Unit 2: Ethics, Fair Housing, Trust Funds and Other Legal Issues Flashcards
Define ethics and explain how to evaluate an act as ethical or unethical. understand federal and state fair housing laws and regulations and how they relate to real estate practice.
Ethics is the (BLANK) standard for life, and the best test for that standard is the (BLANK) rule.
- MORAL
- GOLDEN
Ethics tends to (blank) the law.
PRECEDE
Ethics has nothing to do with legality or illegality. (BLANK) set minimum standards for what a society regards as acceptable behavior.
LAWS
Federal Laws related to real estate
13th Amendent: Abolished slavery, but did not specifically address the rights of former slaves
Civil Rights Act of 1866: Intended to provide equal treatment for former slaves
14th Amendment:Did not limit itself to race. It attempted to offer a comprehensive Civil Rights protection.
More Federal Laws relating to Real Estate
Civil Rights Act of 1870: After the Fourteenth Amendment, some thought the Act of 1866 was no longer valid.Therefore, the Civil Rights Act was passed again to make sure the rights of 1866 would remain valid
Civil Rights Act of 1964 made the following acts illegal;
* Discrimination
* Refusal to show, rent, or sells through false
representation
* Discrimination in access to MLS
Federal Law
1988 Fair Housing Amendments Act
This law extended federal protection against
housing discrimination to include familial
status and handicapped persons
More Federal Laws relating to Real Estate
Civil Rights Act of 1968:
* This act prohibited discrimination in housing
based on national origin, race, religion, and
color
* Sexual orientation was added in 1974
* This act prohibits discrimination by brokers
against clients and customers
* Steering
* Blockbusting
* Redlining
* Retaliatory acts against persons making fair-
housing complaints are prohibited
* Discriminatory advertising is prohibited even
when related to activities exempt from the act
Federal Law
Americans with Disabilities Act (ADA)
Prohibits discrimination that would deny the
equal enjoyment of goods, services, facilities,
and accommodations in any existing place of
public accommodation, based on an
individual’s physical or mental disabilities
California Laws regarding real estate
Unruh Act
prohibits discrimination in all business
establishments. This act applies to real estate
brokers, salespersons, and anyone who
manages apartments.
California laws regarding real estate law
Rumford Fair Housing Act
– Also known as the Fair Employment and
Housing Act
– Prohibits discrimination in supplying housing
accommodations on the basis of sex, color,
race, religion, marital status, ancestry, or
national origin
California Laws regarding real estate (finance/loans)
Holden Act
– Housing Financial Discrimination Act of 1977
– Prohibits financial institutions from engaging in
discriminatory loan activities or practices
Illegal and unethical practices in real estate
Steering is an …
illegal practice in real estate where a real estate agent influences a buyer’s choice of neighborhood based on a protected characteristic:
race, color, religion, gender, disability, familial status, and national origin
illegal and unethical practices in real estate
Blockbusting is an…
illegal real estate practice that involves convincing homeowners to sell their properties at below market value by spreading fear about the neighborhood’s changing demographics
illegal and unethical practice in real estate
Redlining is a…
discriminatory practice in real estate that involves denying financial services to people in certain neighborhoods based on their race or ethnicity.
