Unit 18 Quiz Questions

Question 1

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

a. Civil Rights Act of 1866
b. Fair Housing Amendments Act of 1988
c. Housing and Community Development Act of 1974
d. Civil Rights Act of 1968

Answer 1

Fair Housing Amendments Act of 1988

The Fair Housing Amendments Act of 1988 added disability and familial status to the list of protected classes of individuals. 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 2

The Fair Housing Act is administered by the

a. Office of Equal Opportunity.
b. Department of Housing and Urban Development.
c. Department of Justice.
d. federal court system.

Answer 2

Department of Housing and Urban Development

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 3

The Fair Housing Act does NOT prohibit discrimination on the basis of

a. familial status.
b. national origin.
c. religious preference.
d. sexual preference.

Answer 3

Sexual Preference

Sexual preference is not a protected class under the federal law, but it has been added to many city and state fair housing laws.

Question 4

Which of these are exempt from the federal Fair Housing Act?

a. Owner-occupied buildings with no more than four units
b. Buildings subject to the ADA Standards for Accessible Design
c. Buildings that are not publicly advertised as being for sale or for rent
d. None of these

Answer 4

Owner-occupied buildings with no more than four units.

Other exemptions include single-family housing sold or rented without the use of a real estate professional and housing operated by organizations and private clubs that limit occupancy to members.

Question 5

Real estate professionals may have a legal obligation to comply with the ADA because they

a. often have clients with disabilities.
b. frequently own their own homes.
c. may be employers.
d. may need to require reasonable accommodation in a home they have listed.

Answer 5

May be employers

Many real estate professionals are brokers and employ sales associates and staff; in addition, the real estate office should be accessible to the public, including a person with a disability.

Question 6

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

a. is guilty of steering.
b. is guilty of blockbusting.
c. has committed no offense.
d. has violated the HUD advertising guidelines.

Answer 6

Has committed no offense.

Although perhaps in poor taste, the broker is simply distributing a published newspaper article to which anyone has access. The broker is also not making any statements about a protected class of people moving into the neighborhood.

Question 7

A newspaper advertisement states, “One-bedroom apartment immediately available. Good neighborhood. Only able-bodied individuals should apply.” Which of these is TRUE?

a. The ad is not permitted under HUD’s advertising guidelines because it discriminates on the basis of disability.
b. The ad is acceptable under HUD’s advertising guidelines.
c. The ad is not permitted under HUD’s advertising guidelines due to the remark, “Good neighborhood.”
d. Newspapers are inherently discriminatory because not everyone can afford to buy them.

Answer 7

The ad is not permitted under HUD’s advertising guidelines because it discriminates on the basis of disability.

The ad discriminates against prospective tenants who are disabled. The remark, “Good neighborhood,” is acceptable pursuant to HUD advertising guidelines.

Question 8

Under what conditions can someone refuse to rent to an African-American on the basis of race?

a. Never
b. If the owner is also living in one of the apartments of a small apartment building
c. If the owner is handling the leasing without the aid of a real estate professional
d. If the owner is a small investor and is selling one of the three houses

Answer 8

Never

Under the Civil Rights Act of 1866, as reinforced by the Jones v. Mayer Supreme Court decision, there are no exemptions that permit someone to discriminate in housing simply because of someone’s race.

Question 9

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

a. Investigates for reasonable cause to bring a charge
b. Holds an administrative hearing
c. Issues an injunction against the offender
d. Files a civil action in federal district court

Answer 9

Investigates for reasonable cause to bring a charge.

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 10

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

a. a repeal of the facilities and services requirements designed to help older persons with physical and social needs.
b. the addition of sex to the list of protected classes.
c. a change that made the penalties for violations more severe, and also added additional damages.
d. the addition of religion to the list of protected classes.

Answer 10

A change that made the penalties for violations more severe, and also added additional damages.

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 11

Under the Civil Rights Act of 1968, what is the time limit to file a housing discrimination complaint with HUD?

a. 100 days
b. 1 year
c. 2 years
d. The same as the statute of limitations for torts committed in the state in which the alleged discriminatory act occurred

Answer 11

1 year

Persons who wish to file a complaint with HUD under Title VIII of the Civil Rights Act of 1968 must do so within one year of the alleged violation.

Question 12

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

a. the federal law is substantially more inclusive than the state or municipal law.
b. HUD determines that an administrative law judge should decide the case.
c. the state or municipal law is substantially equivalent to the federal law.
d. the complaint involves a real estate professional who is the victim of a threat or act of violence because the professional has complied with the fair housing laws.

