what are three laws prohibiting discrimination in the national housing market?
1. civil rights act of 1866
2. executive order 11063
3. civil right act of 1968 (Fair Housing Act) "Equal Access to Housing in HUD Programs - Regardless of Sexual Orientation or Gender Identity.
what are the four forms of illegal discrimination?
1. Discriminatory misrepresentation and advertising
2. Providing unequal services
3. Steering, blockbusting, redlining
4. Restricting MLS participation.
what are the three exemptions to the fair housing act?
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1. A privately owned single-family home where no broker is used and no discriminatory advertising is used;
2. Rental of an apartment where the owner is also an occupant, provided the advertising is not discriminatory;
3. Facilities owned by private clubs
an official complaint is given to what committee? what happens after the complaint is given to the committee?
The Grievance Committee
The Grievance Committee makes a decision as to whether the complaint should be dismissed or forwarded for a Professional Standards Hearing
what is a professional standards hearing?
after an official complaint is filed, the grievance committee can decide it's necessary for a professional standards hearing to occur. the hearing is conducted by a panel of realtors who are members of the organization.
an arbitration complaint is generally over an issue of ________________.
MONEY
equal opportunity in housing:
discrimination based on sex and discrimination against handicapped persons and families with children is prohibited, except: (four exceptions)
1. In government-designated retirement housing; in a retirement community if all residents are 62 years of age or older
2. In a retirement community if 80% of the dwellings have one person who is 55 years of age or older;
3. In residential dwellings of fo
list three ways in which an agent can discriminate against the client
1. Refusing a full-price offer from a party
2. Removing the property from the market to sidestep a potential purchase by a party
3. Accepting an offer from one party that is lower than one from another party.
Executive Order 11063
In 1962 the President issued Executive Order 11063 to further enforce the Civil Rights Act of 1866 prohibiting discrimination. This order banned segregation in federally funded housing.
Civil Rights Act of 1866
The original fair housing statute: prohibits discrimination in housing based on race. The prohibition relates to selling, renting, inheriting, and conveying real estate.
Civil Rights Act of 1968 Title VIII (Fair Housing Act)
known as the Fair Housing Act
prohibits discrimination in housing based on race, color, religion, or national origin.
who administers/enforces Title VIII? under the supervision of _____________?
The Office of Fair Housing and Equal Opportunity (OFHEO) administers/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.
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.
th
illegal discrimination:
Discriminatory misrepresentation.
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 carr
illegal discrimination:
Discriminatory advertising
An agent may not advertise residential properties in such a way as to restrict their availability to any prospective buyer or tenant.
illegal discrimination:
Providing unequal services
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 t
illegal discrimination:
Steering
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 bu
illegal discrimination:
Blockbusting
Blockbusting is the practice of inducing owners in an area to sell or rent to avoid an impending change in the ethnic or social makeup of the neighborhood that will cause values to go down.
For example, Agent Smith tells neighborhood owners that several m
illegal discrimination:
Restricting MLS participation
It is discriminatory to restrict participation in any multiple listing service based on one's race, religion, national origin, color, or sex.
illegal discrimination:
Redlining
the discriminatory practice of fencing off areas where banks would avoid investments based on community demographics
the areas most frequently discriminated against were black inner city neighborhoods
ex. an investigative reporter showed that banks would
Jones v. Mayer
In 1968, the Supreme Court ruled in Jones v. Mayer that all discrimination in selling or renting residential property based on race is prohibited under the provisions of the Civil Rights Act of 1866. Thus, while the Federal Fair Housing Act exempts certai
fair housing:
Equal Opportunity in Housing poster
In 1972, HUD requires that brokers display a standard HUD poster to signify the broker's compliance with fair housing laws. failing to display poster could be seen as discrimination.
fair housing:
Discrimination by the client
Fair housing laws apply to home sellers as well as to agents
If an agent goes along with a client's discriminatory act, the agent is equally liable for violation of fair housing laws
Examples of potential client discrimination are:
1. Refusing a full-pric
who do you go to if you feel you have been discriminated against under federal fair housing laws?
the Office of Fair Housing and Equal Opportunity (OFHEO) within HUD
or they may file suit in a federal or state court.
