Real Estate Sales Exam Fair Housing and Disclosures 5 — Questions and Answers
Question 1: A tenant with a physical disability requests permission to install grab bars in the bathroom. Under the Fair Housing Act, the landlord must:
- Refuse because it would damage the property
- Allow the modification at the tenant's expense, and may require restoration at move-out (Correct answer)
- Pay for the modification as a reasonable accommodation
- Only allow modifications if the building has 10 or more units
Correct answer: Allow the modification at the tenant's expense, and may require restoration at move-out
Landlords must allow disabled tenants to make reasonable modifications at their own expense and may require restoration of the unit at move-out.
Question 2: Under RESPA, what is the maximum number of months of escrow that a lender can collect at closing for property taxes?
- 1 month
- 2 months (Correct answer)
- 3 months
- 6 months
Correct answer: 2 months
RESPA limits the initial escrow deposit to no more than two months of escrow payments as a cushion.
Question 3: An agent advertises a property as located in a 'Christian neighborhood.' This advertisement violates:
- Only state advertising laws
- The Fair Housing Act's prohibition on discriminatory advertising (Correct answer)
- RESPA
- Truth in Lending Act
Correct answer: The Fair Housing Act's prohibition on discriminatory advertising
Advertising that expresses a preference for or against any protected class, including religion, violates the Fair Housing Act.
Question 4: Which of the following scenarios describes a legitimate affirmative marketing requirement?
- A developer only advertising in minority publications to reach underserved communities (Correct answer)
- A landlord only renting to members of one religion to build community cohesion
- A seller refusing to show the property to families with children
- A lender charging minorities higher interest rates to offset perceived risk
Correct answer: A developer only advertising in minority publications to reach underserved communities
Affirmative marketing to underserved communities is encouraged under HUD programs to increase housing access, unlike discriminatory practices.
Question 5: A real estate agent is aware that a home is located in a flood zone. This information:
- Need not be disclosed unless the buyer asks
- Is a material fact that must be disclosed to potential buyers (Correct answer)
- Is confidential information protected by the seller's privacy rights
- Only needs to be disclosed in coastal states
Correct answer: Is a material fact that must be disclosed to potential buyers
Flood zone designation is a material fact that significantly affects property value and insurance costs and must be disclosed.
Question 6: Which of the following is an example of a reasonable accommodation under the Fair Housing Act?
- A landlord waiving the no-pets policy to allow a service animal for a tenant with PTSD (Correct answer)
- A landlord reducing rent for all disabled tenants
- A landlord renovating all units to be wheelchair accessible
- A landlord providing disabled tenants with a designated parking spot at extra cost
Correct answer: A landlord waiving the no-pets policy to allow a service animal for a tenant with PTSD
Waiving a no-pets policy for a service or emotional support animal is a classic example of a reasonable accommodation at no charge.
Question 7: An agent who represents both the buyer and seller in the same transaction without full disclosure is committing:
- Blockbusting
- Undisclosed dual agency (Correct answer)
- Puffing
- Commingling
Correct answer: Undisclosed dual agency
Undisclosed dual agency is illegal because it conceals a conflict of interest and violates the agent's fiduciary duties to both parties.
Real Estate Sales Exam Fair Housing and Disclosures 5
A tenant with a physical disability requests permission to install grab bars in the bathroom.
Under the Fair Housing Act, the landlord must: