Protected Classes more severe.
Including ________ for those who do not comply.
Damages
43
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
* ________:
* Prohibits discrimination of members of a protected class and those who associate with
individuals of a protected class.
1988 Fair Housing Amendments Act
44
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
Case Study:
An apartment complex wants to only accept female tenants. Is this legal?
No, it is illegal. Federal Fair Housing laws ensure equality for all looking for a home by providing that they are limited by the ability to pay only.
45
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
Case Study:
Is the Fair Housing Act and FHA the same thing?
No. THE FEDERAL FAIR HOUSING ACT is NOT the Federal Housing Authority (FHA).
46
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
Case Study:
How many Protected Classes are there in the Fair Housing Act? Name two of them
There are seven protected classes,
1. Race
2. Color
3. Religion
4. National Origin
5. Sex
6. Disability
7. Familial Status
47
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
Case Study:
What is the mission of HUD/FHA?
FHA is a department that is part of HUD. FHA helps individual homeowners get low-down-payment loans to buy single-family homes and condominiums (3.5% down payments). FHA is a lender guarantor for properties where the homeowners will live and reside as ‘primary residence.’ HUD focuses on multifamily housing loans (apartment complexes).
48
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
Quiz:
Federal fair housing laws ensure potential buyers are limited only by what factor?
The ability to maintain a home
Location
The ability to pay for a home
Educational background
The ability to pay for a home
49
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
Quiz:
Who administers the Federal Fair Housing Act?
Department of Veterans Affairs
Federal housing authority
Consumer financial protection bureau
Fair housing authority
Federal housing authority
50
Federal Laws Governing Real Estate Activities:
Fair Housing Law History:
Quiz:
Which of the following is not a protected class under the Fair Housing Act?
Religion
National origin
Disability
Public assistance dependence
Public assistance dependence
51
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
* ________:
o Evidence of at least one Child under the age of 18 in the home.
52
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
* Family Defined:
o Protects “families” who are ________.
o Also, protects those who are in the process of adopting a child.
Pregnant
53
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
* Family Defined:
You may legally turn away families with children, however, if your rental property qualifies as ________ housing.
Senior
54
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
* ________:
o This includes both physical and mental impairments.
Disabilities
55
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
* Disabilities:
o Prospects and tenants who fit the definition are entitled to reasonable accommodations to policies in place.
i.e. Letting a tenant keep a ________ despite a no-pets rule.
Guide Dog
56
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
Disabilities:
o Reasonable modifications to physical structures for increased accessibility:
Installing grab bars in a bathroom at their ________ expense.
Property must be returned to owner in same condition as before improvements were made.
Own
57
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
Disabilities:
o Reasonable modifications to physical structures for increased accessibility:
Entrances, hallways and pass ways must accommodate ________.
Wheelchairs
58
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
Disabilities:
o Reasonable modifications to physical structures for increased accessibility:
Elevators must be in “NEW CONSTRUCTION” properties with ________ or more units for rent, OR the ground floor of units must have disabled access.
4
59
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
Disabilities:
o Reasonable modifications to physical structures for increased accessibility:
Elevators must be in “NEW CONSTRUCTION” properties with 4 or more units for rent, OR the ground floor of units must have ________ access.
Disabled
60
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
________:
* This is NOT a protected class as Evidence of “Housing for Older Persons”.
Elderly
61
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
Age:
o Provided under any State or Federal program that ________ has determined to be specifically designed and operated to assist elderly persons.
Federal Department of Housing and Development (H.U.D.)
62
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
Age:
55 or older facility or communities must satisfy each of the following requirements:
* At least ________% of the units must have at least one occupant who is 55 years of age or older.
80%
63
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
Age:
55 or older facility or communities must satisfy each of the following requirements:
* The facility or community must publish and adhere to the intent to operate as “________” housing community.
55 or Older
64
Federal Laws Governing Real Estate Activities:
Protected Classes Defined:
Age:
55 or older facility or communities must satisfy each of the following requirements:
* The facility or community must comply with Federal Department of Housing and Development (H.U.D.)’s regulatory requirements for ________ of residents.
Age Verification
65
Federal Laws Governing Real Estate Activities:
American’s With Disabilities Act (ADA):
* Ensures reasonable accommodations for the disabled:
* Multi-family housing with multiple floors built after ________ that do not have an elevator, are ONLY required to have ADA units on the first floor.
1996
66
Federal Laws Governing Real Estate Activities:
Americans' With Disabilities Act (ADA):
* Large New Construction rental properties must have units that meet ADA standards:
o Hallways, Entryways, bypass and doors must accommodate wheelchairs.
o Counters, switches, knobs must be accessible to wheelchairs.
o Walls in bathrooms must be ________ for the addition of grab bars.
Reinforced
67
Federal Laws Governing Real Estate Activities:
Americans' With Disabilities Act (ADA):
* In the Workplace,
* ________:
o Required for employers with 15 or more employees.
o Reasonable accommodations must be made for a person with
disabilities to perform job functions.
Title 1
68
Federal Laws Governing Real Estate Activities:
American’s With Disabilities Act (ADA):
*________ :
o Full accessibility for persons with disabilities to public services, businesses, shopping, and goods.
o Influences the buildings designs including parking areas, elevators, baths.
Title 3
69
Federal Laws Governing Real Estate Activities:
American’s With Disabilities Act (ADA):
Quiz:
Which of these is NOT required in the American's Disabilities Act?
