Arizona Real Estate License Disclosure and Fair Housing 3 — Questions and Answers
Question 1: A buyer's agent discovers the home is in a designated flood zone but the seller did not mention it. The agent should:
- Say nothing since it is public record
- Disclose the material fact to the buyer (Correct answer)
- Advise the buyer only after closing
- Refer the buyer to the seller's agent
Correct answer: Disclose the material fact to the buyer
A property's location in a flood zone is a material fact that must be disclosed to the buyer.
Question 2: Which federal agency is primarily responsible for enforcing the Fair Housing Act?
- FTC
- HUD (Correct answer)
- IRS
- SEC
Correct answer: HUD
The U.S. Department of Housing and Urban Development (HUD) enforces the Fair Housing Act.
Question 3: A landlord refuses to allow a tenant with a disability to install a wheelchair ramp at the tenant's expense. This likely violates the requirement to allow:
- A reasonable accommodation
- A reasonable modification (Correct answer)
- A rent concession
- A security deposit waiver
Correct answer: A reasonable modification
Allowing a tenant to make a structural change such as a ramp at their own expense is a reasonable modification protected under fair housing law.
Question 4: Blockbusting refers to the illegal practice of:
- Refusing to lend in certain neighborhoods
- Inducing owners to sell by claiming a protected class is moving in (Correct answer)
- Charging higher commissions in minority areas
- Advertising only to certain groups
Correct answer: Inducing owners to sell by claiming a protected class is moving in
Blockbusting involves persuading owners to sell by suggesting that people of a protected class are entering the neighborhood.
Question 5: In Arizona, how long must a licensee's broker generally retain transaction and disclosure records?
- 1 year
- 3 years
- 5 years (Correct answer)
- 10 years
Correct answer: 5 years
Arizona brokers must retain transaction records, including disclosures, for at least five years.
Question 6: A seller instructs a licensee not to show the home to buyers of a particular race. The licensee should:
- Comply with the client's wishes
- Refuse and explain that this violates fair housing law (Correct answer)
- Show the home only to that race
- Cancel all showings
Correct answer: Refuse and explain that this violates fair housing law
A licensee must refuse discriminatory instructions because complying would violate the Fair Housing Act.
Question 7: Which of the following advertising statements would violate fair housing law?
- 'Spacious three-bedroom home'
- 'Perfect for a Christian family' (Correct answer)
- 'Close to public transit'
- 'Recently renovated kitchen'
Correct answer: 'Perfect for a Christian family'
Expressing a preference or limitation based on religion in advertising violates the Fair Housing Act.
Arizona Real Estate License Disclosure and Fair Housing 3
A buyer's agent discovers the home is in a designated flood zone but the seller did not mention it.
The agent should: