Ch 4- real estate questions with
answers.
The real estate industry has developed a code of professional standards and ethics as a guideline in
serving the real estate needs of consumers. This professional code has emerged from three primary
sources: ANS ---Federal and state legislation
State real estate licensing regulation
Industry self-regulation through trade associations and institutes
--Federal legislation focuses primarily on anti-discrimination laws and fair trade practices. State laws and
licensing regulations focus on agency and disclosure requirements
Fair Housing Laws ANS -The aim of these fair housing laws, or equal opportunity housing laws, is to give
all people in the country an equal opportunity to live wherever they wish, provided they can afford to do
so, without impediments of discrimination in the purchase, sale, rental, or financing of property
Civil Rights Act of 1866 ANS -The original fair housing statute, the Civil Rights Act of 1866, prohibits
discrimination in housing based on race. The prohibition relates to selling, renting, inheriting, and
conveying real estate.
Executive Order 11063 ANS -While the Civil Rights Act of 1866 prohibited discrimination, it was only
marginally enforced. In 1962, the President issued Executive Order 11063 to prevent discrimination in
residential properties financed by FHA and VA loans. The order facilitated enforcement of fair housing
where federal funding was involved.
Civil Rights Act of 1968 Title VIII (Fair Housing Act). ANS -Title VIII of the Civil Rights Act of 1968, known
today as the Fair Housing Act, prohibits discrimination in housing based on race, color, religion, or
national origin. The Office of Fair Housing and Equal Opportunity (OFHEO) administers and enforces Title
VIII under the supervision of the Department of Housing and Urban Development (HUD).
New Fair Housing Regulation: "Equal Access to Housing in HUD Programs - Regardless of Sexual
Orientation or Gender Identity." ANS -"Equal Access to Housing in HUD Programs - Regardless of Sexual
Orientation or Gender Identity." This regulation, effective March 5, 2012, applies to all HUD programs to
, ensure equal access to housing for all Americans regardless of sexual orientation or gender identity. The
regulations add lesbian, gay, bisexual, and transgender (LGBT) individuals to the protected classes. The
rule:
-Requires owners and operators of HUD-assisted housing, or housing whose financing is insured by HUD,
to make housing available without regard to the sexual orientation or gender identity of an applicant
for, or occupant of, the dwelling, whether renter- or owner-occupied.
-Prohibits lenders from using sexual orientation or gender identity as a basis to determine a borrower's
eligibility for FHA-insured mortgage financing.
-Clarifies that all otherwise eligible families, regardless of marital status, sexual orientation, or gender
identity, have the opportunity to participate in HUD programs. It clarifies that families, otherwise eligible
for HUD programs, may not be excluded because one or more members of the family may be a LGBT
individual, have a LGBT relationship, or be perceived to be such an individual or in such relationship.
-Prohibits owners and operators of HUD-assisted housing, or housing whose financing is insured by HUD,
from inquiring about the sexual orientation or gender identity of an applicant for, or occupant of, the
dwelling, whether renter- or owner-occupied. These include the Federal Housing Administration (FHA)
mortgage insurance programs, community development programs, and public and assisted housing
programs
Discriminatory misrepresentation ANS -An agent may not conceal available properties, represent that
they are not for sale or rent, or change the sale terms for the purpose of discriminating.
For example, an agent may not inform a minority buyer that the seller has recently decided not to carry
back second mortgage financing when in fact the owner has made no such decision.
Discriminatory advertising ANS -An agent may not advertise residential properties in such a way as to
restrict their availability to any prospective buyer or tenant.
Providing unequal services ANS -An agent may not alter the nature or quality of brokerage services to
any party based on race, color, sex, national origin, or religion.
For example, if it is customary for an agent to show a customer the latest MLS publication, the agent
may not refuse to show it to any party. Similarly, if it is customary to show qualified buyers prospective
properties immediately, an agent may not alter that practice for purposes of discrimination.
Steering. ANS -Steering is the practice of directly or indirectly channeling customers toward or away
from homes and neighborhoods. Broadly interpreted, steering occurs if an agent describes an area in a
subjective way for the purpose of encouraging or discouraging a buyer about the suitability of the area.
answers.
The real estate industry has developed a code of professional standards and ethics as a guideline in
serving the real estate needs of consumers. This professional code has emerged from three primary
sources: ANS ---Federal and state legislation
State real estate licensing regulation
Industry self-regulation through trade associations and institutes
--Federal legislation focuses primarily on anti-discrimination laws and fair trade practices. State laws and
licensing regulations focus on agency and disclosure requirements
Fair Housing Laws ANS -The aim of these fair housing laws, or equal opportunity housing laws, is to give
all people in the country an equal opportunity to live wherever they wish, provided they can afford to do
so, without impediments of discrimination in the purchase, sale, rental, or financing of property
Civil Rights Act of 1866 ANS -The original fair housing statute, the Civil Rights Act of 1866, prohibits
discrimination in housing based on race. The prohibition relates to selling, renting, inheriting, and
conveying real estate.
Executive Order 11063 ANS -While the Civil Rights Act of 1866 prohibited discrimination, it was only
marginally enforced. In 1962, the President issued Executive Order 11063 to prevent discrimination in
residential properties financed by FHA and VA loans. The order facilitated enforcement of fair housing
where federal funding was involved.
Civil Rights Act of 1968 Title VIII (Fair Housing Act). ANS -Title VIII of the Civil Rights Act of 1968, known
today as the Fair Housing Act, prohibits discrimination in housing based on race, color, religion, or
national origin. The Office of Fair Housing and Equal Opportunity (OFHEO) administers and enforces Title
VIII under the supervision of the Department of Housing and Urban Development (HUD).
New Fair Housing Regulation: "Equal Access to Housing in HUD Programs - Regardless of Sexual
Orientation or Gender Identity." ANS -"Equal Access to Housing in HUD Programs - Regardless of Sexual
Orientation or Gender Identity." This regulation, effective March 5, 2012, applies to all HUD programs to
, ensure equal access to housing for all Americans regardless of sexual orientation or gender identity. The
regulations add lesbian, gay, bisexual, and transgender (LGBT) individuals to the protected classes. The
rule:
-Requires owners and operators of HUD-assisted housing, or housing whose financing is insured by HUD,
to make housing available without regard to the sexual orientation or gender identity of an applicant
for, or occupant of, the dwelling, whether renter- or owner-occupied.
-Prohibits lenders from using sexual orientation or gender identity as a basis to determine a borrower's
eligibility for FHA-insured mortgage financing.
-Clarifies that all otherwise eligible families, regardless of marital status, sexual orientation, or gender
identity, have the opportunity to participate in HUD programs. It clarifies that families, otherwise eligible
for HUD programs, may not be excluded because one or more members of the family may be a LGBT
individual, have a LGBT relationship, or be perceived to be such an individual or in such relationship.
-Prohibits owners and operators of HUD-assisted housing, or housing whose financing is insured by HUD,
from inquiring about the sexual orientation or gender identity of an applicant for, or occupant of, the
dwelling, whether renter- or owner-occupied. These include the Federal Housing Administration (FHA)
mortgage insurance programs, community development programs, and public and assisted housing
programs
Discriminatory misrepresentation ANS -An agent may not conceal available properties, represent that
they are not for sale or rent, or change the sale terms for the purpose of discriminating.
For example, an agent may not inform a minority buyer that the seller has recently decided not to carry
back second mortgage financing when in fact the owner has made no such decision.
Discriminatory advertising ANS -An agent may not advertise residential properties in such a way as to
restrict their availability to any prospective buyer or tenant.
Providing unequal services ANS -An agent may not alter the nature or quality of brokerage services to
any party based on race, color, sex, national origin, or religion.
For example, if it is customary for an agent to show a customer the latest MLS publication, the agent
may not refuse to show it to any party. Similarly, if it is customary to show qualified buyers prospective
properties immediately, an agent may not alter that practice for purposes of discrimination.
Steering. ANS -Steering is the practice of directly or indirectly channeling customers toward or away
from homes and neighborhoods. Broadly interpreted, steering occurs if an agent describes an area in a
subjective way for the purpose of encouraging or discouraging a buyer about the suitability of the area.