All units in new apartments must meet ADA codes
Counters, switches, knobs can vary in accessibility for wheelchairs
Walls in bathroom must be reinforced for the addition of grab bars
To ensure reasonable accommodations for the disabled
All units in new apartments must meet ADA codes
70
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
* Use discriminatory advertising against the protected classes:
o _________ MUST appear in all forms of advertising from an agent.
Fair Housing Logo/Slogan
71
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
* Use discriminatory advertising against the protected classes:
o _________ MUST appear on all forms of material including cards, websites, and flyers.
Fair Housing Logo
72
Federal Laws Governing Real Estate Activities:
Prohibited Activities:
* Advertise directly to a protected class (MUST be to general public):
o Advertising to a ‘ _________’ for buyer opportunities is allowed.
Renters
73
Federal Laws Governing Real Estate Activities:
Prohibited Activities:
* Advertise directly to a protected class (MUST be to general public):
o Advertising to Hispanic renters only in a _________ part of town is illegal.
Specific
74
Federal Laws Governing Real Estate Activities:
Prohibited Activities:
* Advertise directly to a protected class (MUST be to general public):
o Falsely using _________ of protected classes in any form of advertising.
Examples:
Flyers showing ONLY families at a community park is illegal.
Builders show a SAMPLING of races, backgrounds, etc. in their ads.
Representations
75
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
* _________ to sell or rent to someone based on them being a member of a protected class.
Refuse
76
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
* Change the terms/conditions of a sale or rental of property for different buyers or renters in order to _________.
Discriminate
77
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
* Indicated to an individual that a property isn’t available when it actual is:
o Renter A told property _________ available & Renter B told it is, ILLEGAL.
Not
78
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
* Indicated to an individual that a property isn’t available when it actual is:
o Assumptions would be that one class is _________ OVER another.
Preferred
79
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
Exemptions: [Means It's OK]
* Single family housing that is RENTED:
o As long as the Owner does NOT _________ the assistance of a licensed agent.
Enlist
80
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
Exemptions: [Means It's OK]
* Single family housing that is RENTED:
o Owners of a property have the right to _________ who they want to rent to as long as they are not advertising that or hold a real estate license.
Advertising online, the ad must not discriminate, or a suit could be brought against the owners by a protected class.
Choose
81
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
Exemptions: [Means It's OK]
* Single family housing that is RENTED:
_________ rentals can be exempted also.
Short-Term
82
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
Exemptions: [Means It's OK]
* Owner occupied housing with a maximum of 4 units:
o Including renting _________ or rooms in an owner occupied 1 to 4 family dwelling
Units
83
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
Exemptions: [Means It's OK]
* Organizations and private clubs that offer housing at _________ occupancy to members.
Limited
84
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
Exemptions: [Means It's OK]
* Single Family Home sales if:
o Homeowner does not own more than _________ homes at one time.
3
85
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
Exemptions: [Means It's OK]
* Single Family Home sales if:
o A _________ is not involved in any part of the transaction.
o No discriminatory advertising is used.
Real Estate Licensee
86
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
Exemptions: [Means It's OK]
* Religious organizations restricting use to people of the same _________. This cannot be based on race, national origin or color.
Religion
87
Federal Laws Governing Real Estate Activities:
Prohibited Activities [MUST NOT]:
Exemptions: [Means It's OK]
* Group homes are protected under fair housing regulations but are commonly challenged as they don’t conform to many _________ guidelines.
HOA/CCR’s
88
Federal Laws Governing Real Estate Activities:
Prohibited Activities:
Quiz:
Choose the correct statements of what an agent cannot do…
To not have the Fair Housing Logo in all forms of advertising.
Informing an individual that a property is available when it is.
Hold no bias in terms of class or race.
Refusing to sell or rent to an individual based on their race or class.
To not have the Fair Housing Logo in all forms of advertising.
Refusing to sell or rent to an individual based on their race or class.
89
Federal Laws Governing Real Estate Activities:
Government Prohibited Activities:
* ________:
Also known as Channeling, is steering prospective home buyers to or away from buying in a certain area.
Steering
90
Federal Laws Governing Real Estate Activities:
Government Prohibited Activities:
* ________:
Influencing the decisions of homeowners to buy or sell based on fear of an ethnic or social change.
Blockbusting
91
Federal Laws Governing Real Estate Activities:
Government Prohibited Activities:
* ________:
Refusing to issue insurance policies or make loans in a particular area.
Redlining
92
Federal Laws Governing Real Estate Activities:
Government Prohibited Activities:
* Redlining:
o The term “Redlining” is derived from lenders drawing red lines around areas on a map where they will knowingly ________ all applicants.
Deny
93
Federal Laws Governing Real Estate Activities:
Government Prohibited Activities:
Redlining:
* Even ________ breaking these laws is considered illegal and prosecutable.
Unintentionally
94
Federal Laws Governing Real Estate Activities:
Government Prohibited Activities:
Redlining:
* A common motive considered in hearings is the motive of ________.
Profit
95
Federal Laws Governing Real Estate Activities:
Government Prohibited Activities:
Redlining:
* If clients ask a licensee to violate any of these laws, it is up to the licensee to ________. Do NOT point the finger at the clients later on.
Refuse
96
Federal Laws Governing Real Estate Activities:
Government Prohibited Activities:
Redlining:
o NEVER say, “you don’t want to live in that ________”.
