Unit 7 Federal and State Laws Pertaining To Real Estate

Question 1

Be aware of the requirements regarding the Equal Housing Opportunity Poster.

Answer 1

The 1988 amendment also created the equal housing opportunity poster. The poster features the equal housing logo and a statement pledging adherence to the Fair Housing Act. The poster is available without charge from the Department of Housing and Urban Development. (HUD). The poster must be displayed at real estate offices and other businesses involved in the housing industry. No poster considered evidence of discrimination according to HUD.

Question 2

Be aware of the exemptions under the Fair Housing Act.

Answer 2

• Religious organizations

* Private Clubs

Question 3

Understand Redlining

Answer 3

Deny loans or insurance coverage by a lender or insurer that present different terms or conditions for homes in certain neighborhoods.

Question 4

Understand the provisions of ILSA

Answer 4

The Interstate Land Sales Full Disclosure Act (ILSA) is intended to prevent fraudulent marketing schemes when land is sold being seen by purchasers.

• ILSA requires disclosure of full and accurate information regarding property to prospective buyers before they decide to buy.
• *Developers of 25 or more lots must provide buyers with a property report prior to signing the sale contract. The property report contains important information about the property.
• ** Purchasers who timely receive the property report may cancel the contract until the MIDNIGHT of the SEVENTH DAY following signing the contract.
• ** Purchasers who were not given the property report before signing the contract may bring action to revoke the contract anytime within TWO years from the date of signing.
• ** Developers who market subdivisions of fewer than 25 lots are exempt from ILSA.

Question 5

Know how security deposits and advance rents are held by a landlord.

Answer 5

When money is given to a landlord as a security deposit or advance rent, the landlord is obligated to account for such deposits in one of three ways:

1. ) Hold the money in a separate non-interest-bearing Florida bank account for the benefit of the tenant. The landlord may not commingle, hypothecate, which is pledge as security for a debt, or use any such funds until the funds are due the landlord.
2. ) Hold the money in a separate interest-bearing Florida bank account for the benefit of the tenant. In this case, the landlord must pay the tenant at least 75% of the annualized average interest rate payable on the account or 5% per year, simple interest, whiever the landlord elects. The landlord must not commingle, hypothecate, or use any such funds until the actually due the landlord.
3. ) Post a surety bond with the clerk of the circuit court in the county in which the rental property is located in the total amount of the security deposits and advance rents or $50,000, whichever is less. The land lord must pay the tenant interest on the security deposit or advance rent held on behalf of the tenant at the rate of 5% per year simple interest. Landlords who choose this method are not obligated to place the funds (deposits) into a separate account.