Arizona Real Estate License Disclosure and Fair Housing 2 — Questions and Answers
Question 1: Under the federal Fair Housing Act, which of the following is NOT a protected class?
- Familial status
- Sexual orientation (Correct answer)
- National origin
- Religion
Correct answer: Sexual orientation
The seven federal protected classes are race, color, religion, national origin, sex, disability, and familial status; sexual orientation is not federally protected under the Fair Housing Act.
Question 2: An Arizona seller knows the roof leaks during heavy rain. What must the licensee advise regarding this material fact?
- It may be concealed if the buyer does not ask
- It must be disclosed because it is a known material defect (Correct answer)
- Only structural defects require disclosure
- Disclosure is optional if the price is reduced
Correct answer: It must be disclosed because it is a known material defect
Known material defects that affect the property's value or desirability must be disclosed to the buyer.
Question 3: Which Arizona form is commonly used for a seller to disclose the property's condition to a buyer?
- SPDS (Seller Property Disclosure Statement) (Correct answer)
- HUD-1 Settlement Statement
- Uniform Commercial Code filing
- Lead-Based Paint Addendum
Correct answer: SPDS (Seller Property Disclosure Statement)
The SPDS is the standard Arizona form sellers use to disclose known material facts about the property's condition.
Question 4: A licensee tells a family with children that a quiet complex 'is really more suited to adults.' This is an example of:
- Legitimate market advice
- Steering based on familial status (Correct answer)
- Required disclosure
- A permitted senior-housing exemption
Correct answer: Steering based on familial status
Directing families with children away from housing based on their familial status is illegal steering under fair housing law.
Question 5: Federal lead-based paint disclosure rules apply to residential properties built before which year?
- 1968
- 1978 (Correct answer)
- 1988
- 1998
Correct answer: 1978
The Residential Lead-Based Paint Hazard Reduction Act requires disclosure for homes built before 1978.
Question 6: Under Arizona law, a licensee must disclose which of the following about a property?
- That a prior occupant died of natural causes on the property
- A known defect in the septic system (Correct answer)
- That a neighbor was convicted of a felony
- That a prior occupant had a contagious disease
Correct answer: A known defect in the septic system
Physical material defects like a failing septic system must be disclosed, while Arizona statute specifically exempts stigmatizing facts such as natural death or disease.
Question 7: The 'Mrs. Murphy' exemption under the Fair Housing Act may apply to:
- Any single-family home sold by owner
- An owner-occupied dwelling of four or fewer units (Correct answer)
- All commercial rental buildings
- Housing operated by a religious organization only
Correct answer: An owner-occupied dwelling of four or fewer units
The exemption can apply to owner-occupied buildings with four or fewer units when no broker is used and no discriminatory advertising occurs.
Arizona Real Estate License Disclosure and Fair Housing 2
Under the federal Fair Housing Act, which of the following is NOT a protected class?