Area
97
Federal Laws Governing Real Estate Activities:
Government Prohibited Activities:
Redlining:
o Do NOT use ________s as a point of reference.
Religious Landmark
98
Federal Laws Governing Real Estate Activities:
Government Prohibited Activities:
Redlining:
o NEVER suggest that an area is of a “predominant ________ of people”.
Class
99
Federal Laws Governing Real Estate Activities:
________:
* Passed to help PREVENT discrimination against lending and lenders.
Community Reinvestment Act
100
Federal Laws Governing Real Estate Activities:
Community Reinvestment Act:
* Designed to discourage ________ from REDLINING.
Lenders
101
Federal Laws Governing Real Estate Activities:
Community Reinvestment Act:
* Ensures that banks lend ________ to all parts of a community or area, not just to specific “parts of town” which could be deemed more affluent.
Equally
102
Federal Laws Governing Real Estate Activities:
Community Reinvestment Act:
* With government backed ________, this helps banks extend credit to LOWER income borrowers and thus meeting the regulations behind the Act.
o It is widely believed that this was a contributing factor to the economic housing crisis that began in 2008.
- Too many loans were given out to people who should never have normally received them - lenders were afraid of being charged with redlining, or worse.
Incentives
103
Federal Laws Governing Real Estate Activities:
Case Study:
On what floor(s) are) ADA-accessible rooms required in an apartment complex with an elevator?
Multi-family housing with multiple floors built after 1996 that does not have an elevator is only required to have ADA units on the first floor. The apartment complex with an elevator has no such restriction.
104
Federal Laws Governing Real Estate Activities:
Case Study:
What is the purpose of the Community Reinvestment Act?
The Community Reinvestment Act was passed to help prevent discrimination against lending and lenders. It is designed to discourage lenders from redlining and ensures that banks lend equally to all parts of a community or area, not just to specific “parts of town” that could be deemed more affluent.
105
Federal Laws Governing Real Estate Activities:
Case Study:
A homeowner without a real estate license is selling their only home (3 bedroom) FSBO (for sale by owner). Do they have to follow fair housing laws? What if this individual is a real estate agent?
A homeowner has an exemption if the Homeowner does not own more than three homes at once and a real estate licensee is not involved in any part of the transaction. Moreover, no discriminatory advertising is used. If they are licensed agents, they are not exempted.
106
Federal Laws Governing Real Estate Activities:
Case Study:
What is the difference between blockbusting and steering?
Steering, also known as Channeling, steers prospective home buyers to or away from buying in a particular area. However, Blockbusting is influencing the decisions of homeowners to buy or sell based on fear of an ethnic or social change.
107
Federal Laws Governing Real Estate Activities:
Quiz:
Directing a potential buyer from looking for homes in a certain area, for reasons that you feel would benefit him/her in the long run, can be considered:
Block busting
Redlining
An exemption
Steering
Steering
108
Federal Laws Governing Real Estate Activities:
Quiz:
Regarding fair housing law, which is not an exemption to advertising?
A religious organization restricting people based on national origin
Private clubs limiting occupancy to members
Owner occupied housing with no more than 4 units
Single family housing for rent when no real estate agent is involved
A religious organization restricting people based on national origin
109
Federal Laws Governing Real Estate Activities:
Quiz:
Invoking fear of a local ethnic change in order to get a client to sell their home quickly is considered:
Block busting
Redlining
An exemption
Steering
Block busting
110
Federal Laws Governing Real Estate Activities:
Quiz:
A new multi-story apartment complex with no elevator is not required to have:
ADA units on the 2nd floor
Hallways wide enough for wheelchairs
Reinforced bathroom walls for grab bars
Door knobs accessible to wheel chairs
ADA units on the 2nd floor
111
Federal Laws Governing Real Estate Activities:
Quiz:
A lender refusing to make home loans in a particular area is considered:
Block busting
Redlining
An exemption
Steering
Redlining
112
Federal Laws Governing Real Estate Activities:
Consumer Financial Protection Bureau [CFPB]:
* Created in 2010 under legislation known as the ________ Act.
* In response to the mortgage meltdown and financial crisis of 2008-2010.
Dodd-Frank Act
113
Federal Laws Governing Real Estate Activities:
Consumer Financial Protection Bureau [CFPB]:
* Creation was designed to consolidate many government agencies into ________.
* Brought new regulation to the Lending and Real Estate industry.
One
114
Federal Laws Governing Real Estate Activities:
Consumer Financial Protection Bureau [CFPB]:
o Created a ________ for mortgage lenders.
Licensing System
115
Federal Laws Governing Real Estate Activities:
Consumer Financial Protection Bureau [CFPB]:
o Created uniform lending ________ and _________.
* Loan estimate, closing disclosure, and settlement statement.
Guidelines and Disclosures
116
Federal Laws Governing Real Estate Activities:
Consumer Financial Protection Bureau [CFPB]:
* Mandates _______ Agreements be disclosed and acknowledged by all parties.
Tie-In
117
Federal Laws Governing Real Estate Activities:
Consumer Financial Protection Bureau [CFPB]:
o _______ means an agreement or a disclosure between two parties tying related services together.
Tie-In Agreement
118
Federal Laws Governing Real Estate Activities:
Consumer Financial Protection Bureau [CFPB]:
o By using the mortgage company and the title company owned by the same firm, the consumer could potentially receive a _______.
- IMPORTANT: This needs to be disclosed, let it be a title company, mortgage company, relationship with a vendor etc., and the consumer needs to sign this document.
Discount
119
Federal Laws Governing Real Estate Activities:
Consumer Financial Protection Bureau [CFPB]:
o By using the mortgage company and the title company owned by the same firm, the consumer could potentially receive a discount.
- IMPORTANT: This needs to be disclosed, let it be a title company, mortgage company, relationship with a vendor etc., and the consumer needs to _______ this disclosure documentation.
Sign
120
Federal Laws Governing Real Estate Activities:
Consumer Financial Protection Bureau [CFPB]:
* Directly affected the way borrowers applied for and are granted credit.
o Changed the _______ as well by creating new forms of disclosure.
Closing Procedures
121
Federal Laws Governing Real Estate Activities:
Consumer Financial Protection Bureau [CFPB]:
o Intent was to ‘_______’.
Protect The General Public
122
Federal Laws Governing Real Estate Activities:
Consumer Financial Protection Bureau [CFPB]:
o According to many, it has actual hurt lenders and lending by making loans _______ to obtain and hence has slowed the economic recovery of the housing market.
Harder
123
Federal Laws Governing Real Estate Activities:
Equal Credit Opportunity Act (ECOA):
* The _______ enforces compliance with regards to Equal Credit Opportunity Act (ECOA).
Federal Trade Commission (FTC)
124
Federal Laws Governing Real Estate Activities:
_______:
* Prohibits discrimination during the process of granting credit.
Equal Credit Opportunity Act (ECOA)
125
Federal Laws Governing Real Estate Activities:
Equal Credit Opportunity Act (ECOA):
* Mandates that credit applications only be considered only on the basis of:
1.
2.
3.
4.
1. Job Stability
2. Credit Rating
3. Income
4. Net Worth
126
Federal Laws Governing Real Estate Activities:
Equal Credit Opportunity Act (ECOA):
* There are a total of Eight Protected classes that fall under the Equal Credit Opportunity Act (ECOA).
* Illegal to discriminate based on any of the protected classes when applying for credit:
1.
2.
3.
4.
5.
6.
7.
8.
1. Race
2. Color
3. Religion
4. National Origin
5. Sex
6. Age
7. Marital Status
8. Public Assistance Dependence
127
Federal Laws Governing Real Estate Activities:
Equal Credit Opportunity Act (ECOA):
* There is NO Maximum age limit for those applying for credit.
o IMPORTANT: The ‘minimum’ age to apply for credit in AZ is _______ years old.
18 Years
128
Federal Laws Governing Real Estate Activities:
Equal Credit Opportunity Act (ECOA):
* Marriage or marital status can only be questioned if both parties are applying _______.
Jointly
129
Federal Laws Governing Real Estate Activities:
Equal Credit Opportunity Act (ECOA):
* Public assistance individuals can claim forms of _______ that are supplied by government sources and include social security, food stamps or housing vouchers.
Income
130
Federal Laws Governing Real Estate Activities:
Equal Credit Opportunity Act (ECOA):
Quiz:
Choose the correct protected classes under the ECOA
Age
Weight
Religion
Sex
Political party
Marital status
Age
Religion
Sex
Marital status
131
Federal Laws Governing Real Estate Activities:
Fair Credit Reporting Act:
* Rejected applicants who applied for credit MUST be informed in _________ the reason(s) they were denied credit by the lender/creditor.
Writing
132
Federal Laws Governing Real Estate Activities:
Fair Credit Reporting Act:
* Report must include the reason(s) they were
denied credit by the lender/creditor MUST be sent out within _________ Days of applicant's denial.
o INCLUDING a copy of their (the applicant’s) credit report that was used to deny the application.
30 Days
133
Federal Laws Governing Real Estate Activities:
Fair Credit Reporting Act:
* Report must include the reason(s) they were
denied credit by the lender/creditor MUST be sent out within 30 Days of applicant's denial.
o MUST include a copy of their (the applicant’s) _________ that was used to deny the application.
Credit Report
134
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* _________:
This law passed to prevent the artificial raising of prices by restriction of trade or supply and to break up monopolies.
Sherman Anti-Trust Act of 1890
135
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* Sherman Anti-Trust Act of 1890:
o Federal law that prohibits activities that restrain _________ practices.
Fair Trade
136
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* Sherman Anti-Trust Act of 1890:
o _________:
A Violation of the Anti-Trust act, It is a form of refusal to deal, and can be a method of shutting a competitor out of a market or preventing entry of a new firm into a market.
Boycott
137
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* Sherman Anti-Trust Act of 1890:
o Tie-In Agreements:
Forcing a consumer to use a specific lender by tying in the _________ is illegal. You can’t state that you must use a provider of services in order to get something.
Incentives
138
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* Sherman Anti-Trust Act of 1890:
o _________:
Different firms cannot agree to operate or not operate in a specific area. You can’t divide up regions, territories, or agree to not compete – this is an unfair business practice to consumers.
Restraint Of Trade
139
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* Sherman Anti-Trust Act of 1890:
o Forbids any type of price _________ in any industry including commissions.
Fixing
140
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* Sherman Anti-Trust Act of 1890:
o The penalties for violating the Sherman Act can be severe:
o Criminal penalties of up to $_________ Million for a Corporation.
o $1 Million for an Individual found guilty.
$100 Million
141
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* Sherman Anti-Trust Act of 1890:
o The penalties for violating the Sherman Act can be severe:
o Criminal penalties of up to $100 Million for a Corporation.
o $_________ Million for an Individual found guilty.
$1 Million
142
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* Sherman Anti-Trust Act of 1890:
o Brokers cannot collude with other firms to ‘________’.
Set A Standard Rate
143
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* Sherman Anti-Trust Act of 1890:
o INDIVIDUAL brokers can set ________ commission limits.
I.e. If a broker’s firm stipulates agents cannot accept listings for less than a set amount of commission, this is LEGAL.
Minimum
144
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* ________:
This prohibits mergers and acquisitions where the effect is to lessen competition or to create a monopoly.
Clayton Act
145
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* ________:
o Enforces the Sherman Antitrust Act and the Clayton Act.
Federal Trade Commission Act
146
Federal Laws Governing Real Estate Activities:
Anti-Trust Acts:
* Federal Trade Commission Act:
o Bans unfair ________ of competition and unfair or deceptive acts or practices
REMEMBER: Protecting the General Public is the goal.
Methods
147
Federal Laws Governing Real Estate Activities:
________:
* The Federal Trade Commission (FTC) maintains a SUBSCRIBER list of phone numbers where the owners do not want to be
contract by unsolicited sales calls, robo-calls or pre-recorded calls.
Do Not Call Registry
148
Federal Laws Governing Real Estate Activities:
Do Not Call Registry:
* Real Estate industry and cold calling have long been an accepted form of practice, but agents need to be ________ of the do not call list to ADHERE to federal rules.
Aware
149
Federal Laws Governing Real Estate Activities:
Do Not Call Registry:
* The Federal Trade Commission (FTC) mandates that brokers must ________ call lists through a database of those on the do not call list before calling on for sale by owners, expired listings, or any form of prospecting.
Scrub
150
Federal Laws Governing Real Estate Activities:
Do Not Call Registry:
* The Federal Trade Commission (FTC):
* Violators may be subject to fines of up to $________ per call violation.
* This is not a misprint or a typo.
$16,000
151
Federal Laws Governing Real Estate Activities:
Do Not Call Registry:
* The Federal Trade Commission (FTC):
* Fines for making illegal robocalls can be fined up to $________ per call.
* This is not a misprint or a typo.
$40,654
152
Federal Laws Governing Real Estate Activities:
Cyber Crime:
________ is most definitely on the rise, and it is seen frequently in real estate transactions.
Identity Theft
153
Federal Laws Governing Real Estate Activities:
Cyber Crime:
- Causes can sometimes be due to carelessness:
* Identity theft is possible due to the broker/agent leaving documents out in the ________.
Open
154
Federal Laws Governing Real Estate Activities:
Cyber Crime:
*In some cases, advertising on social media about a buyer/seller, the criminals can locate the property, title company, parties etc. and ________ wiring directions.
Thieves can take this info and use it to get credit in your client’s names or have wires sent to third parties accounts.
Spoof
155
Federal Laws Governing Real Estate Activities:
Cyber Crime:
* The ________ Act involves the handling and protection of sensitive personal
information that individuals provide in the course of everyday transactions.
Consumer Privacy Act (CPA)
156
Federal Laws Governing Real Estate Activities:
Cyber Crime:
* Wire Fraud is most assuredly on the rise. Protecting your clients from wire fraud is only to EDUCATE them – Do NOT wire your money without ____________ authorization from the escrow company.
Verified
157
Federal Laws Governing Real Estate Activities:
Cyber Crime:
Quiz:
What is the Sherman Antitrust Act?
Prohibits mergers and acquisitions where the effect is to lessen competition or to create a monopoly
Law passed in 1890 to prevent the artificial raising of prices by restricting trade/supply and breaking up monopolies
Allows individual brokers to set up commissions list
Sets a criminal penalty of $500 million for corporations
Law passed in 1890 to prevent the artificial raising of prices by restricting trade/supply and breaking up monopolies
158
Federal Laws Governing Real Estate Activities:
Wire Fraud Addendum:
Wire Fraud Advisory:
Notice this is an "____________" document and is used in a lot of agents transactions. By having the client sign this advisory, it places a distance between the agents and the potential for a case if a client were ever to fall victim to wire fraud.
This form to be used solely and exclusively by members of the Arizona Association Of Realtors®
Advisory
159
Federal Laws Governing Real Estate Activities:
Case Study:
If any of the government-prohibited activities are violated (steering, blockbusting, redlining), who is responsible? How will you prevent yourself from unintentionally breaking one of these rules?
If clients ask a licensee to violate any of these laws, it is up to the licensee to refuse (no pointing the finger at the clients later on). Never say, “you don’t want to live in that area.” Similarly, don’t use Religious Landmarks as a point of reference, and never suggest that an area is of a “predominant class of people.”
160
Federal Laws Governing Real Estate Activities:
Case Study:
What is the difference between the Clayton Act and the Sherman Antitrust Act?
The Clayton Act prohibits mergers and acquisitions where the effect is to lessen competition or create a monopoly, while the Sherman Antitrust Act of 1890 law was passed to prevent the artificial raising of prices by restricting trade or supply and to break up monopolies.
161
Federal Laws Governing Real Estate Activities:
Case Study:
Your broker has instructed all agents to refrain from showing the listings of a competing brokerage to potential buyers. Is this legal?
No, this is an effort to boycott, most likely to harm the competitors. This is an illegal business practice under the Sherman Anti-Trust Act.
162
Federal Laws Governing Real Estate Activities:
Case Study:
Your broker prohibits agents from taking on clients offering less than 2.5% commission for selling their property. Is this legal?
This is legal if a broker’s firm stipulates that agents cannot accept listings for less than a set amount of commission.
163
Federal Laws Governing Real Estate Activities:
Quiz:
What is not a consideration when determining credit worthiness?
Job Stability
Marital Status
Net Worth
Income
Net Worth
164
Federal Laws Governing Real Estate Activities:
Quiz:
What law was created in 1890 to prohibit artificial raising of prices by restriction of supply?
Sherman antitrust act
Clayton act
Federal trade commission act
Federal fair housing act
Sherman Anti-Trust Act
165
Federal Laws Governing Real Estate Activities:
Quiz:
A applicant recently applied for a mortgage and was denied. She had perfect credit, a good job and earned enough to cover this small loan. What possible reason could she have been denied?
She failed a background check
Her employment didn't count
The loan wasn't government insured
She was 17 at the time the application was made
She was 17 at the time the application was made.
166
Federal Laws Governing Real Estate Activities:
Quiz:
After the mortgage melt down in 2008, this agency was created which now makes all home loan lenders obtain licensing:
NMBA
USDA
CFPB
MMNA
CFPB
167
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* The Four Government Powers/Rights:
[Remember: PETE]:
1.
2.
3.
4.
1. Police Power
2. Eminent Domain
3. Taxation
4. Escheat
168
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* ________:
Laws that allow government to limit private land use through various efforts.
Police Powers
169
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* ________:
Power given to the states to pass legislations in real estate and gives them the ability to transfer this power to the local sector through these documents.
Enabling Acts
170
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Enabling Acts:
o Power is then given by the state to ________ governments (county, city,
municipalities) through enabling acts.
Local
171
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Enabling Acts:
o Used to enforce building codes, zoning laws, etc., provided they are ________ to everyone and reasonable.
Equitable
172
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Enabling Acts:
o Property owners are NOT required to be ________ when this is the cause of disruption.
Compensated
173
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* ________:
Using land for development is subject to the local government’s review and approval.
Land Use Controls
174
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Land Use Controls:
o Assures new development will NOT have an overwhelming _______ impact on the area.
Adverse
175
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Land Use Controls:
o ________ are given the authority through enabling acts to determine the best course of action in the determination of the adverse effect of a new development to the new area.
Municipalities
176
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
The details of a municipality’s’ ________.
Master Plan
177
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
o Also known as a ________ or ________ , it provides the vision and policies that determine how a city will grow and develop:
o Considers:
1. Land Use
2. Housing Needs
3. Movement of People and Goods
4. Community Facilities and Utilities
5. Energy Conservation
General Plan or Comprehensive Plan
178
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
o Also known as a General Plan or Comprehensive Plan, it provides the vision and policies that determine how a city will grow and develop:
o Considers:
1.
2.
3.
4.
5.
1. Land Use
2. Housing Needs
3. Movement of People and Goods
4. Community Facilities and Utilities
5. Energy Conservation
179
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* ________:
o Regulates use of lots, including size, heights and types of structures.
Zoning
180
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
o Enforced through Building ________.
Permits
181
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
o Land use divided generally into ________ Zones, each with divisions.
5
182
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning: The details of a municipality’s’ Master Plan:
o Land use divided generally into 5 Zones, each with divisions:
1.
2.
3.
4.
5.
1. Residential
2. Commercial
3. Industrial
4. Agricultural
5. Special Purpose/Mixed Use
183
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning: The details of a municipality’s’ Master Plan:
o Land use divided generally into 5 ZONES, each with divisions:
________:
Single family, Multi-family, and High Density.
Residential Zone
184
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning: The details of a municipality’s’ Master Plan:
o Land use divided generally into 5 ZONES, each with divisions:
________:
Retail, shopping centers, and businesses.
Commercial Zone
185
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning: The details of a municipality’s’ Master Plan:
o Land use divided generally into 5 ZONES, each with divisions:
________:
* Light industrial, medium industrial, chemical, and manufacturing, etc.
Industrial Zone
186
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning: The details of a municipality’s’ Master Plan:
o Land use divided generally into 5 ZONES, each with divisions:
________:
* Growing crops, raising animals, dairy, and grazing.
Agricultural Zone
187
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning: The details of a municipality’s’ Master Plan:
o Land use divided generally into 5 ZONES, each with divisions:
________:
* Mining and unique variances, specific city designated uses.
Special Purpose/Mixed Use Zone
188
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning means the details of a municipality’s’ Master Plan:
o ________:
Areas that may be used to separate zoning classifications.
ex. residential and commercial zoning areas that are divided by a green belt or park that separates the two different areas.
Buffer Zones
189
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Land Use Controls:
________:
The city/county/state has the ability to dictate how, where and what gets built. In an effort to maintain an aesthetically pleasing landscape, there are ways that the police powers of zoning can help soften an otherwise hard landscape of all buildings.
