Real Estate Sales Exam Fair Housing and Ethics 3

Question 1

Which scenario constitutes illegal steering under the Fair Housing Act?

Accepted Answer

Directing a Hispanic buyer only to listings in predominantly Hispanic neighborhoods

Answer

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

Question 2

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

Accepted Answer

Lead-based paint disclosure

Answer

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

Question 3

The Civil Rights Act of 1866 prohibits discrimination based on:

Accepted Answer

Race only

Answer

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

Question 4

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

Accepted Answer

Refuse to participate and may need to terminate the listing

Answer

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

Question 5

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

Accepted Answer

Sexual orientation

Answer

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

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