Real Estate Sales Exam Fair Housing and Disclosures 2 — Questions and Answers
Question 1: A landlord refuses to rent to a couple because they have two young children. This is an example of discrimination based on:
- Race
- Familial status (Correct answer)
- National origin
- Religion
Correct answer: Familial status
Familial status is a protected class under the Fair Housing Act, covering households with children under 18.
Question 2: Which of the following properties is generally exempt from the Fair Housing Act's prohibition on sex discrimination?
- A single-family home sold through an agent
- A 50-unit apartment complex
- A rooming house where the owner occupies the premises and rents no more than four rooms (Correct answer)
- A condominium complex with 100 units
Correct answer: A rooming house where the owner occupies the premises and rents no more than four rooms
The Mrs. Murphy exemption allows owner-occupied buildings with four or fewer units to be exempt from certain Fair Housing Act provisions.
Question 3: Under the Americans with Disabilities Act (ADA), which of the following must provide accessible facilities?
- Private residences
- Commercial facilities open to the public (Correct answer)
- Single-family homes for sale
- Owner-occupied duplexes
Correct answer: Commercial facilities open to the public
The ADA requires places of public accommodation and commercial facilities to be accessible to people with disabilities.
Question 4: A seller asks an agent to only show the property to buyers of a specific ethnic background. The agent should:
- Comply if the seller has a valid reason
- Refuse and explain that steering violates fair housing laws (Correct answer)
- Comply to maintain the client relationship
- Ask the broker for guidance before deciding
Correct answer: Refuse and explain that steering violates fair housing laws
An agent must refuse discriminatory instructions from sellers as compliance would violate the Fair Housing Act.
Question 5: Which federal law requires lenders to disclose the annual percentage rate (APR) to borrowers?
- RESPA
- Truth in Lending Act (TILA) (Correct answer)
- Fair Housing Act
- Equal Credit Opportunity Act
Correct answer: Truth in Lending Act (TILA)
TILA (Regulation Z) requires lenders to clearly disclose the APR and total loan costs to borrowers.
Question 6: An agent who only shows minority buyers homes in certain neighborhoods and white buyers homes in other neighborhoods is engaging in:
- Blockbusting
- Redlining
- Steering (Correct answer)
- Puffing
Correct answer: Steering
Steering is the illegal practice of directing buyers toward or away from neighborhoods based on protected characteristics.
Question 7: Under the Fair Housing Act, a landlord may lawfully ask a disabled tenant to:
- Provide proof of disability from a doctor before allowing any accommodation
- Pay a pet deposit for a service animal
- Restore the unit to its original condition at move-out if reasonable modifications were made at the tenant's expense (Correct answer)
- Sign a waiver of their right to reasonable accommodations
Correct answer: Restore the unit to its original condition at move-out if reasonable modifications were made at the tenant's expense
Landlords can require tenants who make modifications to restore the unit to its original condition at move-out, but cannot charge extra deposits for service animals.
Real Estate Sales Exam Fair Housing and Disclosures 2
A landlord refuses to rent to a couple because they have two young children.
This is an example of discrimination based on: