California Real Estate Chapter 14 Flashcards

California Real Estate Chapter 14 Flashcards

• A developer who intended to rent housing in a

particular development only to persons 45 years of age or

over would be in violation of the:A. Civil Rights Act of

1866B. Civil Rights Act of 1964C. Fair Housing ActD.Americans with Disabilities Act

• Fair Housing Act
• The Home Mortgage Disclosure Act helps to enforce the

prohibition against:A. redliningB. steeringC. blockbustingD.

flipping

• redlining
• To comply with the federal Fair Housing Act, a landlord

is required to:A. permit a disabled tenant to make

reasonable modifications to the property at the tenant's expenseB. make reasonable exceptions to the landlord's rules to accommodate disabled tenantsC. Both a) and b)D.Neither a) nor b)

• Both a) and b)
• A deed restriction created in 1920 that prohibits the sale

of property to a non-white person until after 2020 is:A. valid

until all the property owners agree to eliminate the restrictionB. enforceableC. unenforceableD. covered by title insurance

• unenforceable
• Under California law, it would be permissible for a

landlord to refuse to rent to a prospective tenant because

the tenant:A. has a childB. is blindC. can't afford the rentD.

All of the above

• can't afford the rent

14. Under the Americans with Disabilities Act:A. real estate

firms are exemptB. real estate firms may discriminate against people with disabilities when taking listings, if appropriateC. real estate offices must be accessible to people with disabilitiesD. only individual real estate agents are prohibited from discriminating against people with disabilities

• real estate offices must be accessible to people with

disabilities

• Rental of a room or a unit in an owner-occupied dwelling

is exempt from the federal Fair Housing Act if the dwelling

contains:A. two or more unitsB. three units or lessC. less

than five unitsD. six units or more

• less than five units

Blockbusting(Panic selling)(Panic peddling)It is illegal for a real estate agent to induce home owners to sell or list their homes by predicting that members of another race or ethnic group, or people suffering from some disability, will be moving into the neighborhood.Occurs when someone tries to induce homeowners to list or sell their homes by predicting that people of another race (or people who have certain

disabilities, people with a particular ethnic background, etc.) will be moving into the neighborhood, and that this will have undesirable consequences such as lower property values.The blockbuster then profits by buying the homes at reduced prices or (in the case of a real estate agent) by collecting commissions on the induced sales.Ex. Right after an African-American family moves into an all-white neighborhood, real estate agents working for XYZ Realty start calling all the other homeowners in the neighborhood.The agents imply that several other black families are planning on buying homes there, and suggest that this will lead to a sharp increase in crime and a dramatic drop in property values.The agents warn the homeowners that within months it will be difficult to sell their homes at any price.Because of these calls, several homeowners immediately list their homes with XYZ Realty.XYZ and its agents are guilty of blockbusting.California Antidiscrimination Legislation Real estate agents, sellers, landlords, and others involved in real estate activities must comply not only with the federal laws we've covered, but also with state laws that prohibit discrimination.In California,-the Unruh Civil Rights Act,-the Fair Employment and Housing Act,-the Housing Financial Discrimination Act, and-the Real Estate Law all

have provisions designed to promote fairness in real estate transactions.Exemptions - The Fair Housing ActExemptions. While the Fair Housing Act applies to the majority of residential real estate transactions, four types of

transactions are exempt from it.-For sale by owner:The Fair

Housing Act doesn't apply to a single-family home sold or rented by a private individual, provided that the owner owns

no more than three homes...No discriminatory advertising is used...and neither a real estate broker, nor anyone else in the business of selling or renting homes, is employed.If the owner isn't the most recent occupant of the home, she may only use this exemption once every 24

months.Provided:-Owns no more than 3 homes-No

discriminatory advertising-Doesn't use a broker-Exemption allowed once every 24 months.-Owner-occupied

rentals:The Fair Housing Act also doesn't apply to rental of

a room or unit in a dwelling with up to four units, provided that the owner resides on the property...No discriminatory advertising is used...And a real estate broker isn't employed-Religious organizationsThe Fair Housing Act permits religious organizations dealing with their own property in noncommercial transactions......to limit occupancy or give preference to their own members, unless membership is restricted on the basis of race, color,

or national origin.Provided:-Church's own

property-Noncommercial transactions-Membership not restricted on basis of race, color, or national origin.-Private

clubs:Private clubs with lodgings may restrict occupancy or

give preference to their own members, as long as the lodgings are not open to the public and are not operated for

a commercial purpose.Provided:-Not open to the public-Not

operated for commercial purpose-Exemptions rarely

apply:Remember, the Fair Housing Act applies to any

transaction involving a real estate agent.It's never legal for a real estate agent to discriminate, and an agent who thinks a client is going to discriminate should withdraw from the transaction.In addition, the federal Fair Housing Act's exemptions are essentially irrelevant in a state like California, where the state fair housing law is stricter than the federal law.1. The law doesn't apply to the sale or rental of a single-family home by its owner, provided

that:-the owner doesn't own more than three such

homes;-no real estate broker or agent is employed in the transaction; and-no discriminatory advertising is used.If the owner isn't the most recent occupant of the home, he may use this exemption only once every 24 months.2. The law doesn't apply to the rental of a unit or a room in a dwelling

with up to four units, provided that:-the owner occupies one

of the units as her residence;-no real estate broker or agent is employed; and-no discriminatory advertising is used.(This is sometimes called the Mrs. Murphy exemption.)3. In dealing with their own property in