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What ethical standards guide real estate professionals and what are the three sources for the information incorporated into this guide?
The Code of Ethics and Standards of Practice set forth by NAR has used federal and state laws which focus on anti-discrimination laws and fair trade practices, state real estate licensing regulation dealing with agency issues and disclosures, and self-regulation by real estate associations that set standards for professional conduct.
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Identify two duties to clients set forth in the Code of ethics. (See page 4 for other correct answers.)
- Avoiding exaggeration, misrepresentation and the concealment of pertinent facts
- Informing sellers or purchasers of the licensee's interest in a property
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List two steps a managing broker should take to ensure compliance with fair housing laws. (See pages 7 and 8 for other correct answers.)
Prominently display in all offices the Equal Opportunity Poster that HUD distributes.
Provide ongoing training and education to all affiliated licensees by holding seminars and workshops, watching videos and bringing in guest speakers.
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List the five responsibilities licensees have in complying with fair housing laws.
- Know fair housing laws and responsibilities for compliance
- Act in accordance with the law at all times
- Learn to keep clear and accurate records
- Attend fair housing training periodically
- Know resources to use if misconduct needs to be reported
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What is significant about the Fair Housing Amendments Act of 1988?
It added handicap and familial status to the list of protected classes.
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Describe the exemption that exists for familial status discrimination.
Housing for older persons is exempt if one of the following conditions is exists.
The HUD Secretary has determined that it is specifically designed for and occupied by elderly persons under a Federal, State or local government program.
It is occupied solely by persons who are 62 or older.
It houses at least one person who is 55 or older in at least 80 percent of the occupied units, and adheres to a policy that demonstrates the intent to house persons who are 55 or older.
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Alex Jones owns a duplex and lives in one unit. He refuses to rent the other unit to families with children. What would you say about Alex's actions?
Alex is within the guidelines of the Fair Housing Act since he is the owner of a dwelling that has less than four units, one of which is owner-occupied.
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If a person feels like he or she has been discriminated against, how long does that person have to file a complaint?
- With HUD – within one year of the alleged act
- In state or federal court – within two years of the alleged act
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Why is it important for licensees to understand the Americans with Disabilities Act?
Brokers need to evaluate whether they need to make physical changes to their office space to comply with the law. Licensees should inform their commercial and investor clients of the need to have their leases professionally evaluated and their offices inspected for compliance.
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List three activities that are considered discriminatory in real estate. (See page 23 for other correct answers.)
Refusing to sell, rent or negotiate with any person who is a member of a protected class
Telling persons that a property is not for sale or rent when it is
Denying membership in any multiple listing service (MLS) or any broker's organiza
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What is blockbusting?
Blockbusting is making a profit by inducing owners to sell by telling them that persons of a protected class are moving into the neighborhood which will have detrimental results.
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Fair Housing law first began with the Civil Rights Act of ___which prohibited discrimination in housing based on race. The list of protected classes of the Federal Fair Housing Act are:
Race
Religion
Color
National origin
Sex
Handicap
Familial status
1866
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Any person who believes he or she has been discriminated against may file a complaint with HUD within one (__) year of the alleged act.
In addition to or instead of filing a complaint with HUD, a person may file a suit in a state or federal court within two (__) years of the alleged violation.
The Americans with Disabilities Act mandates that persons with disabilities have equal access to jobs, public accommodations, government services, public transportation and telecommunications.
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– Making a profit by inducing owners to sell by telling them that persons of a protected class are moving into the neighborhood which will have detrimental results.
Blockbusting
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– Channeling homebuyers toward or away from homes in certain neighborhoods in order to preserve or alter the makeup of that neighborhood.
Steering
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– Restricting the number of loans in certain areas of a community because of its racial or ethnic makeup. Compliance with antidiscrimination laws is critical when doing advertising.
Redlining
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– An activity in which a licensee represents that minorities are moving into the area to get homeowners to sell their properties.
Panic selling
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What is NOT a licensee's responsibility when complying with fair housing laws?
