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Modern Real Estate Practice in Texas, 16th Edition
Chapter 6 Answer Key
1. b
2. a
3. d
4. c
5. c
6. b
7. a
Refusing to sell a home to a minority individual because of poor credit would
not be considered in violation of the Act. Discrimination on the basis of ability
to pay is legal.
Although assorted administrative and litigation avenues are available for other
fair housing complaints, complaints brought under the Civil Rights Act of 1866
must be taken directly to a federal court.
Housing for older persons is exempt if it is occupied solely by persons 62 and
older.
Sex (gender) was added as a protected class by the Housing and Community
Development Act of 1974. The federal Fair Housing Act provides for
exemptions (except for race or when a real estate licensee is involved in the
transaction) to owner-occupied one-to-four family units; lodging in private
clubs; and dwelling units owned by religious organizations.
Blockbusting (sometimes referred to as panic peddling) involves inducing
homeowners to sell by representing that a change may occur in the
neighborhood with respect to race, sex, religion, color, handicap, familial status,
or national origin resulting in the lowering of property values.
If a property owner requires that an agent discriminate in the sale of the
property, the agent must refuse to accept the listing. A licensee is not required to
obey unlawful or unethical instructions of the client.
In its ruling on Jones v. Mayer, the U.S. Supreme Court affirmed that the Civil
Rights Act of 1866 “prohibits all racial discrimination, private or public, in the
8. d
9. c
10. b
11. c
12. d
13. a
14. c
15. c
sale and rental of property.”
The 1866 law prohibits all racial discrimination without exception.
Steering is the channeling or directing of home seekers to particular areas on
the basis of race, religion, country of origin, or other protected class.
Prior to the Home Mortgage Disclosure Act some lenders limited the scope of
their home loans to favored areas, a practice known as redlining.
Discrimination complaints are investigated by the Texas Workforce
Commission Civil Rights Division.
The federal Fair Housing Act of 1968 provides for certain exemptions including
owner-occupied one-to-four family units.
The Home Mortgage Disclosure Act requires lenders with federally related
loans to prove they are meeting the lending needs of the geographic area they
serve. To do so, lenders maintain data regarding the number of loans applied for
and loans made in different parts of their service areas.
The ECOA prohibits lenders and others who grant or arrange credit to
consumers from discriminating against credit applicants on the basis of race,
color, religion, national origin, sex, marital status, or dependence on public
assistance.
The Community Reinvestment Act (CRA) requires that lenders serve their
local communities first.
©2014 Kaplan, Inc.
Modern Real Estate Practice in Texas, 16th Edition
16. a
17. b
18. c.
19.
20.
21.
22.
The 1988 amendment to the federal Fair Housing Act of 1968 added persons
with a handicap or disability and persons having “familial status” to the list of
unlawful discriminations.
Steering occurs whenever home seekers are channeled to a particular area on
the basis of race, religion, country of origin, or other protected class regardless
of the licensee’s intent.
Plessy v. Ferguson is the U.S. Supreme Court case that established the
“separate but equal” doctrine with respect to public school accommodations. It
has since been overturned.
c.
Sex was added as a protected class by the 1974 Housing and Community
Development Act.
d. The definition of the term handicap does not include current illegal drug users.
It does encompass former drug addicts, alcoholics and persons who test
positive for HIV infection.
d.
The 1995 HUD memorandum on advertising does not prohibit using the terms
bachelor apartment and master bedroom.
d. The key to composing advertising that complies with the Fair Housing Act is
to describe the property.
©2014 Kaplan, Inc.