Answer 12

The state or municipal law is substantially equivalent to the federal law.

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 13

In the context of a dispute before HUD, the term conciliation is BEST defined as the

a. equivalent of paying a fine.
b. informal resolution of a dispute by obtaining assurances that the person responding to the complaint will remedy the violation.
c. referral of the matter to a local agency.
d. formal process under which the aggrieved party files a civil action in federal court.

Answer 13

Informal resolution of a dispute by obtaining assurances that the person responding to the complaint will remedy the violation.

HUD can attempt to resolve a dispute informally through conciliation. Conciliation is the resolution of a complaint by obtaining assurance that the person against whom the complaint was filed will remedy any violation that may have occurred

Question 14

All of these people are considered members of protected classes EXCEPT

a. a member of Alcoholics Anonymous.
b. a visually disabled person with a seeing-eye dog.
c. a person diagnosed with AIDs.
d. a person convicted of the manufacture or distribution of illegal drugs.

Answer 14

A person convicted of the manufacture or distribution of illegal drugs.

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

Question 15

A homeowner decides to rent a spare bedroom in her house to a tenant for $500 per month. When a 24-year-old man asks to see the room, the homeowner refuses, telling him that she will only rent to a woman over the age of 50. The prospective tenant threatens to sue for a
violation of the Fair Housing Act on the basis of age. Should the homeowner be concerned?

a. Yes, because the amount of rent being charged is immaterial for purposes of the Fair Housing Act.
b. Yes, because while the homeowner is permitted to exclude individuals on the basis of age or sex, she cannot exclude on the basis of both.
c. No, because the rental of rooms in an owner-occupied single-family home is exempt from the Fair Housing Act.
d. No; because there was no real estate professional involved in this transaction, the homeowner is free to discriminate on the basis of any of the normally protected classes.

Answer 15

No, because the rental of rooms in an owner-occupied single family home is exempt from the Fair Housing Act.

The woman is exempt from the law because she will be renting a single room in her home.

Question 16

A seller tells a real estate broker, “Don’t show my house to anybody not born in the United States.” In this circumstance, the broker

a. must show the house to anyone who wants to see it.
b. must decline to take the listing with that requirement.
c. may take the listing and ignore the instruction.
d. may take the listing and hope that no foreign-born persons ask to see the property.

Answer 16

Must decline to take the listing with that requirement

An instruction to not show the home to someone who was not born in the United States violates the Fair Housing Act. The real estate broker should not take the listing with this
requirement. The broker cannot simply ignore the instruction.

Question 17

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

a. stereotyping.
b. blockbusting.
c. redlining.
d. steering.

Answer 17

Steering

Channeling home seekers toward or away from particular neighborhoods based on national origin, or any of the other protected classifications, is called steering.

Question 18

A pregnant woman who already has two children met with a landlord to view a two-bedroom apartment. The landlord told her that the rules of the building allow only two children per two-bedroom apartment, so a two-bedroom unit cannot be rented to her. Is this a violation of
the Fair Housing Act?

a. No, rental standards can include a restriction on the number of occupants in an apartment.
b. No, the Fair Housing Act allows property owners to limit the number of children in a development.
c. Yes, indicating a preference for a certain number of children as occupants is illegal discrimination based on familial status.
d. Yes, until the third child is born, the woman meets the standards for the number of
children in the family.

Answer 18

Yes, indicating a preference for a certain number of children as occupants is illegal discrimination based on familial status.

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

Question 19

A landlord rented an apartment to a person who must use a wheelchair. The landlord allowed the tenant to install bath rails and replace the bathroom sink vanity with a pedestal sink with lever faucet handles, but the landlord required the tenant to sign a restoration agreement that
the accommodations would be restored to their former condition at the end of the lease term. In addition, the landlord required the tenant to pay sufficient funds (over a period of time) into an escrow account to restore the bathroom. Has the landlord violated the Fair Housing
Act?

a. No, the landlord can require a restoration agreement and the escrow account.
b. No, the landlord does not have to allow the tenant to make any of these modifications.
c. Yes, the landlord cannot require restoration of the modifications.
d. Yes, the landlord cannot require the escrow account.

Answer 19

No, the landlord can require a restoration agreement and the escrow account.

The landlord must permit these reasonable modifications, but the landlord can require the restoration agreement and escrow account.

Question 20

An apartment complex is exempt from familial status protection under the Fair Housing Act if the housing is intended to be occupied by

a. at least one person in each unit who is 50 years of age or older.
b. persons 45 years of age or older.
c. persons 55 years of age or older.
d. at least one person who is age 60 or older in 80% of the units

Answer 20

Persons 55 years of age or older.

Housing is exempt from the familial status protections if it is intended for occupancy only by persons 55 years of age or older.

Question 21

For fair housing purposes, what is the definition of the term disability?

a. An impairment of mobility that prevents a person from using stairs
b. A physical impairment that requires a caregiver’s assistance
c. An impairment that prevents a person from holding a job
d. An impairment that substantially limits one or more of an individual’s major life activities

Answer 21

An impairment that substantially limits one or more of an individual’s major life activities

The definition of the term disability is very broad and focuses on impairments that prevent or restrict a person from performing tasks that are of central importance to most people’s lives.

Question 22

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 tenant in the apartment next door. Which of these is most likely TRUE?

a. Because the landlord has good intentions, there is no violation of the Fair Housing Act.
b. If the sick and elderly tenant is over the age of 80, there is no violation of the Fair Housing Act.
c. The refusal constitutes a violation of the Fair Housing Act if the family and the elderly tenant have different national origins.
d. The refusal constitutes a violation of the Fair Housing Act because it discriminates on the basis of familial status.

Answer 22

The refusal constitutes a violation of the Fair Housing Act because it discriminates on the basis of familial status

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 based on familial status.

Question 23

The provisions of the ADA apply to any employer with at least

a. 5 or more employees.
b. 10 or more employees.
c. 12 or more employees.
d. 15 or more employees.

Answer 23

15 or more employees

Employers must make reasonable accommodations that enable an individual with a disability to perform essential job functions.

Question 24

What is one negative result of redlining?

a. Appraisers have a difficult time evaluating properties in the area.
b. It is often a major contributor to the deterioration of older neighborhoods.
c. The effects test must be applied to determine whether to file a lawsuit.
d. Real estate professionals are not able to advertise in local newspapers.

Answer 24

It is often a major contributor to the deterioration of older neighborhoods.

Redlining is a prohibited practice by lenders, insurance companies, and real estate professionals. It frequently leads to the deterioration of older neighborhoods because loans are not made based on racial, ethnic, or other prohibited grounds as opposed to any real
objection to an applicant’s creditworthiness.

Question 25

The resolution of a fair housing complaint by obtaining assurance that the respondent will remedy the violation is called

a. conciliation.
b. administrative proceedings.
c. civil action.
d. a judgment.

Answer 25

Conciliation.

Conciliation is an attempt to resolve a complaint without further legal action, such as an
administrative proceeding. A conciliation agreement can be enforced through civil action.

Question 26

Under the Fair Housing Act, which action is legally permitted?

A. Advertising property for sale only to a special group
B. Altering the terms of a loan for a member of a protected class
C. Refusing to make a mortgage loan to a member of a protected class because of a poor credit history
D. Telling a member of a protected class that an apartment has been rented when in fact it has not

Answer 26

Refusing to make a mortgage loan to a member of a protected class because of a poor credit history.

The answer is refusing to make a mortgage loan to a member of a protected class because of a poor credit history. Bad credit can cause anyone to be rejected, even those who are members of protected classes.

Question 27

Complaints relating to the Civil Rights Act of 1866

A. must be taken directly to federal courts.
B. are no longer reviewed in the courts.
C. are handled by HUD.
D. are handled by state enforcement agencies.

Answer 27

Must be taken directly to federal courts.

The answer is must be taken directly to federal courts. Complaints under the Civil Rights Act of 1866 are heard in federal courts.

Question 28

Why is the Civil Rights Act of 1866 unique?

A. It has been broadened to protect the aged.
B. It adds welfare recipients as a protected class.
C. It contains “choose your neighbor” provisions.
D. It provides no exceptions that would permit racial discrimination.

Answer 28

It provides no exceptions that would permit racial discrimination

The answer is it provides no exceptions that would permit racial discrimination. Unlike other exemptions permitted under the federal Fair Housing Act of 1968, the Civil Rights Act of1866 allows no exceptions that would permit discrimination on the basis of race.

Question 29

A real estate professional said to a homeowner, “I hear they’re moving in. There goes the neighborhood! Better put your house on the market before values drop!” This is an example of what illegal practice?

A. Steering
B. Blockbusting
C. Redlining
D. Fraudulent advertising

Answer 29

Blockbusting.

The answer is blockbusting. Such statements, made by a person in real estate brokerage, constitute blockbusting—usually an attempt to get listings by frightening owners into selling by encouraging the belief that a member of a protected class is moving into the neighborhood. To do this for financial gain is a violation of the federal Fair Housing Act.

