CA Real Estate Fair Housing Laws 1 — Questions and Answers
Question 1: Which federal law is the primary law prohibiting discrimination in the sale, rental, and financing of housing?
- Civil Rights Act of 1866
- Fair Housing Act of 1968 (Correct answer)
- Americans with Disabilities Act of 1990
- Equal Credit Opportunity Act of 1974
Correct answer: Fair Housing Act of 1968
The Fair Housing Act of 1968 (Title VIII of the Civil Rights Act of 1968) is the primary federal law prohibiting housing discrimination.
Question 2: How many protected classes are established under the federal Fair Housing Act?
- 5
- 6
- 7 (Correct answer)
- 9
Correct answer: 7
The federal Fair Housing Act protects seven classes: race, color, religion, national origin, sex, familial status, and disability.
Question 3: A real estate agent who discourages buyers from purchasing in certain neighborhoods based on the racial composition of those neighborhoods is guilty of:
- Redlining
- Blockbusting
- Steering (Correct answer)
- Commingling
Correct answer: Steering
Steering is the illegal practice of directing buyers toward or away from certain neighborhoods based on the protected characteristics of current residents.
Question 4: The practice of inducing homeowners to sell by suggesting that members of a protected class are moving into the neighborhood is called:
- Steering
- Blockbusting (Correct answer)
- Redlining
- Puffing
Correct answer: Blockbusting
Blockbusting (also called panic selling) is the illegal practice of inducing homeowners to sell by suggesting protected class members are moving in, with the aim of depressing property prices.
Question 5: Which of the following is NOT a protected class under the federal Fair Housing Act?
- Familial status
- Disability
- Sexual orientation (Correct answer)
- National origin
Correct answer: Sexual orientation
Sexual orientation is not a protected class under the federal Fair Housing Act, though California's state law does provide this protection.
Question 6: A lender who refuses to make mortgage loans in certain neighborhoods based on the racial or ethnic composition of those areas is engaging in:
- Steering
- Blockbusting
- Redlining (Correct answer)
- Panic selling
Correct answer: Redlining
Redlining is the illegal practice of refusing to provide financial services in certain geographic areas, typically based on the racial composition of those neighborhoods.
Question 7: How long does a person have to file a complaint with HUD after a fair housing violation?
- 60 days
- 90 days
- 1 year (Correct answer)
- 2 years
Correct answer: 1 year
A person has one year from the date of the alleged discriminatory act to file a complaint with the U.S. Department of Housing and Urban Development (HUD).
CA Real Estate Fair Housing Laws 1
Which federal law is the primary law prohibiting discrimination in the sale, rental, and financing of housing?