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

A seller knows the roof leaks during heavy rain but the home inspection did not catch it. What is the seller's disclosure obligation?

Answer: The seller must disclose the known defect regardless of the inspection results

Sellers are obligated to disclose all known material defects, even if a home inspection fails to identify them.

Which of the following is considered a protected class under the Fair Housing Act but NOT under the Civil Rights Act of 1866?

Answer: Familial status

The Civil Rights Act of 1866 covers only race and color, while the Fair Housing Act added protections for familial status, disability, religion, sex, and national origin.

An agent markets a condo with the phrase 'perfect for young professionals.' Does this violate fair housing laws?

Answer: Yes, because it implies a preference that could exclude families and older individuals

Advertising language suggesting a preference for a particular age group or lifestyle can violate fair housing laws by discouraging protected classes from applying.

In most states, which of the following is NOT typically required to be disclosed by the seller?

Answer: The presence of a registered sex offender in the neighborhood

Most states classify sex offender registry information as publicly available and do not require sellers to disclose it, though laws vary by state.

What is redlining in the context of fair housing?

Answer: Refusing to provide financial services to residents of certain areas based on race or ethnicity

Redlining is the discriminatory practice of denying or limiting financial services to residents of certain neighborhoods based on their racial or ethnic composition.

A buyer with a disability requests that the seller install a wheelchair ramp before closing. What is the seller's obligation?

Answer: The seller has no obligation to modify the property but must allow the buyer to do so at the buyer's expense

Under the Fair Housing Act, sellers must permit reasonable modifications by buyers with disabilities, but the cost of modifications is typically borne by the buyer.