Question 30

The act of directing homeseekers toward or away from particular areas, either to maintain or to change the character of the neighborhood, is

A. blockbusting.
B. redlining.
C. steering.
D. permitted under the Fair Housing Act of 1968.

Answer 30

Steering

The answer is steering. A person who guides prospects either toward or away from certain neighborhoods based on racial, ethnic, religious, or similar concerns is guilty of steering. This practice is outlawed by the federal Fair Housing Act. Whether it is done to promote housing segregation or integration or whether it was intentional or unintentional is immaterial.

Question 31

A lender’s refusal to lend money to potential homeowners attempting to purchase properties located in particular ethnic neighborhoods is known as

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

Answer 31

Redlining

The answer is redlining. Failure to lend or to insure in areas largely populated by a protected group is a violation of the federal Fair Housing Act of 1968. It is redlining

Question 32

The federal Fair Housing Act would permit

A. a hotel renting rooms only to celebrities.
B. the owner of a 20-unit residential apartmentbuilding renting to men only.
C. an apartment next to a Catholic collegerefusing to furnish housing for a Jewish man.
D. an owner refusing to rent the other side ofthe duplex in which she lives to a family withchildren

Answer 32

An owner refusing to rent the other side of the duplex in which she lives to a family with children.

The answer is an owner refusing to rent the otherside of the duplex in which she lives to a familywithchildren. There is an exemption from the fairhousing law for an owner-occupied dwelling of nomore than four units.

Question 33

It is illegal for a lending institution to refuse to make a residential real estate loan in a particular area based on

A. the ethnicity of the residents of the area.
B. the applicant’s questionable economic situation.
C. the applicant not being of legal age.
D. the deteriorated condition of the premises

Answer 33

the ethnicity of the residents of the area.

The answer is the ethnicity of the residents of the area. Redlining refers to literally drawing a line around a particular area and refusing to make loans in that area because of the ethnicity of the residents, rather than looking at the economic qualifications of the applicant.

Question 34

Which agency, upon receiving a complaint regarding a Fair Housing Act violation, investigates?

A. HUD
B. HOPA
C. DOJ
D. ADA

Answer 34

HUD

The answer is HUD. The federal Fair Housing Act is administered by the Office of Fair Housing and Equal Opportunity under the direction of the secretary of HUD. Upon receiving a complaint, HUD initiates an investigation.

Question 35

Housing that qualifies for exemption from familial status provisions

A. includes housing intended for persons 50 or older.
B. includes a restriction that 80% of the units be occupied by persons 55 or older.
C. is not permitted under the federal Fair Housing Act.
D. is permitted for owner-occupied buildings with four or more units.

Answer 35

Includes a restriction that 80% of the units be occupied by persons 55 or older.

The answer is includes a restriction that 80% of the units be occupied by persons aged 55 or older. The Fair Housing Act allows for two exemptions to familial status protection in housing for older persons. One permissible exemption is for housing in which 80% of the units are occupied by persons 55 years of age or older.

Question 36

Which statement describes the Supreme Court’s decision in the case of Jones v. Alfred H. Mayer Company?

A. Racial discrimination is prohibited by any party in the sale or rental of real estate.
B. Sales by individual residential homeowners are exempted, provided the owners do not use real estate professionals.
C. Laws against discrimination apply only to federally related transactions.
D. Persons with disabilities are a protected class.

Answer 36

Racial discrimination is prohibited by any party in the sale or rental of real estate.

The answer is racial discrimination is prohibited by any party in the sale or rental of real estate. The Jones v. Mayer decision held that the Civil Rights Act of 1866, banning all limitation on property rights on the basis of race, is the law of the land. Racial discrimination by anyone in the sale or rental of any kind of property violates this law.

Question 37

After a real estate professional takes a sale listing of a residence, the owners specify that they will not sell the home to any Chinese family. The real estate professional should do which of the following?

A. Advertise the property exclusively in newspapers marketed to persons of Chinese heritage.
B. Explain to the owners that the instruction violates federal law and that the real estate professional cannot comply with it.
C. Abide by the owners’ directions despite the fact that they conflict with the fair housing laws.
D. Require that the owners sign a separate legal document stating the additional instruction as an add-on to the listing agreement.

Answer 37

explain to the owners that instruction violates federal law and that the real estate professional cannot comply with it.

The answer is explain to the owners that the instruction violates federal law and that the real estate professional cannot comply with it. The fiduciary duty of obedience requires that the broker obey all LAWFUL instructions. This is not a lawful instruction as it requires a violation of the Fair Housing Act. If the owners are adamant, to avoid breaking the law, the real estate professional must terminate the representation.

