Real Estate Sales Exam Fair Housing and Ethics 5 — Questions and Answers
Question 1: A buyer asks their agent whether a neighborhood has 'many families like us.' The agent's best response is to:
- Answer honestly based on census data
- Refer the buyer to publicly available resources and avoid making demographic characterizations (Correct answer)
- Tell the buyer the neighborhood is diverse
- Decline to work with the buyer
Correct answer: Refer the buyer to publicly available resources and avoid making demographic characterizations
Agents should avoid making demographic characterizations about neighborhoods and instead direct buyers to public resources like census data or local agencies.
Question 2: Which of the following is a permissible reason for a landlord to deny a rental application?
- The applicant has a service animal
- The applicant has poor credit history and prior evictions (Correct answer)
- The applicant is a single mother with two children
- The applicant practices a non-Christian religion
Correct answer: The applicant has poor credit history and prior evictions
Landlords may lawfully deny applicants based on legitimate financial criteria such as poor credit or eviction history.
Question 3: Under the Fair Housing Act, a 'reasonable modification' is best described as:
- A structural change to common areas made at the landlord's expense
- A physical change to the unit made by the tenant with disabilities at their own expense (Correct answer)
- A waiver of the security deposit for disabled tenants
- A mandatory unit upgrade required by the landlord
Correct answer: A physical change to the unit made by the tenant with disabilities at their own expense
Tenants with disabilities may make reasonable modifications to their unit at their own expense, and in most private housing the landlord cannot be required to pay.
Question 4: A real estate licensee discovers a colleague is engaging in discriminatory practices. Under NAR's Code of Ethics, the licensee should:
- Ignore it to avoid professional conflict
- Report the conduct to the appropriate board or association (Correct answer)
- Confront the colleague publicly on social media
- Advise the affected party to file a police report
Correct answer: Report the conduct to the appropriate board or association
NAR's Code of Ethics (Article 16 and general ethics obligations) encourages members to report known violations through proper association channels.
Question 5: Which act extended fair housing protections specifically to persons with disabilities and families with children?
- Civil Rights Act of 1964
- Fair Housing Amendments Act of 1988 (Correct answer)
- Americans with Disabilities Act of 1990
- Equal Credit Opportunity Act of 1974
Correct answer: Fair Housing Amendments Act of 1988
The Fair Housing Amendments Act of 1988 added disability (handicap) and familial status as protected classes under the FHA.
Question 6: A listing agent learns that their seller is HIV-positive. Under fair housing and confidentiality principles, the agent should:
- Disclose the seller's condition to all prospective buyers as a material fact
- Keep the seller's medical status confidential and not disclose it (Correct answer)
- Refuse to list the property to avoid liability
- Disclose only if the buyer specifically asks about the seller's health
Correct answer: Keep the seller's medical status confidential and not disclose it
A seller's HIV status is not a material fact requiring disclosure, and revealing it could constitute disability discrimination under the FHA.
Question 7: An agent who represents both the buyer and seller in the same transaction without full disclosure and informed consent of both parties is guilty of:
- Commingling
- Undisclosed dual agency (Correct answer)
- Blockbusting
- Conversion
Correct answer: Undisclosed dual agency
Undisclosed dual agency occurs when an agent represents both sides of a transaction without informing and obtaining consent from both parties.
Real Estate Sales Exam Fair Housing and Ethics 5
A buyer asks their agent whether a neighborhood has 'many families like us.' The agent's best response is to: