Unit 4 Exam

Question 1

Match:

Authorized federal injunctions to protect the voting rights of African Americans

Upheld Civil Rights Act of 1866

Ended racial discrimination in the U.S. armed forces

A)
President Dwight D. Eisenhower

B)
Jones v. Mayer

C)
President Harry S. Truman

Answer 1

Authorized federal injunctions to protect the voting rights of African Americans = A

Upheld Civil Rights Act of 1866 = B

Ended racial discrimination in the U.S. armed forces = C

Question 2

The U.S. Supreme Court’s 1896 decision in Plessy v. Ferguson upheld the separate but equal doctrine of racial segregation.

Answer 2

T

Question 3

The 1954 Brown v. Board of Education decision prohibits specific discriminatory practices throughout the real estate industry.

Answer 3

F

Question 4

Match:

Disability

Familial status

Race

Housing

Noneconomic damages

A)
Dwelling that includes any building or part of a building designed for occupancy as a residence by one or more families

B)
One or more individuals under age 18 living with a parent or guardian

C)
A physical or mental impairment that substantially limits one or more of a person’s major life activities

D)
Humiliation, embarrassment, inconvenience, and mental anguish

E)
Physical traits shared by a group of people with a common national origin

Answer 4

Disability = C

Familial status = B

Race = E

Housing = A

Noneconomic damages = D

Question 5

As amended, the federal Fair Housing Act provides federal civil rights protections to families with children and people with physical or mental disabilities.

Answer 5

T

Question 6

Although the federal Fair Housing Act exempts individual homeowners and certain groups, the Civil Rights Act of 1966 prohibits all racial discrimination without exception and was upheld by the Supreme Court in Jones v. Alfred H. Mayer Company.

Answer 6

F

Question 7

Match:

Redlining

Blockbusting

Steering

A)
Encouraging someone to sell a home by claiming their property value will go down when a member of a protected class moves next door

B)
Making mortgage loans in specific areas for reasons other than the economic qualifications of the applicants

C)
Channeling homeseekers to particular neighborhoods or discouraging potential buyers from considering some areas

Answer 7

Redlining = B

Blockbusting = A

Steering = C

Question 8

Steering is the act of encouraging people to sell or rent their homes by claiming that the entry of a protected class of people into the neighborhood will have a negative impact on property values.

Answer 8

F

Question 9

Asking rental applicants for citizenship documentation or immigration status papers during the screening process violates the Fair Housing Act.

Answer 9

F

Question 10

Put the steps of the federal fair housing complaint and resolution process in order.

A)
While an investigation is ongoing, HUD can attempt to resolve the dispute informally through conciliation, with the respondent promising to remedy any violation that may have occurred and take steps to eliminate or prevent discriminatory practices in the future.

B)
The aggrieved person has the right to seek relief in an administrative proceeding held before an administrative law judge.

C)
HUD initiates an investigation.

D)
The parties may elect civil action in federal court at any time within two years of the discriminatory act.

E)
A Complaint can be filed with HUD within on year of an alleged act of housing discrimination.

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

Answer 10

E, C, A, F, B, D

Question 11

Complaints brought under the Civil Rights Act of 1866 are taken to the state court of the state in which the violation occurred.

Answer 11

F

Taken directly to the federal courts

Question 12

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

Answer 12

T

Question 13

Violating fair housing laws has implications for real estate professionals, even when an offense was unintentional. Indicate whether each of the actions below is a violation of fair housing law.

A)
A family that is new to the city asks Broker B for help in finding a condominium within two blocks of a house of worship for their faith. Broker B is happy to comply. Broker B has violated fair housing law.

B)
A recent immigrant to this country needs help to find an affordable apartment. Sales associate M assists the client in finding an apartment in a building that has other recent immigrants in residence. Sales associate M has violated fair housing law.

C)
A home owner asks Broker Q to list the house for sale. Broker Q is asked to find someone who is the same nationality as the home owner, and Broker Q explains that the property will be shown to all financially qualified buyers. Broker Q has violated fair housing law.

D)
Broker T is showing homes to a veteran who is confined to a wheelchair. The client has indicated a willingness to view all homes in a certain price range, but Broker T limits the showings to one-story houses, in deference to the client’s disability. Broker T has violated fair housing law.

Answer 13

True = A, B, D

False = C

Question 14

A real estate professional who violates fair housing laws risks losing the real estate license and being subject to civil and criminal penalties unless the offense was unintentional.

Answer 14

F

Pay attention to wording

Question 15

Many states and municipalities have their own fair housing laws.

Answer 15

T

Question 16

Match:

Jones v. Mayer

Housing for Older Persons Act (HOPA)

steering

blockbusting

disability

ADA

HUD

familial status

Civil Rights Act of 1968

A)
The presence of one or more persons who are under the age of 18, living with a parent or adult guardian

B)
Law repealing requirement that housing for those 55 and older have special facilities for seniors

C)
A law that prohibits discrimination in housing based on race, color, religion, and national origin

D)
The agency that administers the federal fair housing laws

E)
Law that requires accessibility to employment, goods, and services for individuals with disabilities

F)
Encouraging home seekers to limit their search to particular neighborhoods based on noneconomic factors such as race or religion

G)
A physical or mental impairment

H)
Encouraging the sale of property by claiming a protected class of people are moving in and will lower property values

I)
A U.S. Supreme Court decision that prohibits all racial discrimination in housing

Answer 16

Jones v. Mayer = I

Housing for Older Persons Act (HOPA) = B

steering = F

blockbusting = H

disability = G

ADA = E

HUD = D

familial status = A

Civil Rights Act of 1968 = C

Question 17

In order to be a protected class, religion

A)
must be an informal form of worship.
B)
includes a formal or informal way of worship.
C)
is the same thing as creed.
D)
must be a formal form of worship.

Answer 17

Explanation
The answer is includes a formal or informal way of worship. Both formal and informal worship is protected under fair housing.

Question 18

A real estate appraiser is

A)
subject to appraisal regulations but not fair housing laws.
B)
not required to comply with fair housing laws, but may do so voluntarily.
C)
not subject to the requirements of fair housing laws because all factors must be considered when estimating property value.
D)
subject to the requirements of fair housing laws.

Answer 18

Explanation
The answer is subject to the requirements of fair housing laws. The appraiser may consider factors that affect value, but not any factor based on identification of an individual or individuals protected by fair housing laws.

Question 19

prospective homebuyer who is African-American asks about the availability of a home in a predominantly white residential neighborhood for which the prospective buyer has been financially qualified. What should the broker say to this prospect?

A)
“You wouldn’t want to live in that area because the neighbors aren’t very friendly.”
B)
“I’d be happy to show you homes in other areas where newcomers are welcome.”
C)
“I’ll be pleased to show you houses in that area.”
D)
“The residents there don’t want the community to become too diverse.”

Answer 19

Explanation
The answer is “I’ll be pleased to show you houses in that area.” The broker must not channel homeseekers toward or away from particular neighborhoods based on race, which would be the illegal practice of steering.

Question 20

Establishing relationships with community and fair housing groups

A)
while admirable is not a profitable activity for the real estate professional.
B)
has been difficult for the real estate professional to achieve.
C)
to discuss common concerns and find solutions to problems is a worthwhile activity for the real estate professional.
D)
to discuss new opportunities for business is a worthwhile activity for the real estate professional.

Answer 20

Explanation
The answer is to discuss common concerns and find solutions to problems is a worthwhile activity for the real estate professional. Establishing relationships with community and fair housing groups to discuss common concerns and find solutions to problems can provide a real estate professional with an important way to both assess community needs and help fulfill those needs.

Question 21

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

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

Answer 21

Explanation
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 22

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

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

Answer 22

Explanation
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 23

Why is the Civil Rights Act of 1866 unique?

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

Answer 23

Explanation
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 of 1866 allows no exceptions that would permit discrimination on the basis of race.

Question 24

The 1896 U.S. Supreme Court case that upheld racial segregation in public facilities and the 1954 case that overturned it are

A)
Jones v. Mayer and Wells v. State Manufactured Homes.
B)
Plessy v. Ferguson and Jones v. Mayer.
C)
Plessy v. Ferguson and Brown v. Board of Education.
D)
Marbury v. Madison and Jones v. Mayer.

Answer 24

Explanation
The answer is Plessy v. Ferguson and Brown v. Board of Education. Plessy established the “separate but equal” doctrine, but the Brown decision overturned it by holding that separate schools for black and white students are inherently unconstitutional.

Question 25

The agency responsible for the enforcement of the Fair Housing Act is

A)
the Federal Housing Administration.
B)
the Department of Housing and Urban Development.
C)
the Department of Veterans Affairs.
D)
the Department of Justice.

Answer 25

Explanation
The answer is the Department of Housing and Urban Development. The Fair Housing Act is administered by the Department of Housing and Urban Development (HUD).

Question 26

State licensing rules may provide fines for a violation of fair housing laws

A)
as well as the suspension or revocation of an offender’s license.
B)
but usually do not provide for suspension or revocation of an offender’s license.
C)
but usually do not subject the offender to criminal prosecution.
D)
as well as the suspension of an offender’s license.

Answer 26

Explanation
The answer is as well as the suspension or revocation of an offender’s license. State licensing rules may provide for fines for a violation of fair housing laws as well as the suspension or revocation of an offender’s license. Such penalties are apart from, and in addition to, any penalty imposed for violation of federal, state, or local fair housing laws.

Question 27

The Civil Rights Act of 1866 prohibits any limitation of property rights based on

A)
religion.
B)
handicap.
C)
sex.
D)
race.

Answer 27

Explanation
The answer is race. The federal government’s effort to guarantee equal housing opportunities to all U.S. citizens began with the passage of the Civil Rights Act of 1866. This law prohibits discrimination based on race.

Question 28

The Supreme Court decision that ended the separate but equal doctrine of legalized racial segregation was

A)
Plessy v. Ferguson.
B)
Brown v. Board of Education.
C)
the Civil Rights Act of 1866.
D)
the Civil Rights Act of 1968.

Answer 28

Explanation
The answer is Brown v. Board of Education. The separate but equal doctrine of racial segregation was ended by the U.S. Supreme Court’s 1954 decision in Brown v. Board of Education.

Question 29

In the rental process, a landlord who puts members of a protected class on a certain floor or building may be found guilty of

A)
blockbusting.
B)
redlining.
C)
steering.
D)
nothing because the practice is not illegal.

Answer 29

Explanation
The answer is steering. In the rental process, a landlord who puts members of a protected class on a certain floor or building may be found guilty of steering.

Question 30

Senior housing may be restricted to occupancy by older persons and may

A)
limit occupancy on the basis of sex.
B)
also restrict occupancy on the basis of race, color, or national origin.
C)
refuse occupancy to senior citizens with a disability.
D)
provide temporary occupancy by younger visitors.

Answer 30

Explanation
The answer is provide temporary occupancy by younger visitors. Senior housing is exempt from familial status protection, although temporary occupancy by younger visitors is typically allowed. Senior housing remains subject to all other provisions of the Fair Housing Act unless another exemption applies.

Question 31

A prospective tenant requests necessary and reasonable modifications to an apartment to accommodate a wheelchair. The modifications

A)
must be allowed to be made by the tenant at the tenant’s expense.
B)
must be made by the landlord at the landlord’s expense.
C)
can be made by the tenant and reimbursed by the landlord.
D)
cannot be made unless approved by the landlord.

Answer 31

Explanation
The answer is must be allowed to be made by the tenant at the tenant’s expense. As long as the modifications are necessary and reasonable, tenants with a disability are permitted to make modifications at their own expense. If the modifications make the property undesirable to the general population, the landlord may require that the property be restored to its previous condition when the lease period ends.

Question 32

Failure of the real estate professional to comply with fair housing laws is

A)
a criminal violation but not grounds for disciplinary action against the real estate professional.
B)
only a violation of real estate licensing law in most states.
C)
both a civil and a criminal violation and grounds for disciplinary action.
D)
a civil violation, which must be pursued in court by the victim.

Answer 32

Explanation
The answer is both a civil and a criminal violation and grounds for disciplinary action. Failure of the real estate professional to comply with fair housing laws is both a civil and a criminal violation and constitutes grounds for disciplinary action against a real estate professional.

Question 33

Nashville, Tennessee, is going to host a Baptist revival. Nearly 40,000 Baptists will attend and need a place to stay. To allow legal religious discrimination, when the Episcopal church is asked by the Baptist church to offer accommodations in properties it owns, the church says that it only rents its properties to Episcopalians but will consider renting to the Baptists if they all

A)
observe a 10:00 pm curfew.
B)
become Episcopalians.
C)
do not smoke or drink.
D)
leave their children at home.

Answer 33

Explanation
The answer is become Episcopalians. Religious organizations may discriminate in the use of properties if membership in the underlying organization (in this case, the Episcopal church) does not illegally discriminate in their membership requirements.

Question 34

A violation of fair housing laws

A)
places the livelihood of the real estate professional in jeopardy as well as making the real estate professional subject to financial penalties.
B)
carries no significant consequences for a real estate professional, but does carry consequences for the property owner or landlord.
C)
makes the real estate professional subject only to financial penalties.
D)
carries no financial penalties for a real estate sales associate.

Answer 34

Explanation
The answer is places the livelihood of the real estate professional in jeopardy as well as making the real estate professional subject to financial penalties. There may also be consequences for the property owner or landlord.

Question 35

The sale or rental of a single-family home is exempt from the Fair Housing Act if, among other requirements,

A)
the seller does not sell more than one home every year.
B)
a real estate professional is involved in the transaction.
C)
the home is owned by an individual who does not own more than four such homes at a time.
D)
discriminatory advertising is not used.

Answer 35

Explanation
The answer is discriminatory advertising is not used. The home must be owned by an individual who does not own more than three such homes at a time and who does not sell more than one of them every two years, and a real estate professional must not be involved in the transaction.

Question 36

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 36

Explanation
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 37

The civil rights laws that affect the real estate industry help ensure that

A)
everyone has the opportunity to live wherever they can afford to live.
B)
communities are able to attract developers to build and offer homes for sale.
C)
home sellers report on the reasons for rejecting any offers.
D)
community revenues are enhanced through greater home sales.

Answer 37

Explanation
The answer is everyone has the opportunity to live wherever they can afford to live. The civil rights laws that affect the real estate industry help ensure that everyone has the opportunity to live wherever they can afford to live.

Question 38

A broker showing properties to a couple who has recently emigrated to the U.S. from Cuba intentionally selects properties exclusively in neighborhoods that she knows have some residents who are also immigrants from Cuba. This action likely constitutes

A)
perfectly legal activity.
B)
steering.
C)
panic selling.
D)
blockbusting.

Answer 38

Explanation
The answer is steering. Steering occurs when a broker selects property to show based on a protected class characteristic. Blockbusting and panic selling are also violations of fair housing laws but do not match the definition of steering.