CCS Real Estate Law & Regulations 2 — Questions and Answers
Question 1: Under the Interstate Land Sales Full Disclosure Act (ILSFDA), how many lots must a subdivision have before federal registration is typically required?
- 25 or more lots
- 50 or more lots (Correct answer)
- 100 or more lots
- 200 or more lots
Correct answer: 50 or more lots
ILSFDA generally applies to developers selling or leasing 50 or more lots in a subdivision across state lines.
Question 2: A condominium unit owner wants to make structural modifications to their unit. Under typical state condominium statutes, whose approval is required?
- Only the unit owner's mortgage lender
- The condominium association or board of directors (Correct answer)
- The local zoning board exclusively
- No approval is required for interior modifications
Correct answer: The condominium association or board of directors
Structural modifications that may affect common elements or structural integrity typically require association or board approval under most state condo statutes.
Question 3: Which federal law prohibits discrimination in the sale or rental of housing based on race, color, national origin, religion, sex, familial status, or disability?
- The Civil Rights Act of 1866
- The Fair Housing Act of 1968 (Correct answer)
- The Equal Credit Opportunity Act
- The Community Reinvestment Act
Correct answer: The Fair Housing Act of 1968
The Fair Housing Act of 1968 (Title VIII of the Civil Rights Act) prohibits housing discrimination based on seven protected classes.
Question 4: In a condominium conversion, what document must typically be provided to existing tenants first, giving them the right to purchase their unit before it is offered to the general public?
- A right of first refusal notice (Correct answer)
- A tenant estoppel certificate
- A conversion plan disclosure
- A notice of intent to convert
Correct answer: A right of first refusal notice
Many state laws require landlords converting rentals to condominiums to give existing tenants a right of first refusal to purchase their unit.
Question 5: What is the legal term for the body of law that governs the rights and duties of condominium owners and associations, typically codified by each state?
- Uniform Commercial Code
- Condominium Act or Horizontal Property Act (Correct answer)
- Real Property and Conveyancing Act
- Common Interest Ownership Act
Correct answer: Condominium Act or Horizontal Property Act
States have enacted Condominium Acts (sometimes called Horizontal Property Acts) that set the statutory framework for condo governance.
Question 6: A condo association's declaration contains a provision restricting pet ownership. A new owner moves in with a service animal. Under the ADA and Fair Housing Act, this restriction:
- Fully applies — the association can enforce the no-pet rule
- Does not apply — the owner must be granted a reasonable accommodation (Correct answer)
- Applies only if the restriction predates the Fair Housing Act amendments
- Applies unless the owner obtains a variance from the local municipality
Correct answer: Does not apply — the owner must be granted a reasonable accommodation
Fair Housing Act and ADA require associations to grant reasonable accommodations for assistance animals, superseding no-pet rules.
Question 7: Under the Uniform Condominium Act, what is the maximum period a developer may retain control of the association after the first unit is conveyed to a purchaser?
- 1 year
- 2 years
- 3 years (Correct answer)
- 5 years
Correct answer: 3 years
The Uniform Condominium Act limits developer control to no more than 3 years after the first unit sale or until 75% of units are sold, whichever is earlier.
CCS Real Estate Law & Regulations 2
Under the Interstate Land Sales Full Disclosure Act (ILSFDA), how many lots must a subdivision have before federal registration is typically required?