Real Estate Sales Exam Real Estate Sales Fair Housing and Disclosures 1

Question 1

A real estate licensee tells prospective buyers that a particular neighborhood is 'changing' and suggests they look at homes in another area instead. This practice is known as:

Accepted Answer

Steering

Answer

Steering is the illegal practice of guiding buyers toward or away from certain neighborhoods based on protected class characteristics. Directing buyers to different areas based on racial or ethnic composition of a neighborhood violates the Fair Housing Act.

Question 2

Under the Federal Fair Housing Act, which of the following is a protected class?

Accepted Answer

National origin

Answer

National origin is one of the seven federally protected classes under the Fair Housing Act of 1968. The seven classes are race, color, religion, sex, national origin, disability, and familial status. Marital status, sexual orientation, and income level are not federally protected (though some states add additional protections).

Question 3

A lender refuses to provide mortgage loans in a specific geographic area regardless of the applicants' qualifications, based on the racial composition of that area. This practice is called:

Accepted Answer

Redlining

Answer

Redlining is the illegal practice of denying financial services, such as mortgages, to residents in certain geographic areas based on race or other protected characteristics. The term originated from lenders literally drawing red lines around minority neighborhoods on maps.

Question 4

A homeowner discloses to a buyer's agent that the home's roof leaks during heavy rain. The agent is representing the seller. What must the agent do with this information?

Accepted Answer

Disclose it to potential buyers because it is a material fact

Answer

A known roof leak is a material fact that could affect the buyer's decision or the property's value. Agents have a duty to disclose material defects to all parties, even when representing the seller. Concealing known material defects constitutes fraud and violates real estate license law.

Question 5

Under the Fair Housing Act, which of the following advertising statements would be considered discriminatory?

Accepted Answer

'Perfect for a Christian family'

Answer

Advertising a property as 'Perfect for a Christian family' expresses a religious preference, which violates the Fair Housing Act's prohibition on discriminatory advertising. Real estate ads cannot indicate any preference, limitation, or discrimination based on protected class characteristics.

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Real Estate Sales Fair Housing and Disclosures 1