Unit 5 : Marketing Regulations

Front 1

A seller has knowledge of an environment impact report that is being done on a nearby industrial park. Because the report is not complete, the seller does NOT have to disclose the report

Back 1

False. Because the report may impact the value and the buyers decision, this is a material fact that must be disclosed.

Front 2

A seller of a property that was built in 1988 will need to give the buyer a lead-based paint disclosure

Back 2

False. Only before January 1, 1978

Front 3

Lead might be found in paint

Back 3

True

Front 4

Lead might be found in insulation

Back 4

False

Front 5

Lead might be found in flooring

Back 5

False

Front 6

Lead might be found in house paint after 1978

Back 6

False

Front 7

Lead might be found in pipes

Back 7

True

Front 8

Lead might be found in Soil

Back 8

True

Front 9

Stigmatized property laws are determined at the federal level

Back 9

False. By each state

Front 10

Environmental issues, known and latent material facts, and issues in the surrounding areas that might impact value are examples of stigmatized issues that do not have to be disclosed

Back 10

False. Material facts that must be disclosed

Front 11

Radon, mold, and asbestos may require mitigation, cleanup, or abatement

Back 11

True

Front 12

A seller tells the broker the radon issue has been solved, but the broker suspects it may still be an issue. The broker does NOT have to disclose because his duty is to the seller.

Back 12

False. A real estate professional must disclose all material facts or suspicions if he believes they might change a buyers decision

Front 13

Radon and carbon monoxide are colorless and odorless gases that can cause harm or death

Back 13

True

Front 14

Asbestos encapsulation is often a safer and better solution than abatement or removal

Back 14

True

Front 15

All molds are considered toxic and must be removed

Back 15

False. Many molds are beneficial

Front 16

Lead-based paint disclosures allow the buyer to waive the right to an inspection.

Back 16

True

Front 17

Sellers must remove all known lead-based paint

Back 17

False. Must disclose, not test or remove

Front 18

Landlords must give tenants a lead-based paint disclosure if the property being rented was built before January 1, 1978 (memory aid: 1-1-78)

Back 18

True

Front 19

The EPA regulates MOST environmental issues, including lead based paint

Back 19

True

Front 20

Septic systems, back lines, and sealed wells should be mitigated.

Back 20

False. Disclosed

Front 21

Environmental issues rarely impact value

Back 21

False. Often impact value

Front 22

Radon, mold, asbestos, lead based paint, and other environmental hazards must be disclosed if they are known.

Back 22

True

Front 23

Radon is relatively easy to detect and inexpensive to mitigate.

Back 23

True

Front 24

HIV and AIDS are covered under the original fair housing law.

Back 24

False. Covered under disability, which was added in 1988

Front 25

Federal fair housing protected classes of familial status and disability were added in 1977.

Back 25

False. 1988

Front 26

An owner of a five unit building that lives in one unit may refuse to tenants with children

Back 26

False. Could refuse if the building was for units or less

Front 27

An owner of a multiple unit property could legally refuse to rent to a tenant of a different race, if the building was four units or less and the owner lived in one unit

Back 27

False. May not discriminate based on race.

Front 28

Antitrust laws are used to promote and maintain competition

Back 28

True

Front 29

A group of brokers setting fees for the area are in violation of Regulation Z.

Back 29

False. Sherman Antitrust Act

Front 30

Employing brokers are allowed to discuss commissions at REALTOR meetings.

Back 30

False. Real estate professionals may not discuss commissions outside the office

Front 31

Someone who has recovered from a mental disability is protected under the Fair Housing Act

Back 31

True. Mental disability, or a history of having had such a disability, is covered.

Front 32

A person who suffered from a mental disability but has now recovered is no longer protected under the Fair Housing Act or the Americans with Disabilities Act

Back 32

False. The history of having had such a disability is covered

Front 33

A landlord may charge a handicapped tenant additional monies to pay for extra insurance

Back 33

False

Front 34

A landlord may require a handicapped tenant to restore his apartment to its original condition at termination of the lease.

Back 34

True

Front 35

It is acceptable to discriminate on the basis of race in the rental of a duplex where the owner occupies the other unit

Back 35

False. No exceptions for race

Front 36

An aggrieved party can file a federal lawsuit under the Fair Housing Act for up to one year following the alleged offense

Back 36

False. Two years to court; one year to make complaint to HUD

Front 37

A person who believes she has been discriminated against can file a civil lawsuit in federal court for up to two years after the act has been committed.

Back 37

True

Front 38

A property manager can market rental units as being for seniors only if 70% of the residents are at LEAST 65 years old.

Back 38

False. If 80% of residents are at least 55 years old

Front 39

Panic peddling, blockbusting, steering, and redlining are violations of the federal Fair Housing Act.

Back 39

True

Front 40

Under the federal Fair Housing Act, it is illegal to discriminate on the basis of age.

Back 40

False. Age is not a protected housing class.

Front 41

A broker fails to show rental properties to non-christian prospects because the owners have indicated that they do not want to rent to non-christian tenants. This is a violation of the federal Fair Housing Act.

