Unit 12 Flashcards
Human rights and fair housing
Tennessee human rights legislation is contained in Title 4, Chapter 21, of the Tennessee Code (“The Tennessee Human Rights Act”). Part 6 of the act contains the Tennessee fair housing legislation.
The Tennessee Human Rights Act is enforced by the Tennessee Human Rights Commission. However, the Tennessee Human Rights Commission must notify the Real Estate Commission in writing if any broker or affiliated broker is found to be in violation of the law or has failed to obey any order issued by the Human Rights Commission. (4-21-607)
Tennessee fair housing law is similar to the federal law, with the addition of a protected class, creed, making the protected classes regarding employment and public accommodations:
race creed color religion sex age national origin
Regarding housing, age is not a protected class. (4-21-101)
In residential real estate-related transactions, discrimination on the basis of the protected classes above is explicitly declared illegal, with the addition of two more protected classes:
handicap
familial status
“Residential real estate-related transaction” specifically includes:
lending, where the security is residential real estate
selling, brokering, or appraising residential real estate
Differences from the federal laws
The following are exempt from the rules against discriminatory housing practices:
owner-occupants of properties consisting of one to two dwelling units, as opposed to the federal exemption for owner-occupants of one to four units
housing that has an occupancy percentage of 90% of units by at least one person who is age 55 or older, rather than 80% in the federal law
It is illegal in Tennessee for a broker or affiliate broker to obey the illegal instructions of a party who is not subject to the law.
Complaints of illegal discrimination are to be filed in writing with the Human Rights Commission.
Discriminatory practices in general
It is a discriminatory practice to:
deny an individual the full and equal enjoyment of the goods, services, facilities, privileges, advantages and accommodations of a place of public accommodation, resort or amusement, on the grounds of race, creed, color, religion, sex, age or national origin
retaliate or discriminate in any manner against a person for opposing a discriminatory practice
aid, abet, incite, compel or command a person to engage in any of the discriminatory acts or practices described by the Humans Rights Act
willfully interfere with the performance of a duty or the exercise of a power by the commission or one of its members or representatives
willfully obstruct or prevent a person from complying with the provisions of the human rights act or an order issued in accordance with it
violate the terms of a conciliation agreement made pursuant to the human rights act
Discriminatory housing practices
It is a discriminatory practice to do any of the following because of race, color, creed, religion, sex, handicap, familial status or national origin:
refuse to sell or rent after the making of a bona fide offer, or to refuse to negotiate for the sale or rental of real property or a housing accommodation
discriminate in the terms, conditions, or privileges of sale or rental of real property or a housing accommodation, or in the provision of services or facilities connected with it
refuse to receive or transmit a bona fide offer to purchase, rent or lease real property or a housing accommodation
represent that real property or a housing accommodation is not available for inspection, sale, rental or lease when in fact it is so available, or to refuse to permit a person to inspect real property or a housing accommodation
create and circulate any advertisement or application form that indicates any discrimination as to race, color, creed, religion, sex, handicap, familial status or national origin
be involved with a listing of real property or a housing accommodation with the knowledge that there will be discriminatory behavior in the transaction
deny or limit access to, or membership or participation in, any multiple-listing service or organization or service relating to the business of selling or renting dwellings
Human rights complaints
A person has 180 days after an alleged violation to file a written sworn complaint with the Human Rights Commission.
The H.R. Commission will give the complainant an acknowledgment of the complaint and give the respondent (alleged violator) a copy of the complaint within ten days of the filing.
The H.R. Commission will begin investigating the complaint within 30 days of the filing to determine whether the respondent has engaged in discriminatory behavior.
If the investigation determines that there has been a violation:
The H.R. Commission will attempt to end the practice through conference, conciliation and persuasion.
The Commission may ask a court to prevent the respondent from interfering with the Commission’s actions.
The Commission has the power to issue its own order to cease and desist.
For discriminatory housing practices, a violator may be fined:
$10,000 for a first offense
$25,000 for two offenses within the previous five years
$50,000 for three or more offenses within the previous seven years
Environmental protection
Hazardous waste
The Hazardous Waste Management Act of 1983 (Title 68, Chapter 212, part 2) regulates disposal of hazardous substances. The commissioner of environment and conservation issues orders for remediation of sites determined to be in violation of regulations or standards.
A property owner may have limited liability for cleanup if he or she made reasonable inquiry before acquiring the property and had no knowledge of, or reason to know of, previous uses of the site.
Septic systems
The Tennessee Department of Environment and Conservation must approve the installation of a privately owned sewage system prior to construction. It must be designed by a registered engineer, and obtain a permit from the Division of Groundwater Protection before operating it.
Lead-based paint
The Tennessee Lead-Based Paint Abatement Certification Act of 1997 (Title 68, chapter 131, part 4) outlines procedures and requirements for lead-based paint abatement activities in accordance with federal law.
Asbestos removal
Tennessee requires notification before removal of specified quantities of asbestos-containing material. The state may inspect a removal site and assess penalties if violations of standards are found. Residential properties of no more than four units are exempt unless the building is being demolished for commercial development or road widening.
Radon and UFFI
Tennessee has no requirements for radon testing or mitigation or for the use of urea formaldehyde foam insulation (UFFI).
Antitrust
The Tennessee Anti-Trust Law is contained in Title 47, Chapter 25, Trade Practices.
The Division of Consumer Affairs of the Tennessee Department of Commerce & Insurance receives complaints about unfair practices. Disputes such as those between landlord and tenant or shoddy residential construction would be handled by this office. Most other real estate-related complaints are referred to the Tennessee Real Estate Commission.
Though it does not specifically refer to real estate activities, Part I, Trusts: Unlawful Restraint of Trade & Discrimination, makes it illegal for real estate licensees :
to lessen full and free competition in the sale of properties
to enter into price-fixing agreements
Other Tennessee laws and practices
These are a few other laws and practices affecting the real estate licensee:
Property descriptions
Tennessee commonly uses the metes-and-bounds and lot and block number systems of legal description.
The rectangular or government survey method is used only in a few counties in the southeast, in the area called the Ocoee Land District.
Conveyances and transfers
Tennessee uses deeds of trust to secure debt. The trustee has “power of sale”: the trustor conveys the deed to the trustee to hold until the debt is paid or the loan is defaulted. In case of default, the trustee may sell the property and use the proceeds to pay the loan. (66-5-103)
Tennessee does not require a title search or title insurance. Most lenders will require a lender’s title insurance policy.
Surveys are not required by law. A lender may require one.
Transfer taxes
A transfer of real property in Tennessee is typically subject to the “Realty Transfer and Mortgage Tax.”
The realty transfer incurs a tax of 37 cents per $100 of value. The value is measured by the price paid in the transaction or the fair market value, whichever is greater.
The mortgage tax, at a rate of 11.5 cents per $100 of value, with the first $2,000 exempt, applies to mortgages, deeds of trust and selected other transactions. Leases, many types of liens and various other transactions are exempt from the tax.
