Download Unit 7 - Real Estate Academy of Learning

Florida Real Estate Principles,
Practices & Law 39th Edition
Unit 7: Federal and State Laws
Pertaining to Real Estate
Civil Rights Act of 1866
• Prohibits discrimination based on race in all
real estate transactions
• No exceptions
• Jones v. Mayer Supreme Court decision
Civil Rights Act of 1964
• Ended racial segregation in schools,
workplaces and public accommodations
• Prohibits discrimination based on race, color,
religion, or national origin in
– Public accommodations
• Hotels, restaurants, gas stations, places of
entertainment
– Public facilities: government-run facilities
Civil Rights Act of 1968: Fair Housing
Act
• Title VIII of Civil Rights Act of 1968
– Discrimination is illegal in sales, leasing, advertising
sales or rentals, financing, or brokerage services if
based on
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Race
Color
Religion
Sex
National origin
– 1988 amendment added
• Handicap (mental or physical)
• Familial status
Familial and Handicap Status
• Familial status
– Families with children under 18 and pregnant
women
• Handicap status
– Any physical or mental impairment that
interferes with normal life functioning
Memory Tool: FRSH CRN (Fresh Corn)
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Familial status
Race
Sex
Handicap status
• Color
• Religion
• National origin
No Protection Under Fair Housing Act
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•
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Age
Occupation
Marital status
Sexual orientation
State or local laws may add additional
protected classes
Fair Housing Poster
• Pledges adherence to the Fair Housing Act
• Displayed at real estate brokerage offices,
mortgage lender offices
• Available free from HUD
• Failure to display poster may be used as
evidence of discrimination in a complaint
Fair Housing Act Covers
• Single-family housing
– Government owned housing
– Privately owned if licensee employed to sell or
rent the property
– Property owned by person who owns four or
more residential units
– Owner, during past 2-year period, sells two or
more houses (not owner-occupied)
Fair Housing Act Covers:
• Multifamily housing
– Five or more units
– Four or fewer units (not owner-occupied)
Housing for Older Persons
• Exempt from the familial status protection
provided
– All units are occupied by persons 62 or older;
or
– At least 80% of the units are occupied by one
or more persons 55 or older
Transactions Exempted Under the Act
• Exemptions apply under two conditions
– A real estate licensee is not involved
– No discriminatory advertising
Exempt Transactions
• Seller owns three or fewer single-family dwellings
• Seller was not living in the house and was not
most recent resident when property was sold or
rented (One exempt sale in 24-month period)
• Rentals in multifamily dwellings with four or
fewer family units and owner lives in one of the
units
• If racial discrimination, Civil Rights Act of 1866
applies
Special Exemptions
• Housing operated by religious organizations
and private clubs not operated for commercial
purposes
– Religious organizations may restrict units to
members of their religion provided they do not
discriminate in accepting membership
– Private clubs may restrict units to its members
Prohibited Activities
• Steering
– Channeling homeseekers to or away from
neighborhoods
• Blockbusting
– Using entry or rumor of entry of a protected class
to urge owners to sell
• Redlining
– Denying loans or insurance coverage or different
terms and conditions for homes in certain
neighborhoods
Prohibited Activities
• Refuse to rent to, sell to, negotiate with, or deal with a
member of a protected class
• Quote different terms, conditions, or privileges for
buying or renting
• Advertise housing is available only to people of a
certain race, color, sex, religion, national origin,
handicap status, or familial status
• Deny membership or use of any real estate service
• Make false statements concerning availability of
housing for inspection, rent, or sale
Enforcement of the Fair Housing Act
• Complaints filed with HUD under the Fair
Housing Act
– One year time limit
• Action taken by the Department of Justice
• Civil suits filed in Federal District Court
• Responsibility and liability of real estate
licensees
Florida Fair Housing Act
• Same 7 protected classes as federal law
• Prohibits
– Refuse to rent or sell housing
– Falsely deny that housing is available for inspection,
rental, or sale
– Refuse to make a mortgage loan
– Impose different conditions or terms on a loan
– Threaten, coerce, or intimidate any individual
exercising a fair housing right
– Refuse reasonable changes to a dwelling to
accommodate a disability
Americans With Disabilities Act (ADA)
• Protects employment and accessibility rights of
individuals with mental and physical disabilities
• Disabled cannot be denied access to public
transportations, public accommodations, and
commercial facilities
• Includes real estate brokerage offices even if located in
a private residence
– Modifications may be required if readily achievable
• Florida Americans With Disabilities Implementation Act
Interstate Land Sales Full Disclosure
Act (ILSA)
• Federal law that regulates sale or lease of land
• Administered by Consumer Financial
Protection Bureau (CFPB)
• Certain developers must register
developments and disclose to prospects facts
regarding the real estate
Two Components
• Registration requirement
– Developers must register subdivisions of 100 or
more lots with Bureau of Consumer Financial
Protection
• Property report
– Developers of 25 or more lots must provide
purchaser with a property report disclosure
before signing contract
– May cancel within 7 days
– Buyers who did not receive report prior to signing
contract may cancel within 2 years
Residential Landlord and Tenant Act
• Place landlords and tenants on equitable legal
basis
• Applies to rental of dwelling units
– Not transient facilities
– Not renting of mobile home lots
– Not commercial leases
Deposits and Advance Rents
• Landlord must account for deposits and advance
rents
– Hold money in a separate noninterest-bearing
Florida bank account for the benefit of tenant
– Hold money in a separate interest-bearing Florida
bank account and pay the tenant at least 75%
interest or 5% per year simple interest
– Post a bond for amount of security deposits and
advance rents or $50,000 (whichever is less) and
pay tenant 5% per year simple interest
Deposits and Advance Rents
• Landlord must provide written notice to
tenant within 30 days of collecting deposit
Broker Property Management
• If a broker holds the funds on behalf of the
landlord, broker must abide by license law
regarding escrow funds
• Deposits and advance rents are trust funds that
must be deposited into the broker’s escrow
• Best to open a separate escrow for property
management but not required
• $5,000 broker’s funds to maintain the account
• Sales associates must deliver rent and rental
deposits to broker by end of next business day
Obligations to Maintain Premises
• Landlord
– Meets health and building codes
– Working heat and running hot water
– Insect extermination, garbage receptacles and
pickup
– Working smoke detectors
• Tenant
– Meets health and building codes
– Use reasonable care in operation of equipment
– Not disturb peace of others
Landlord’s Access to Premises
• Tenant must allow landlord to enter property
to make inspections, provide services, make
repairs, and to show property
• Landlord may enter property at any time in
case of emergency
• Otherwise, obligated to give tenant
reasonable notice (at least 12 hours)
Vacating Premises
• When landlord is holding a security deposit
– Return to tenant within 15 days if no claim is to be
made
– Send written notice by certified mail within 30
days if claim is made
– Tenant allowed 15 days to respond to landlord’s
written claim
– Disputes handled in civil court
• Exception to conflicting demand rules if broker is
holding security deposit
Termination of Rental Agreement by
Tenant
• 7-day written notice
• Rent may be reduced by a court if tenant
desires to remain on premises
• Notice delivered
– Personally
– Mailed
Termination of Rental Agreement by
Landlord
• 7-day written notice
• 3-business-day written notice for nonpayment of rent
• Notice delivered
– Personally
– Mailed
– Posted on door
Eviction Requirements
• Notify tenant in writing (3-business-day or 7-day)
• After time period is up, file complaint for eviction
• Tenant has 5 business days to respond to
complaint
• If tenant continues to occupy without
responding, obtain final judgment from court
• Post 24-hour notice
• Sheriff signs writ of possession