Back 41

True

Front 42

A broker obtains listings in an integrated neighborhood by telling property owners that the value of their property is declining as the result of the influx of ethnic property owners. This is a violation of the federal Fair Housing Act.

Back 42

True. Called blockbusting or panic peddling

Front 43

Denying a rental based on marital status violates the federal Fair Housing Act.

Back 43

False. Not covered in federal law

Front 44

Denying housing to families with dependent children in a building where 80% of the units have at LEAST one person over 55 living in them violates the federal Fair Housing Act.

Back 44

False. Are exempt from familial status as long as 80% of the units have persons over age 55.

Front 45

A homeowner lives in his house, rents out four extra rooms, and refuses to rent to students violates the federal Fair Housing Act.

Back 45

False. Students are not a protected class

Front 46

The landlord runs an ad for a studio apartment that states no children are allowed violates the federal Fair Housing Act.

Back 46

True

Front 47

National origin is the only protected classification contained in both the 1866 Civil Rights Act and the 1968 Fair Housing Act.

Back 47

False. Race

Front 48

The Equal Credit Opportunity Act (ECOA) prohibits discrimination based on a borrower's age

Back 48

True

Front 49

It is acceptable to limit occupancy of studio apartments to adults only

Back 49

False. Familial status states must allow children

Front 50

Familial status refers to whether the parties in question are married or single

Back 50

False. Children under age 18 or a pregnant woman

Front 51

According to the federal Fair Housing Act, a handicapped individual is one with a physical or mental impairment that substantially limits one or more major life activities

Back 51

True

Front 52

A person who is suffering from drug abuse is protected under anti-discrimination law

Back 52

False. Drug abuse is not a protected classification unless the person is in recovery and not currently using illegal drugs

Front 53

A person who is suffering from alcoholism is protected under antidiscrimination law.

Back 53

True

Front 54

The purpose of the Americans with Disabilities Act (ADA) is to ensure equal access to public accommodations for disabled people

Back 54

True

Front 55

A landlord must rent to a convicted drug dealer who no longer deals drugs

Back 55

False. Law excludes those convicted of dealing drugs

Front 56

A person who is suffering with AIDS or who is HIV-positive is protected under antidiscrimination law

Back 56

True

Front 57

Public accommodations are required to remove architectural and communication barriers when readily achievable

Back 57

True

Front 58

A lenders prohibited practice of refusing to give loans secured by mortgages in a certain neighborhood or community because of the area's crime rate or racial or ethnic composition is known as steering

Back 58

False. Redlining

Front 59

Blockbusting is also known as panic peddling or panic selling

Back 59

True

Front 60

Failure to display the HUD equal housing opportunity poster can shift the burden of proof to a broker responding to a HUD complaint

Back 60

True

Front 61

If a building requires all units to be occupied by tenants age 35 or older, the landlord may discriminate on the basis of familial status, refusing to rent to pregnant women or families with children

Back 61

False. Must be at least 80% of the units occupied by people age 55 and older

Front 62

It is a violation of fair housing laws to refuse to rent to qualified individuals simply because a child will be occupying the residence

Back 62

True

Front 63

A landlord can refuse to allow a disabled tenant to make changes to a rental unit

Back 63

False. Must allow the changes but can require the tenant to return the unit to the same condition

Front 64

A disabled tenant may make reversible changes at her own expense and without permission

Back 64

True

Front 65

Homosexuals and students are covered under federal fair housing laws.

Back 65

False. Sexual orientation is protected on some local levels, but not federally; occupation is not protected

Front 66

Senior housing discriminates based on age.

Back 66

False. Familial status

Front 67

The Equal Credit Opportunity Act requires lenders to give written explanations of why credit was denied

Back 67

True

Front 68

A lender may refuse to loan in an area based on crime rates

Back 68

False. Would be redlining

Front 69

Minors are protected under ECOA.

Back 69

False. Minors are not allowed to enter into contracts or loans

Front 70

A lender may refuse to lend to someone who has retired because he might not live long enough to pay off the loan

Back 70

False. Age discrimination is not permitted under ECOA

Front 71

A seller has refused to accept a full price offer because it comes from a protected class. The broker could file a complaint and request the commission as damages.

Back 71

True

Front 72

ADA ensures private accommodations for the disabled

Back 72

False. Public

Front 73

A bank turning down a seasoned creditworthy investor who wants to buy in a high crime neighborhood is an example of legal redlining

Back 73

False. Redlining is never legal

Front 74

A broker against whom a discrimination claim has been filed will immediately have her license revoked

Back 74

False. HUD will first investigate the claim

Front 75

The law that requires lending to a qualified person who is receiving public assistance is the Trust in Lending Act.

Back 75

False. Equal Credit Opportunity Act (ECOA)

Front 76

An owner selling his own property (FSBO) may advertise that the property will NOT be sold to families with children

Back 76

False. May not use a broker or advertise exclusion

Front 77

A for sale by owner may refuse to sell the property to anyone with a different religion

Back 77

True

Front 78

Baptists, Iranians, Pueblo Indians, pregnanty women, and a drug user in rehab would all be covered uner fair housing law.

Back 78

True