Complaints alleging fair housing violations must be filed with the Office of Fair Housing and Equal Opportunity within ___________________ of the violation
ONE YEAR
violations and enforcement of fair housing:
filing suit
In addition to or instead of filing a complaint with HUD, a party may file suit in state or federal court within two years of the alleged violation.
violations and enforcement of fair housing:
filing suit:
what happens if discrimination is confirmed in court?
the wronged party can seek the following:
Injunctive relief (restraining order);
Actual damages;
Punitive damages not to exceed $1,000.
fair financing laws
anti-discrimination and consumer protection laws in the mortgage financing field to promote equal opportunity in housing.
fair financing laws:
Equal Credit Opportunity Act (ECOA)
Opportunity Act requires lenders to be nondiscriminatory in determining who qualifies for a loan
lenders must tell prospective borrowers who are being denied credit the reasons for the denial.
fair financing laws:
Home Mortgage Disclosure Act
aims to prevent lenders in charge of federally guaranteed or insured loans from redlining geographical regions.
fair financing laws:
Home Mortgage Disclosure Act:
how is the prevention of redlining enforced by this act?
by requiring lenders to report to authorities where they have placed their loans to prove they have been impartial in terms of who they lend loans to
fiduciary
involving trust, especially with regard to the relationship between a trustee and a beneficiary.
"the company has a fiduciary duty to shareholders
working with customers:
disclosure:
true or false, an agent has to disclose property defects that would require technical expertise to discover.
FALSE. an agent is only required to disclose property defects that are REASONABLY APPARENT.
working with customers:
disclosure:
true or false, an agent has to disclose any profits made on a client's money.
TRUE. an agent is required to disclose any profits made on a client's money.
working with customers:
disclosure:
true or false, an agent has to disclose any interest on the agents listed property to the party they are representing.
TRUE.
trade association
is a voluntary nonprofit organization of independent and competing business units engaged in the same industry or trade, and formed to resolve the industry's problems, promote its progress, and enhance its service.
The CALIFORNIA ASSOCIATION OF REALTORS
is an organization composed of the members of local associations/boards of REALTORS� throughout the State.
A REALTOR
is a person engaged in the real estate business who is a local and state association/board member and therefore a member of the NATIONAL ASSOCIATION OF REALTORS
what is the MLS (multiple listing service)?
a database where real estate agents list the homes they have for sale
who can have access to the MLS?
1. Qualified real estate brokers
2. certified or licensed appraisers
3. A real estate salesperson may obtain access through his/her broker.
why is the MLS important?
1. offer a commission to buyer agents (nearly 90% of buyers use an agent)
-agents will only show homes that are offering a commission on the MLS
2. THE MOST POWERFUL MARKETING TOOL
A REALTIST must be a member of a _________ board as well as a member of the _____________organization.
A REALTIST must be a member of a LOCAL BOARD as well as a member of the NATIONAL ORGANIZATION.
what are REALTISTS working towards?
nationally and locally, are working for democracy in housing and better housing for the communities they serve.
what is the difference between a REALTOR and any other real estate licensee?
a REALTOR is a member of the National Association of REALTORS
and a REALTOR is pledged to follow the very strict Code of Ethics and Standards of Practice subscribed to by all members of the Association.
what is the second-most-often-cited ethics complaint against licensees?
cited meaning not necessarily in violation of
Article 2: Disclosure of pertinent facts
true or false:
in most cases there is there is a requirement for disclosure of NON-MATERIAL FACTS, such as the fact that there has been a death (natural causes, murder, or suicide) on the property, or that some other felonious action has occurred.
FALSE: there is NO requirement for disclosure of NON-MATERIAL FACTS
Regulatory Ethics Standards: article 1
Protecting the best interests of the client
two-thirds of all complaints filed throughout the country cite Article 1
Regulatory Ethics Standards: article 2
Disclosure of pertinent facts
one third of cases contain a complaint on this article
Regulatory Ethics Standards: article 9
having everything clearly in writing
one of those most often found to have actually been in violation.
Regulatory Ethics Standards: article 12
Truth in Advertising: Article 12 states that REALTORS� must always present a true picture in advertising to the public.
Regulatory Ethics Standards: article 16
Respecting another agency relationship.
While waiting in the lobby of the Fair Real Estate Company's office, Samir and Rhadika overhear an agent tell clients, "You wouldn't be happy in THAT neighborhood. It's very "colorful," if you know what I mean." Which ruling by the Supreme Court dealt wit
C. All discrimination and appearances of discrimination in selling or renting residential property based on race and color is prohibited under the provisions of the Civil Rights Act of 1866, Jones v. Mayer.
Martha and Liz have applied for a mortgage. They both have excellent credit and very successful careers and they are perfect on paper. Martha and Liz are partners and are expecting the birth of their first child together. They are denied a loan. What's th
B. Martha and Liz have been denied the full protection of the Equal Credit Opportunity Act (ECOA). The ECOA is a part of the Fair Financing Laws.
John is studying for his California real estate license. He is studying federal law, state law, and local law. Now, he is trying to get a handle on something called "Professional Code." What source has no input on the topic John is currently studying?
A.
C. The Better Business Bureau�
Jane feels she has been discriminated against in her search for a new home. She's a single mother of two who works full time. Where does she go with a complaint?
A. The Office of Fair Housing and Equal Opportunity (OFHEO)
B. Her real estate agent and HUD
A. The Office of Fair Housing and Equal Opportunity (OFHEO)
Jane has filed her complaint of discrimination. She also wants to seek some sort of punitive damages. What are her options, if any?
A. Jane has one year from the date of the violation to bring suit. She may seek actual damages and a court order to allow h
D. Jane may file suit within two years of the violation. She may seek a restraining order, actual damages, and punitive damages of up to $1,000.
John is still studying for his California real estate license. Once again, he is having a difficult time keeping areas straight. Help John with the largest area of the NAR Code of Ethics Standards and Practices.
A. Article 16 - Ethics and Agency Relations
A. Article 16 - Ethics and Agency Relationships
Following each Article of the Code of Ethics there may be one or more standards of practice to provide further explanation. Although Article 16 is very short, it has 20 standards of practice following the ba
The Ritchie family has put their home on the market. The Sampsons make an offer on the Ritchies' home. Suddenly, the Ritchies decide not to sell their home. They explain to Sara, their agent, that the Sampsons "aren't quite right" for the neighborhood. Wh
D. both B and C
John is trying to keep things straight while he studies. He's having a rough time distinguishing federal and state legislation. Help John with the primary focus of federal legislation.
A. Anti-discrimination laws and fair trade practices
B. Agency and dis
A. Anti-discrimination laws and fair trade practices
Both federal and state governments have enacted laws prohibiting discrimination in housing and while state legislation covers anti-discrimination and disclosure requirements, it also covers agency and d
Agent Smith tells the Jacob family the Fernwood neighborhood is beautiful, attractive, and highly desirable. The next day, Agent Smith tells the Miller family that Fernwood is deteriorating, values are falling, and the school district is less than stellar
B. Steering
Jennifer is a single mother looking for a place to live. She sees an ad on Facebook by a private owner which states "No young children because of pool". Would this be a Fair Housing Violation?
A. No. The owner is looking out for the family's safety.
B. No
C. Yes. Private owners cannot advertise against a protected class.
Private owners are not required to comply with Fair Housing other than for Race. However, they cannot advertise against a protected class.
describe the process of what happens when a member of the public or a realtor wants to file a complaint
the person/ realtor needs to contact local board or association�> official complaint given to Grievance Committee�> if Grievance Committee decides complaint needs more resolving�> Professional Standards Hearing conducted by a panel of Realtors
an ARBITRATION complaint is usually over an issue of ________________.
MONEY
where CODE OF ETHICS and the LAW conflict, the _______________ always comes first.
LAW