Question 38

The resolution of a complaint to HUD that includesobtaining assurance that the person againstwhom the complaint was filed (the respondent)will remedy any violation is called

A. conciliation.
B. arbitration.
C. settlement.
D. prosecution.

Answer 38

Conciliation

The answer is conciliation. The respondent alsoagrees to eliminate or prevent discriminatorypractices in the future.

Question 39

A single man with two small children has been told by a real estate professional that homes for sale in a condominium complex are available only to married couples with no children. Which statement is TRUE?

A. Because a single-parent family can be disruptive if the parent provides little supervision of the children, the condominium is permitted to discriminate against the family under the principle of rational basis.
B. Condominium complexes are exempt from the fair housing laws and can therefore restrict children.
C. The man may file a complaint alleging discrimination on the basis of familial status.
D. Restrictive covenants in a condominium take precedence over the fair housing laws.

Answer 39

The man may file a complaint alleging discrimination on the bases of familial status.

The answer is the man may file a complaint alleging discrimination on the basis of familial status. The salesperson and, by implication, the broker and the property owners/principals have violated the prohibition against familial-status discrimination. Anyone in charge of one or more children under age 18 who is denied access because of the children is the victim of discrimination based on familial status

Question 40

The following ad appeared in the newspaper: “For sale: 4 BR brick home; Redwood School District; excellent Elm Street location; short walk to St. John’s Church; and right on the bus line. Move-in condition; priced to sell.” Which statement is TRUE?

A. The ad describes the property for sale and is very appropriate.
B. The fair housing laws do not apply to newspaper advertising.
C. The ad should state that the property is available to families with children.
D. The ad should not mention St. John’s Church.

Answer 40

The ad should not mention St.John’s Church

The answer is the ad should not mention St. John’s Church. Reference to a nearby church implies religious preference. This violates HUD advertising regulations designed to enforce the Federal Fair Housing Act

Question 41

A suit may be filed in federal court by a person aggrieved by an alleged act of discrimination under the Fair Housing Act

A. within two years of the discriminatory act.
B. no later than one year after the discriminatory act.
C. with the approval of the state or county nondiscrimination officer.
D. if the Federal Housing Administration refuses to pursue the case.

Answer 41

Within two years of the discriminatory act.

The answer is within two years of the discriminatory act. A civil suit alleging an act of discrimination under the Fair Housing Act may be filed in federal court within two years of the discriminatory act. A complaint may be filed with HUD within one year of the alleged discriminatory act.

Question 42

The federal Fair Housing Act prohibits discriminationon the basis of

A. education.
B. income.
C. marital status.
D. national origin.

Answer 42

National Origin

The answer is national origin. Marital status,education, and income are not protected classesunder the federal Fair Housing Act.

Question 43

Which of the following is legal?

A. Charging a family with children a higher security deposit than those with no children
B. Requiring a person with a disability to establish an escrow account for the costs to restore a property after it has been modified
C. Picturing only white people in a brochure as the “happy residents” in a housing development
D. Refusing to sell a house to a person who has a history of mental illness

Answer 43

Requiring a persona with a disability to establish an escrow account for the costs to restore a property after it has been modified.

The answer is requiring a person with a disability to establish an escrow account for the costs to restore a property after it has been modified. A landlord may negotiate, as part of a restoration agreement, a provision requiring the tenant to pay an amount not exceeding the cost of restoration into an interest bearing escrow account. The interest in the account accrues to the benefit of the tenant.

Question 44

The landlord’s lease prohibits tenants from altering the property in any way. A young woman who uses a wheelchair cannot maneuver over the doorstep into her apartment by herself. In addition, she cannot access the bathroom facilities in her wheelchair. Which of the following is TRUE?

A. The landlord is responsible for making all apartments accessible to people with disabilities.
B. The tenant cannot remedy these conditions because of the terms of the lease.
C. The landlord should not have rented this apartment to the tenant.
D. The tenant is entitled to make the necessary alterations.

Answer 44

The tenant is entitled to make the necessary alterations.

The answer is the tenant is entitled to make the necessary alterations. People with disabilities must be permitted to make reasonable modifications to the premises at their own expense.

Question 45

The provisions of the federal Fair Housing Act apply

A. in all states.
B. in those states that have ratified the act, but not in other states.
C. only in those states that do not have substantially equivalent laws.
D. only in those states that do not have specific state fair housing laws.

Answer 45

in all states.

The answer is in all states. The federal Fair Housing Act applies to all states, and many states and municipalities have their own fair housing laws.