Real Estate Sales Exam Fair Housing and Ethics 4

Question 1

Under the Fair Housing Act, a landlord with 5 units in a building where they also reside is:

Accepted Answer

Exempt only if they do not use discriminatory advertising

Answer

Owner-occupied buildings of four or fewer units qualify for a limited FHA exemption, but only without discriminatory advertising and without a broker.

Question 2

Which statement about the Equal Credit Opportunity Act (ECOA) is correct?

Accepted Answer

It prohibits discrimination in mortgage lending based on race, color, religion, national origin, sex, marital status, or age

Answer

ECOA prohibits credit discrimination based on race, color, religion, national origin, sex, marital status, age, and receipt of public assistance.

Question 3

A seller instructs their agent: 'Do not show my home to anyone with an accent.' The agent's correct response is to:

Accepted Answer

Refuse the instruction and explain it violates fair housing law

Answer

An agent must refuse discriminatory instructions from a client, as following them would make the agent liable for fair housing violations.

Question 4

The maximum civil penalty for a first fair housing violation found by HUD is approximately:

Accepted Answer

$16,000

Answer

HUD can impose civil penalties up to approximately $16,000 for a first fair housing violation (amounts are periodically adjusted for inflation).

Question 5

A real estate agent posts a listing ad stating 'perfect for young professionals.' This phrasing potentially violates the FHA because it:

Accepted Answer

Discourages families with children, a protected class

Answer

Language that implies a preference for certain buyers can constitute discriminatory advertising under the FHA's familial status protections.

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Practice Test

Real Estate Sales Exam Fair Housing and Ethics 4