Real Estate Sales Exam FREE Real Estate Sales Fair Housing and Disclosures Questions and Answers 2 — Questions and Answers
Question 1: A seller instructs their agent not to show the property to families with children. What should the agent do?
- Follow the seller's instructions as they own the property
- Refuse the instruction because it violates the Fair Housing Act's familial status protections (Correct answer)
- Only comply if the property qualifies as senior housing
- Show the property but disclose the seller's preference to buyers
Correct answer: Refuse the instruction because it violates the Fair Housing Act's familial status protections
The Fair Housing Act prohibits discrimination based on familial status, and agents must refuse discriminatory instructions from clients.
Question 2: Which of the following properties is EXEMPT from the Federal Fair Housing Act?
- A duplex where the owner lives in one unit and rents the other without using a broker (Correct answer)
- A 50-unit apartment complex managed by a property management company
- A single-family home listed with a real estate agent
- A condominium with 10 units advertised in the local newspaper
Correct answer: A duplex where the owner lives in one unit and rents the other without using a broker
The Mrs. Murphy exemption allows owner-occupied buildings with four or fewer units to be exempt, provided no broker is used and no discriminatory advertising is published.
Question 3: A buyer's agent discovers that a neighboring property was previously used as a methamphetamine lab. Is this a required disclosure?
- No, because it involves a neighboring property and not the subject property
- Yes, because it is a material fact that could affect the buyer's decision (Correct answer)
- Only if the buyer specifically asks about neighboring properties
- Only if the contamination has spread to the subject property
Correct answer: Yes, because it is a material fact that could affect the buyer's decision
Material facts that could affect a buyer's use or value of the property, including known hazardous conditions on neighboring properties, generally must be disclosed.
Question 4: Under the Fair Housing Act, which action constitutes illegal steering?
- Providing a buyer with listings only in neighborhoods matching their racial background (Correct answer)
- Showing a buyer every available listing in their price range
- Recommending a neighborhood based solely on school district quality
- Suggesting a property because it is close to the buyer's workplace
Correct answer: Providing a buyer with listings only in neighborhoods matching their racial background
Steering occurs when an agent directs buyers toward or away from neighborhoods based on protected class characteristics such as race.
Question 5: A property built in 1972 is being sold. What must the seller disclose regarding lead-based paint?
- Nothing, because the property was built after the 1960 cutoff
- The seller must provide the EPA lead hazard pamphlet and disclose any known lead-based paint (Correct answer)
- Only that lead paint may be present if the buyer requests information
- The seller only needs to disclose if lead paint has been tested and confirmed
Correct answer: The seller must provide the EPA lead hazard pamphlet and disclose any known lead-based paint
Federal law requires sellers of homes built before 1978 to provide the EPA pamphlet and disclose any known lead-based paint or hazards.
Question 6: Which scenario best illustrates blockbusting?
- An agent tells homeowners that people of a different race are moving into the area to induce panic selling (Correct answer)
- An agent refuses to provide mortgage information to a qualified buyer
- A lender charges higher interest rates in certain zip codes
- An agent advertises a property as ideal for a specific religious group
Correct answer: An agent tells homeowners that people of a different race are moving into the area to induce panic selling
Blockbusting is the illegal practice of inducing owners to sell by suggesting that a protected class is moving into the neighborhood, causing property values to decline.
Real Estate Sales Exam FREE Real Estate Sales Fair Housing and Disclosures Questions and Answers 2
A seller instructs their agent not to show the property to families with children.
What should the agent do?