Police Power
190
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning means the details of a municipality’s’ Master Plan:
o ________:
Found in Scottsdale and other areas, these designations restrict what can be done with a piece of land, and is designed to protect and enhance the
natural desert.
o Occasionally mixed-use zones are used.
Natural Area Open Space (NAOS)
191
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Quiz:
Which of these are one of the five zones in which land is separated?
General land
Residential
Conservation
Industrial
Residential
Industrial
192
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning means the details of a municipality’s’ Master Plan:
o Zoning in itself, would violate the ________ of the US Constitution because it would allow states to prevent any person of life, liberty or property without due process of law.
To avoid this, public forums, also referred to as public hearings, must be held before zoning ordinances can be enacted.
14th Amendment
193
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning means the details of a municipality’s’ Master Plan:
o Zoning in itself, would violate the 14th Amendment of the US Constitution because it would allow states to prevent any person of life, liberty or property without due process of law.
To avoid this, public forums, also referred to as ________, must be held before zoning ordinances can be enacted.
Public Hearings
194
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning means the details of a municipality’s’ Master Plan:
o Additionally, to ensure no state provisions of the State’s constitution are infringed upon, a series of tests are commonly applied to NEW or PROPOSED zoning ordinances:
1. Are the ________ clear and specific?
2. Can the power be exercised in a ________ manner?
3. Is the ordinance free from ________?
4. Does the ordinance ________ public health, safety and general welfare?
5. Does it apply to ________ property in a similar manner?
Provisions
Reasonable
Discrimination
Promote
All
195
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
o Property owners are required to obtain a ________ before beginning any development in order to monitor for compliance of zoning ordinances.
Permit
196
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
o If a building or land was used in CONTRARY to current zoning ordinances BEFORE those ordinances were in effect, a ________ Clause allows the owner(s) to continue with some limitations.
Grandfather
197
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
o If a building or land was used in CONTRARY to current zoning ordinances BEFORE those ordinances were in effect, a grandfather clause allows the owner(s) to continue with
some limitations:
The building ________ be remodeled, enlarged, or rebuilt.
Cannot
198
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
* Arizona 811 (Blue Stake): Underground facility operators who have utilities buried at your site will send qualified personnel – called ________ – to your dig site to identify and mark the facilities before you build.
Locators
199
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
* ________:
Underground facility operators who have utilities buried at your site will send qualified personnel – called Locators – to your dig site to identify and mark the facilities before you build.
Arizona 811 (Blue Stake)
200
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
o If a building or land was used in CONTRARY to current zoning ordinances BEFORE those ordinances were in effect.
A grandfather clause allows the owner(s) to continue with
some limitations:
The property use CANNOT ________.
Change
201
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
o If a building or land was used in CONTRARY to current zoning ordinances BEFORE those ordinances were in effect, a grandfather clause allows the owner(s) to continue with
some limitations:
If ________ for 12 months or more, the grandfather zoning status will also END.
Abandoned
202
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Zoning:
o If a building or land was used in CONTRARY to current zoning ordinances BEFORE those ordinances were in effect
a grandfather clause allows the owner(s) to continue with
some limitations:
If the property were destroyed, burned, or demolished, the owner would NOT be able to rebuild as the new property would have to ________ to the new zoning status. This would void the grandfather clause.
Conform
203
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o ________:
Allow permanent exceptions for 1 specific property.
Variances
204
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o Variances:
Allow permanent exceptions for 1 specific property:
Considered an ________ violation of the zoning ordinance.
Authorized
205
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o Variances:
Allow permanent exceptions for 1 specific property:
The owner must indicate how they would otherwise be deprived of ________ of their land without the variance being granted.
Reasonable Use
206
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o ________:
These are not violations of the zoning ordinance and allow something different than what was originally determined.
Special Use Permits
207
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o Special Use Permits:
Considered a ________ exception and are generally easier to get approved.
Ex. A church being built in a residential area.
Special
208
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o ________:
These regulate building and construction standards including quality, design and occupancy.
Building Codes
209
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o Building Codes:
Enforced through permits and periodic ________.
Inspections
210
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o Building Codes:
Merely show ________ with municipal regulations and do NOT ensure compliance with Covenants, Conditions and Restrictions (CC&Rs).
Compliance
211
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o Building Codes:
Merely show compliance with municipal regulations and do NOT ensure compliance with ________.
Covenants, Conditions and Restrictions (CC&Rs)
212
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o Building Codes:
* ________:
Government issued certificate that confirms that there are no building code violations and that it is ready for occupancy.
Certificate of Occupancy
213
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o Building Codes:
* Certificate of Occupancy:
Required before occupancy of the home and financing from a ________.
Lender
214
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o ________:
The right of the government to take privately owned land for the good of the people with compensation owed to the owner.
Eminent Domain
215
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o Eminent Domain:
Property owner must be fairly ________Compensated.
216
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o Eminent Domain:
The process of taking the land is called ________.
Condemnation
217
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
o Eminent Domain:
“Condemnation is the ________' Eminent Domain is the ACT”.
Process
218
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Quiz:
What is an example of Special Use Permits?
Remodeling a large living space
Removing mold from a residence
A church being built in a residential area
Extending size of a home
A church being built in a residential area
219
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Eminent Domain:
o ________:
This can be forced by property owners to receive compensation when government action has caused the inability to use their property or be compensated for significant loss in value.
Inverse Condemnation
220
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Eminent Domain:
o Condemnation is the Process. Eminent Domain is the _________ or _________.
Power or Act
221
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* _________:
The government has the right to impose (levy) taxes on real and personal property to provide services for the benefit of the people.
Taxation
222
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* _________:
This is the Latin term meaning being taxed according to value.
Remember: VAL means Value
This is the common ‘property tax’ that most people are familiar with.
Ad Valorem
223
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* _________:
These are taxes that are specific and unique and are assessed against real property for certain public projects.
Special Assessments
224
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Special Assessments:
o States, counties, or even cities, using government _________ can create these taxes.
Powers
225
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Special Assessments:
o Taxed according to who _________ from the use of the property.
Benefits
226
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* Special Assessments:
o A city may levy a special assessment tax on properties whereby those properties that benefit from some _________ pay the tax. The rule is those who enjoy it, pay for it.
Improvement
227
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
* _________:
Property reverting back to the state when an individual dies without a will or heirs.
Escheat
228
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Escheat:
o _________:
Dying without a will.
Unknown heirs have 7 YEARS to come forward.
Intestate
229
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Escheat:
o _________:
Applies to intestate situation when a person HAS heirs.
State Laws of Descent
230
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Escheat:
o State Laws of Descent:
Defines the order of who’s entitled to the decedent’s property after _________.
Probate
231
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Escheat:
o _________:
The deceased person.
Decedent
232
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Escheat:
o Probate:
Formal court proceedings that confirm:
1. Will _________
2. _________ Collection
3. Decedents' Debts including Taxes are _________
4. The Decedent’s Remaining Assets are _________ of
Validity
Asset
Paid
Disposed
233
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Escheat:
o Probate:
Formal court proceedings that confirm:
1.
2.
3.
4.
1. Will validity
2. Asset collection
3. Decedents' debts (including taxes) are paid
4. The decedent’s remaining assets are disposed of
234
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Escheat:
o Probate:
Formal _________ proceedings that confirm will validity.
Court
235
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Escheat:
Real Life Note:
EVEN if you have a will, in the State of Arizona, you have to have a _________ set up to avoid probate after death. As you now know, we cannot provide legal advice, but we URGE you to seek out the information on how to protect you and your estate upon death. Take one thing from this course... set yourself and your heirs/family to NOT go through probate.
Trust
236
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Quiz:
The four government powers in real estate are…
Probate, Eminent Domain, Taxation, Escheat
Police Power, Eminent Domain, Taxation, Escheat
Police Power, Eminent Decedent, Intestate, Taxation
Police Power, Will Validity, VAL, Special Assessments
Police Power, Eminent Domain, Taxation, Escheat
237
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Case Study:
Name the four Government Powers in real estate
The Four Government Powers (Rights)
1. Police Power
2. Eminent Domain
3. Taxation
4. Escheat
238
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Case Study:
How is the legal power given from the federal government to the city of Goodyear to enforce zoning rules as law?
To ensure no state provisions of the State’s constitution are infringed upon, a series of tests are commonly applied to proposed zoning ordinances:
1. Are the provisions clear and specific?
2. Can the power be exercised reasonably?
3. Is the ordinance free from discrimination?
4. Does the ordinance promote public health, safety, and general welfare?
5. Does it apply to all property in a similar manner?
239
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Case Study:
A new public school is built in an “isolated” neighborhood to reduce student bus ride times. The cost of this project is then passed on to the property owners living within the community. In addition to paying Property Tax, what tax will these owners have to pay?
Special Assessments are specific and unique taxes that are assessed against real property for specific public projects. States, counties, or even cities, using government powers can create. They are taxed according to the benefit of the use of the property.
240
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Case Study:
When someone dies Intestate, when do the State Laws of Descent apply?
Intestate is dying without a will. In this case, unknown heirs have seven years to come forward. State Laws of Descent applies to intestate situations when a person HAS heirs. It defines the order of who’s entitled to the decedent’s property after probate.
241
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Quiz:
What must states do to pass zoning and still prevent infringement on the 14th amendment?
Send out mailers
Ensure that it does not place an unnecessary burden on citizens
Hold a public forum
Grandfather status
Hold a public forum
242
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Quiz:
All of the following except one are powers that the government has over real property:
Land Valuation
Police power
Taxation
Escheat
Land Valuation
243
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Quiz:
Building codes are enforced by:
General contractors
City state and local building inspectors
Owner/operator
Federal bureau of building safety
City state and local building inspectors
244
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Quiz:
The governments taking land for the good of the people is referred to as:
Eminent domain
Condemnation
Inverse condemnation
Repossession
Eminent domain
245
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Quiz:
What additional tax do property owners need to pay if their parcel has been identified as having received a direct and unique benefit from a public project?
Property tax
Special assessment tax
Public services fee
County assessment tax
Special assessment tax
246
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Quiz:
A permanent exception for 1 specific property to zoning laws is referred to as a:
Variance
Buffer Zone
Building code
Ordinary use permit
Variance
247
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Quiz:
What gives individual states the right to pass legislation used in real estate?
Land use controls
Zoning
Eminent domain
Enabling Acts
Enabling Acts
248
Federal Laws Governing Real Estate Activities:
Government Powers in Real Estate:
Quiz:
What government power gives the state the right to take property from an individual who dies without a will or heirs?
Escheat
Intestate
Decedent
Probate
Escheat
