UNIT 18 EXAM QUESTIONS FAIR HOUSING QUESTIONS WITH CORRECT ANSWERS

The act of directing home seekers toward or away from particular areas, either to maintain or to change the character of the neighborhood, is A) steering. B) redlining. C) permitted under the Fair Housing Act of 1968. D) blockbusting. CORRECT ANSWER 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. Failure of the real estate professional to comply with fair housing laws is A) only a violation of real estate licensing law in most states. B) a criminal violation but not grounds for disciplinary action against the real estate professional. C) a civil violation, which must be pursued in court by the victim. D) both a civil and a criminal violation and grounds for disciplinary action. CORRECT ANSWER 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. Protection from threats or acts of violence against those who assist and encourage open housing rights is found in A) the Fair Housing Act. B) the Civil Rights Act of 1866. C) the Civil Rights Act of 1964. D) the rules of the Federal Communications Commission. CORRECT ANSWER The answer is the Fair Housing Act. Under the Fair Housing Act, such threats, coercion, and intimidation are punishable by criminal action. The fine for a first violation of the federal Fair Housing Act could be as much as A) $37,525. B) $19,987. C) $100,000. D) $65,654. CORRECT ANSWER The answer is $19,987. A fine of not more than $19,987 is possible for a first violation. It is illegal for a lending institution to refuse to make a residential real estate loan in a particular area only because of A) the deteriorated condition of the premises.