FREE Real Estate Sales Fair Housing and Disclosures Questions and Answers Flashcards

A seller instructs their agent not to show the property to families with children. What should the agent do?

Answer: Refuse the instruction because it violates the Fair Housing Act's familial status protections

The Fair Housing Act prohibits discrimination based on familial status, and agents must refuse discriminatory instructions from clients.

Which of the following properties is EXEMPT from the Federal Fair Housing Act?

Answer: A duplex where the owner lives in one unit and rents the other without using a broker

The Mrs. Murphy exemption allows owner-occupied buildings with four or fewer units to be exempt, provided no broker is used and no discriminatory advertising is published.

A buyer's agent discovers that a neighboring property was previously used as a methamphetamine lab. Is this a required disclosure?

Answer: Yes, because it is a material fact that could affect the buyer's decision

Material facts that could affect a buyer's use or value of the property, including known hazardous conditions on neighboring properties, generally must be disclosed.

Under the Fair Housing Act, which action constitutes illegal steering?

Answer: Providing a buyer with listings only in neighborhoods matching their racial background

Steering occurs when an agent directs buyers toward or away from neighborhoods based on protected class characteristics such as race.

A property built in 1972 is being sold. What must the seller disclose regarding lead-based paint?

Answer: The seller must provide the EPA lead hazard pamphlet and disclose any known lead-based paint

Federal law requires sellers of homes built before 1978 to provide the EPA pamphlet and disclose any known lead-based paint or hazards.

Which scenario best illustrates blockbusting?

Answer: An agent tells homeowners that people of a different race are moving into the area to induce panic selling

Blockbusting is the illegal practice of inducing owners to sell by suggesting that a protected class is moving into the neighborhood, causing property values to decline.