Module 3: Hawaii Pre-Licensing Real Estate Class Complete Answers

Module 3: Hawaii Pre-Licensing Real Estate Class Complete Answers 1) Mr. Juarez, a Spanish-American man, went to a real estate agency to rent a home. They placed him with a Spanish-speaking salesperson, who showed Mr. Juarez properties in Spanish-speaking areas only. Mr. Juarez asked about a house he had seen in a Caucasian neighborhood. The salesperson lied in telling Mr. Juarez that the property had already been rented. This is: A) Illegal discrimination based upon the company policy of placing individuals with salespersons of the same ethnic background B) Not illegal, because the property was already rented C) An illegal practice under the Federal Fair Housing Act, because of blockbusting D) An illegal practice under the Federal Fair Housing Act, because of steering ️D) An illegal practice under the Federal Fair Housing Act, because of steering Steering is a violation of the Fair Housing Law. 2) Two brokers know that a house, which sold, is now a commune. The brokers, seeking quick gain, call the owners in the neighborhood to get them to sell, saying, "It's becoming a communal neighborhood and everyone knows hippies can't take care of property." This is: A) A lawful practice B) Unlawful panic-peddling C) Unlawful discrimination D) Unlawful intimidation ️A) A lawful practice Hippies are not a protected class. 3) Mrs. Santos lives in a 4-unit building near a college. She rents 3 units to students, giving first choice to foreign students, since she feels they deserve assistance. She lists the rentals with a brokerage firm. Which of the following statements is true under the federal law? A) It is lawful for the owner to do this, since she lives in one of the units B) College housing does not come under the Federal Fair Housing Act because it is an affirmative act C) The broker is required to give preference to foreign students, since it is the will of the owner D) This is a special rental arrangement for students needing assistance, and as such does not come under the normal provisions of Fair Housing ️A) It is lawful for the owner to do this, since she lives in one of the units Under the federal law, an owner living in one unit and renting 3 or less units on the same property can discriminate on who lives next to the owner. In Hawaii, the owner can discriminate if the owner lives in one unit and rents 1 other unit on the property. 4) A developer is nearing completion of a cluster of vacation homes in a resort area. Its television advertisements use only white actors. No use is made of HUD Fair Housing logo because the developer is apprehensive that sales to black families will adversely affect its target market of white buyers. The developer's sales personnel are instructed to quote higher prices to minority prospects and to claim untruthfully that the property has been sold to avoid minority transactions. Which statement about the developer's policy is correct? A) Ad using only white actors subjects the developer to criminal penalties under the Federal Fair Housing Act B) Preferring white prospects is lawful because the Federal Fair Housing Act does not cover vacation homes C) Failing to use HUD Fair Housing logo will result in the developer's losing FHA loans in connection with the sale of his units D) Quoting different prices to minorit ️D) Quoting different prices to minority prospects violates the FFHA The same price must be quoted to all potential tenants or buyers. Under the Federal Fair Housing Laws, which of the following is exempt? A) Private clubs operating a non-commercial boarding house B) Single-family houses sold through the services of a real estate broker C) Both of the above D) None of the above ️A) Private clubs operating a non-commercial boarding house The federal law allows private clubs to discriminate. The Hawaii law does not allow this practice. 6) Which of the following is an example of "blockbusting" as defined by the Federal Fair Housing Act? A) The purchase of a home by persons of the same religion as those already in the neighborhood B) The attempt for profit, to persuade a person to sell his property by informing him that the minority group members are about to move into his neighborhood C) Both of the above D) None of the above ️B) The attempt for profit, to persuade a person to sell his property by informing him that the minority group members are about to move into his neighborhood 7) A religious institution that restricts its membership to a certain race operates a non-profit program to sell individual retirement homes to its members. According to the Federal Fair Housing Act, the use of which of the following would be prohibited in the transfer of title? A) Title companies B) Escrow agents C) Both of the above D) None of the above ️C) Both of the above If the religious organization does not discriminate in its' membership to that religion, the religious organization can discriminate on who they rent or sell to. 8) In an allegation of discriminatory practices under the Federal Fair Housing Act, the burden of proof is on the: A) Court B) Defendant C) Complainant D) Department of Housing and Urban Development ️C) Complainant If the real estate firm displays a fair housing logo in the office, the burden of proof is on the complainant. If there is no fair housing logo, the burden of proof is on the real estate firm. 9) Which of the following is a permissible practice under the Federal Fair Housing Law?