Fair Housing and Ethics Flashcards

Which scenario constitutes illegal steering under the Fair Housing Act?

Answer: Directing a Hispanic buyer only to listings in predominantly Hispanic neighborhoods

Steering means directing buyers toward or away from neighborhoods based on their protected class characteristics.

A property built before 1978 must include which required disclosure in a sales transaction?

Answer: Lead-based paint disclosure

Federal law requires sellers of pre-1978 homes to disclose known lead-based paint hazards and provide buyers an EPA pamphlet.

The Civil Rights Act of 1866 prohibits discrimination based on:

Answer: Race only

The Civil Rights Act of 1866 prohibits racial discrimination in all property transactions with no exemptions.

An agent discovers their seller client is pricing the home above market solely to discourage minority buyers. The agent should:

Answer: Refuse to participate and may need to terminate the listing

An agent cannot participate in a discriminatory pricing scheme; they must refuse and may need to withdraw from the listing.

Which of the following is NOT a protected class under the federal Fair Housing Act?

Answer: Sexual orientation

Sexual orientation is not a federally protected class under the FHA, though many states and localities add this protection.

Under the Fair Housing Act, the term 'handicap' includes:

Answer: Any physical or mental impairment that substantially limits a major life activity

The FHA broadly defines handicap as any physical or mental impairment that substantially limits one or more major life activities.

A buyer's agent who withholds information about a neighborhood's racial composition to avoid steering allegations is:

Answer: Potentially violating their fiduciary duty to the buyer

Withholding material information the buyer requested can breach the agent's fiduciary duty, even when done to avoid discrimination claims.