Free Arizona Real Estate License Disclosure and Fair Housing Questions and Answers 1 — Questions and Answers
Question 1: A prospective tenant who uses a wheelchair wants to rent a ground-floor apartment. They ask for permission to install a ramp over the single step leading to the front door, offering to pay for the installation themselves. Under the Fair Housing Act, what is the landlord's obligation?
- The landlord must allow the modification and pay for the installation as a reasonable accommodation.
- The landlord can deny the request because it alters the exterior appearance of the property.
- The landlord must permit the modification but can require the tenant to restore the property to its original condition upon moving out. (Correct answer)
- The landlord can approve the request only if the tenant pays an additional, non-refundable 'modification fee'.
Correct answer: The landlord must permit the modification but can require the tenant to restore the property to its original condition upon moving out.
The Fair Housing Act requires landlords to allow tenants with disabilities to make reasonable modifications to the premises at the tenant's expense. The landlord can legally require the tenant to agree to restore the interior of the premises to its original condition when they vacate.
Question 2: Under Arizona law (A.R.S. § 32-2156), which of the following material facts regarding a property is a real estate licensee NOT required to disclose?
- The property was the site of a homicide two years ago. (Correct answer)
- A portion of the property is located in a designated FEMA flood plain.
- The seller is aware of a significant, unrepaired crack in the foundation.
- The adjacent vacant lot has been rezoned for commercial use.
Correct answer: The property was the site of a homicide two years ago.
Arizona Revised Statute § 32-2156 specifically states that a seller or licensee is not liable for failing to disclose that a property was the site of a natural death, suicide, homicide, or any other felony. The other options represent material facts about the property's physical condition or external influences that must be disclosed.
Question 3: A real estate agent is writing an advertisement for a third-floor, walk-up apartment. Which of the following phrases would be a violation of fair housing laws?
- "Top-floor unit with great city views."
- "Must see! Perfect for students or professionals."
- "No children allowed due to safety concerns." (Correct answer)
- "Located in a quiet, mature building."
Correct answer: "No children allowed due to safety concerns."
Stating "No children allowed" is a clear violation of the Fair Housing Act's protection of familial status. While phrases like "perfect for professionals" or "mature building" could be viewed as subtly discriminatory, an outright prohibition against children is a direct violation. The focus of advertising should be on the property's features, not the desired occupants.
Question 4: A buyer's agent is preparing an offer for a single-family home constructed in 1972. What is the agent's primary disclosure responsibility regarding potential lead-based paint?
- To personally guarantee that the property is free of lead-based paint hazards.
- To ensure the buyer receives the EPA pamphlet "Protect Your Family from Lead in Your Home" and the seller's disclosure of any known lead paint before the contract is binding. (Correct answer)
- To require the seller to conduct a professional lead-based paint abatement before closing.
- To disclose the potential for lead-based paint only if the buyers have young children.
Correct answer: To ensure the buyer receives the EPA pamphlet "Protect Your Family from Lead in Your Home" and the seller's disclosure of any known lead paint before the contract is binding.
The federal Residential Lead-Based Paint Hazard Reduction Act of 1992 requires that for most housing built before 1978, sellers must provide buyers with an EPA-approved pamphlet, disclose any known lead-based paint or hazards, and provide any available reports. The agent is responsible for ensuring the seller complies with these disclosure requirements before the buyer is obligated under the contract.
Question 5: A real estate licensee is working with buyers who tell her they want to live in a neighborhood with "good people" and "traditional values." The licensee interprets this to mean a predominantly white, Christian area and only shows them homes in such neighborhoods, avoiding other areas that also meet the buyers' stated financial and property criteria. This illegal practice is best described as:
- Blockbusting
- Redlining
- Steering (Correct answer)
- Appraisal fraud
Correct answer: Steering
Steering is the illegal practice of guiding or directing prospective buyers to or away from certain neighborhoods based on their protected class characteristics, such as race or religion, rather than their objective housing criteria. Blockbusting involves inducing panic selling, and redlining is discriminatory lending practices by financial institutions.
Question 6: A seller completes the Arizona Association of REALTORS® Residential Seller's Property Disclosure Statement (SPDS). They fail to mention a slow plumbing leak under the kitchen sink that they know about, hoping the buyer's inspector won't find it. The failure to disclose this known issue is a violation of the seller's duty to disclose:
- Psychological stigmas.
- Latent defects. (Correct answer)
- Patent defects.
- Future zoning changes.
Correct answer: Latent defects.
A latent defect is a fault in the property that is not readily observable or discoverable by a reasonable inspection, such as a slow, hidden leak. Arizona law requires sellers to disclose all known latent material defects to the buyer. A patent defect is one that is obvious and easily discovered.
Free Arizona Real Estate License Disclosure and Fair Housing Questions and Answers 1
A prospective tenant who uses a wheelchair wants to rent a ground-floor apartment.
They ask for permission to install a ramp over the single step leading to the front door, offering to pay for the installation themselves.
Under the Fair Housing Act, what is the landlord's obligation?