Know the fair housing laws
Act in accordance with the law as the licensee deems necessary
Keep accurate records
Periodically attend fair housing seminars
Act in accordance with the law as the licensee deems necessary
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A broker only shows homes in certain neighborhoods based on matching existing residents with similar potential buyers. This broker is guilty of what prohibited activity?
Redlining
Blockbusting
Steering
Misrepresentation
Steering
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Ethics
deals with stated goals.
tends to deal with what is right.
relies on measurable behavior.
represents the stated purpose of a group of people.
tends to deal with what is right.
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What is an exemption from the prohibition against familial status discrimination?
Pregnant women
Children under 18 living with custodial grandparents
A family with more than 6 children
Housing for persons 62 years of age and older
Housing for persons 62 years of age and older
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All real estate offices
should keep a fair housing policy copy on file with their State Board.
should keep a fair housing policy copy on file with HUD.
should have an attorney draft their fair housing policy.
should include a fair housing policy in their policy and procedures manual.
should include a fair housing policy in their policy and procedures manual.
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What should be prominently displayed in every real estate office?
A list of all brokers who are employed there
A copy of Fair Housing laws
The Equal Opportunity Poster
A list of all prohibitions included in Fair Housing laws
The Equal Opportunity Poster
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Which Fair Housing Law added handicap individuals to the list of protected classes?
Jones v. Mayer
Title VIII of the Civil Rights Act of 1968
Americans with Disabilities Act
Fair Housing Amendments Act
Fair Housing Amendments Act
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Panic selling is also known as
blockbusting.
steering.
grouping.
directing.
Blockbusting
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The formal Code of Ethics and Standards of Practice set forth by NAR calls for professionals specifically to observe
Fair Housing laws.
the Americans with Disabilities Act.
the Golden Rule.
advertising regulations.
The golden rule
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Regarding fair housing, licensees
have ethical and legal responsibilities to their clients and customers.
have long-term and short-term responsibilities to their clients.
are exempt from laws passed after 1999.
are required to maintain a Fair Housing Distribution Journal.
have ethical and legal responsibilities to their clients and customers.
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What are the three keys to good ethical practices?
Knowledge, Power, and Direction
Honor, Skills, and Performance
Communication, Follow-up, and Observation
Trustworthiness, Honesty and Competence
Trustworthiness, Honesty and Competence
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What is the strategy called whereby lenders limit the number of loans based on the racial make-up a of a neighborhood?
Redlining
Bluelining
Marking
Blockbusting
Redlining
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What legislation mandates that persons with disabilities have equal access to jobs, public accommodations, government services, public transportation, and telecommunications?
Human Rights Law
Americans with Disabilities Act
Brown v. Board of Education
Title IX
Americans with Disabilities Act
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Which of these is not an exemption to fair housing law?
Senior housing for residents 62 or older
A religious organization providing housing to members only
The sale of a single-family home by an owner who owns five residences
Rental of a unit in an owner-occupied four-family flat
The sale of a single-family home by an owner who owns five residences
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Which of these statements about the Americans with Disabilities Act is FALSE?
A broker might need to change the layout of the office to make the aisles wider for clients in wheelchairs.
A duplex owner might need to remodel the kitchen in the rental unit to accommodate persons with disabilities.
An apartment manager might be required to allow a tenant with a disability to widen a doorway.
A shopping center could have to remodel their public restrooms.
A duplex owner might need to remodel the kitchen in the rental unit to accommodate persons with disabilities.
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What is the motto that puts fair housing into practice?
Fair treatment for all and special treatment for no one.
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What are the four groups of licensees in regard to fair housing laws?
Those who do not know fair housing laws and don't care to learn about them.
Those who do not know fair housing laws but do care.
Those who do know the law but don't care.
Those who do know the law and follow them every day.
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Without quoting word for word, what is the message of the equal housing opportunity statement?
The message is that we are following the law to achieve equal housing opportunities throughout the US and that we support affirmative advertising and marketing where housing will be available to all regardless of race, color, religion, sex, familial state, handicap, or national origin.
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List three of the five rules in dealing with listing agreements. (Other correct answers can be found on page 7.)
Prospective buyers cannot be described in terms that include race, religion, color, national origin, sex, handicap, familial status, or other protected-class status.
The listing will be terminated if the seller refuses to consider an offer because the prospective buyer is a member of a protected class.
The supervisor and broker will be informed of any suspected attempts by the seller to illegally discriminate.
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What should a broker do if asked a question that is outside his/her realm of expertise or knowledge?
The broker should refer the person asking the question to people who are experts in the field and limit him/herself to discussing aspects of the home, selling, buying, and listing properties.
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If asked a question about your opinion of a neighborhood, what is it okay for you to say?
You can mention the neighborhood's features in relation to their location within the city, closeness to shopping, or other benefits, but nothing that could relate to any of the protected classes.
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How should a broker answer if asked about the race of a prospective buyer?
The broker should say it is inappropriate for him/her to give out such information.
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How is "testing" defined?
A simulated housing transaction designed to obtain evidence of differential treatment based on an individual's protected class status.
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If you think you are being tested, what should you do or not do?
- Don't frustrate the tester.
- Treat the tester as any other buyer you encounter.
- Respond only to questions asked and don't volunteer information concerning fair housing violations.
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List five issues of interest to testers.
- What took place when the tester entered the office?
- How long did the tester wait to be interviewed?
- How did the people in the office treat the tester?
- Where was the tester interviewed?
- What information did the agent request about the tester's housing needs?
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List the 7 rules a broker should follow to reduce his/her risk in dealing with fair housing issues.
- Know your job.
- Know the law.
- Sell the seller.
- Practice equal professional service.
- Keep good records.
- Be consistent in behavior, service, and paperwork.
- Keep up to date with law changes.
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Equal Opportunities
equal opportunity poster with slogan must be______ at all brokerages, model home sites, mortgage lenders' offices, and other related location
on display
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Listing Agreements
agreement should make it clear the agent will observe the rules regarding fair housing and will report any attempts to illegally ______
discriminate
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Providing the Right Information
questions for information outside your realm of expertise or knowledge should be referred to___________
limit discussions to aspects of the home, selling, buying, and listing properties
experts in the related field
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Answering Questions
do not express your_____ in regards to protected classes
commenting on features of neighborhood are ok
opinion
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Questions About Ethnic Makeup
broker must point out he/she cannot recommend housing based on any of the______
selecting properties based on ethnic makeup of the neighborhood could lead to _____charges
- protected classes
- steering
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Questions About Buyers
if asked about the race, etc. of the prospective buyer, the broker must tell the seller it is_________ to give out such information
seller cannot legally decline to show a property to members of any of the protected classes
inappropriate
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Uncovering Housing Discrimination – Testers
testers simulate housing transactions to obtain evidence of_________ or differential treatment
brokers should be aware of how to act if they think they are being tested
discrimination
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What Testers Look For
- What took place when tester entered the office?
- How long did the tester wait to be interviewed?
- How did people in the office treat the tester?
- Where was the interview conducted?
- What information was requested regarding the tester's housing needs and did the agent record the information?
- How many houses were shown as serious possibilities?
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Risk Reduction in Fair Housing7 to do
- Know your job.
- Know the law.
- Sell the seller.
- Practice equal professional service.
- Keep good records.
- Be consistent in behavior, service, and paperwork.
- Keep up with changes in the law.
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Why must a broker display the equal housing opportunity poster in his/her brokerage house?
So affiliated brokers will not have to explain fair housing practices to prospective clients
To comply with ADA requirements
To avoid prima facie evidence of discrimination if HUD investigates
Because it's recommended by HUD
To avoid prima facie evidence of discrimination if HUD investigates
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Housing covered under the Fair Housing Act does not include
boarding houses and dormitories.
vacant land intended for residential use.
rental mobile homes and their sites.
hotels.
Hotels
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If you are approached by a fair housing tester, you should
volunteer as much information as possible regarding any fair housing violations.
ask the tester for official identification.
never volunteer information concerning any fair housing violation.
not show the tester any listings or properties.
never volunteer information concerning any fair housing violation.
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