Civil Rights in Real Estate

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Questions and Answers

Which of the following is NOT a discriminatory activity prohibited by fair housing laws?

Refusing to rent to a family with children

Refusing to sell a property to a buyer because of their religion

Steering prospective buyers towards specific neighborhoods based on their race

Setting different rental rates for tenants based on their credit score (correct)

What is the primary goal of fair housing laws?

To protect the interests of real estate brokers and salespeople.

To increase the number of available homes for sale.

To regulate the prices of homes in specific neighborhoods.

To create an unbiased housing market where everyone has equal opportunity. (correct)

Which legal act was instrumental in guaranteeing equal housing opportunities for all U.S. citizens?

The Civil Rights Act of 1866 (correct)

The Equal Credit Opportunity Act of 1974

The Housing and Community Development Act of 1974

The Fair Housing Act of 1968

What is the significance of the Supreme Court decision Jones v. Alfred H Mayer Company?

It confirmed the Civil Rights Act of 1866 applies to private as well as public housing. Signup and view all the answers

What are the potential consequences for a real estate professional who violates fair housing laws?

They can lose their real estate license and potentially face criminal charges. Signup and view all the answers

How does the Civil Rights Act of 1866 differ from other fair housing laws?

It was passed before the Fair Housing Act and provides broader protection against race-based discrimination. Signup and view all the answers

Which of the following is an example of steering in real estate?

A broker showing a prospective buyer only homes in neighborhoods with predominantly similar racial demographics. Signup and view all the answers

Which of the following is NOT a protected class under fair housing laws?

Marital status Signup and view all the answers

What is the primary purpose of the Federal Fair Housing Act of 1968?

To prohibit discrimination in the sale or rental of residential property Signup and view all the answers

Which of the following is NOT a prohibited discriminatory act under the Federal Fair Housing Act?

Providing a discount to a family with children Signup and view all the answers

What is an exemption to the Federal Fair Housing Act?

The sale or rental of a single-family home by an individual who owns three or fewer such homes Signup and view all the answers

Which of the following institutions is impacted by the Federal Fair Housing Act?

Lending institutions Signup and view all the answers

What is a prohibited discriminatory act in advertising under the Federal Fair Housing Act?

Restricting the sale or rental based on race, color, religion, national origin, or sex Signup and view all the answers

What is a prohibited discriminatory act under the Federal Fair Housing Act?

Making a profit by inducing owners of housing to sell or rent because of the prospective entry into the neighborhood of persons of a particular race, color, religion, national origin, disability, or familial status Signup and view all the answers

Which of the following is NOT a type of residential property covered under the Federal Fair Housing Act?

Commercial office spaces Signup and view all the answers

What is a prohibited discriminatory act in lending under the Federal Fair Housing Act?

Denying a home loan to someone based on their race Signup and view all the answers

Study Notes

Civil Rights and Nondiscrimination in Real Estate

Brokers and salespeople must be aware of federal, state, and local laws pertaining to civil rights and nondiscrimination in housing and land sales or rentals.
These laws aim to create a single, unbiased housing market where every financially qualified homeseeker can buy any home they choose.

Civil Rights Act of 1866

Prohibits discrimination based on race and color in the sale and rental of property.
States that "all citizens of the United States shall have the same right... to inherit, purchase, lease, sell, hold, and convey real and personal property" as white citizens.
The 1968 Supreme Court decision in Jones v. Alfred H. Mayer Company affirmed that the Civil Rights Act of 1866 prohibits "all racial discrimination, private and public, in the sale and rental of property."

Federal Fair Housing Act of 1968

Prohibits discrimination on the basis of race, color, religion, national origin, sex, and (added in 1974) familial status when selling or leasing residential property.
Applies to direct providers of housing, including landlords and real estate companies, as well as municipalities, lending institutions, and homeowners insurance companies.
Covers dwellings, apartments, vacant land acquired for residential construction, and prohibits various discriminatory acts, including:
- Refusing to sell, rent, or negotiate with certain individuals.
- Changing terms, conditions, or services for different individuals.
- Making discriminatory statements or advertisements.
- Representing that a dwelling is not available when it is.
- Inducing owners to sell or rent because of prospective neighbors.
- Altering loan terms or denying loans based on prohibited characteristics.
- Denying people membership or limiting their participation in real estate organizations.

Exemptions to the Federal Fair Housing Act

The sale or rental of a single-family home is exempted if the home is owned by an individual who does not own more than three such homes at one time and does not use a broker, salesperson, or agent.

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Description

Learn about federal, state, and local laws pertaining to civil rights and nondiscrimination in housing and land sales or rentals. Understand how these laws aim to create a single, unbiased housing market.