Arkansas Real Estate License Fair Housing and Federal Laws 2 — Questions and Answers
Question 1: Under the Fair Housing Act, which of the following properties is generally exempt from its provisions?
- A single-family home sold by the owner without using a real estate agent or discriminatory advertising (Correct answer)
- Any apartment complex with fewer than 10 units
- Privately owned commercial properties
- Condominiums managed by a homeowners association
Correct answer: A single-family home sold by the owner without using a real estate agent or discriminatory advertising
Owner-occupied single-family homes sold without a broker and without discriminatory advertising qualify for a limited Fair Housing Act exemption.
Question 2: The Equal Credit Opportunity Act (ECOA) prohibits credit discrimination based on:
- Race, color, religion, national origin, sex, marital status, and age (Correct answer)
- Only race and national origin
- Race, sex, and disability only
- Any characteristic not related to creditworthiness
Correct answer: Race, color, religion, national origin, sex, marital status, and age
ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age, and receipt of public assistance.
Question 3: Under the Fair Housing Act, a person with a disability has the right to:
- Request reasonable modifications to a rental unit at their own expense (Correct answer)
- Demand any modifications regardless of cost to the landlord
- Require the landlord to pay for all accessibility upgrades
- Terminate a lease if the unit is not fully ADA compliant
Correct answer: Request reasonable modifications to a rental unit at their own expense
Disabled tenants have the right to make reasonable modifications at their own expense, with the landlord's permission, to accommodate their disability.
Question 4: Which Act requires lenders to disclose the annual percentage rate (APR) and total cost of credit to borrowers?
- The Truth in Lending Act (TILA) (Correct answer)
- The Real Estate Settlement Procedures Act (RESPA)
- The Home Mortgage Disclosure Act (HMDA)
- The Community Reinvestment Act (CRA)
Correct answer: The Truth in Lending Act (TILA)
TILA requires lenders to disclose the APR and total cost of credit so borrowers can compare loan terms accurately.
Question 5: RESPA prohibits which of the following practices?
- Kickbacks and unearned fees between settlement service providers (Correct answer)
- Requiring buyers to use a specific lender
- Charging points on a mortgage loan
- Offering seller concessions
Correct answer: Kickbacks and unearned fees between settlement service providers
RESPA prohibits kickbacks, referral fees, and unearned fees paid between settlement service providers in a real estate transaction.
Question 6: Under the Americans with Disabilities Act (ADA), which type of property must be accessible to persons with disabilities?
- Commercial facilities and places of public accommodation (Correct answer)
- All residential rental properties regardless of size
- Single-family homes listed on the MLS
- Only federally funded housing projects
Correct answer: Commercial facilities and places of public accommodation
The ADA requires accessibility in commercial facilities and places of public accommodation, not private residential properties.
Arkansas Real Estate License Fair Housing and Federal Laws 2
Under the Fair Housing Act, which of the following properties is generally exempt from its provisions?