Wisconsin Real Estate License Fair Housing and Ethics Questions and Answers 1 — Questions and Answers
Question 1: A licensee is working with a buyer who has young children. The licensee focuses the property search on neighborhoods with many families and near schools, while deliberately avoiding showing properties in a quiet, nearby subdivision primarily occupied by retirees. This is an example of what illegal practice?
- Redlining
- Blockbusting
- Steering (Correct answer)
- Puffing
Correct answer: Steering
Steering is the illegal practice of guiding prospective buyers towards or away from certain neighborhoods based on a protected class. In this case, the licensee is making housing choices for the buyer based on their familial status, which is a violation of the Fair Housing Act.
Question 2: The Wisconsin Open Housing Law adds several protected classes to those covered by the federal Fair Housing Act. Which of the following is a protected class under Wisconsin law but NOT under federal law?
- Race
- Lawful source of income (Correct answer)
- Familial Status
- Disability
Correct answer: Lawful source of income
The Federal Fair Housing Act protects against discrimination based on race, color, religion, sex, disability, familial status, and national origin. Wisconsin law adds protections for marital status, lawful source of income, age, sexual orientation, ancestry, and status as a victim of domestic abuse, sexual assault, or stalking.
Question 3: A prospective tenant who uses a wheelchair informs a landlord that they wish to rent an apartment. They also state that, at their own expense, they need to have grab bars installed in the bathroom. According to the Fair Housing Act, what is the landlord's obligation?
- The landlord can refuse the request as it alters the property.
- The landlord must pay for the installation of the grab bars.
- The landlord must allow the tenant to make the modification at the tenant's expense. (Correct answer)
- The landlord can only approve the request if the tenant pays an extra disability security deposit.
Correct answer: The landlord must allow the tenant to make the modification at the tenant's expense.
Under the Fair Housing Act, a housing provider must permit a person with a disability to make reasonable modifications to the premises at the tenant's expense if the modification is necessary for them to fully use and enjoy the housing. The installation of grab bars is a classic example of a reasonable modification.
Question 4: A real estate licensee is creating an advertisement for a new listing. Which of the following phrases would most likely be considered a violation of fair housing laws?
- "Spacious, four-bedroom home."
- "Located in a quiet, traditional neighborhood." (Correct answer)
- "Features a walk-in shower."
- "Close to St. Mary's Catholic Church."
Correct answer: "Located in a quiet, traditional neighborhood."
Using phrases like "traditional neighborhood" can be interpreted as indicating a preference or limitation based on protected classes, potentially discouraging diverse applicants. Advertisements should focus on the property's features, not on describing the potential neighbors or lifestyle. Referencing a specific religious landmark, while not ideal, is generally less problematic than describing the character of the neighborhood's residents.
Question 5: A listing agent receives a strong offer from a financially qualified prospective buyer who is a member of a protected class. The seller tells the agent, "I'm not comfortable with those people moving into my neighborhood. Reject the offer." Which of the following is the agent's proper course of action under Wisconsin law?
- Follow the seller's instruction as part of the duty of obedience.
- Inform the seller that their instruction is illegal and that the agent cannot comply with it. (Correct answer)
- Suggest the buyer write a personal letter to the seller to win them over.
- Quietly report the seller to HUD without informing them.
Correct answer: Inform the seller that their instruction is illegal and that the agent cannot comply with it.
Under Wisconsin Administrative Code REEB 24.03, licensees may not discriminate or be a party to any plan to discriminate. The agent's primary duty is to uphold the law. Following a discriminatory instruction from a client is a violation of fair housing laws and professional ethics. The correct action is to advise the client that the instruction is illegal and refuse to carry it out.
Question 6: A real estate firm begins an aggressive marketing campaign in a specific neighborhood. The agents suggest to homeowners that property values are likely to fall because a group home for individuals with disabilities is opening nearby, creating fear and encouraging residents to sell quickly. What is this illegal practice called?
- Blockbusting (Correct answer)
- Redlining
- Steering
- Subornation
Correct answer: Blockbusting
Blockbusting, also known as panic selling, is the illegal practice of inducing homeowners to sell their properties by making representations regarding the entry of persons of a protected class (in this case, disability) into the neighborhood.
Wisconsin Real Estate License Fair Housing and Ethics Questions and Answers 1
A licensee is working with a buyer who has young children.
The licensee focuses the property search on neighborhoods with many families and near schools, while deliberately avoiding showing properties in a quiet, nearby subdivision primarily occupied by retirees.
This is an example of what illegal practice?