Transcript Georgia Real Estate - PowerPoint - Ch 21

Chapter 21
Thomas E.
Gillett
Charles J.
Jacobus
© 2008 by South-Western, Cengage Learning
Georgia Real Estate
An Introduction to the Profession
Seventh Edition
Chapter 21
Fair Housing, ADA, Equal
Credit, and Community
Reinvestment
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Fifth Amendment
No one can have
their property taken
without court
proceedings
Expanded to include
discrimination
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Thirteenth
Amendment
Prohibits slavery
Jones v. Alfred H.
Mayer Company
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Fourteenth
Amendment
States must provide
equal protection
under the law for all
Shelley v. Kraemer
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“All citizens of the United
States shall have the
same right in every State
and Territory, as is
enjoyed by white citizens
thereof to inherit,
purchase, lease, sell,
hold, and convey real and
personal property.”
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Creates protected classes
Race
Color
Religion
National Origin
Sex (1974)
Handicap (1988)
Familial Status (1988)
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3 Ways violation can be proven
Intentional discrimination
Regulation which is discriminatory
Failure to “reasonably accommodate”
Newest Amendments (1988)
Handicapped
Familial Status
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Physical or mental
impairment which limits
one or more major life
activates
Having a record of
impairment
Being regarded as
having an impairment
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Excludes
Current illegal drug use
Threat to health, safety, &
property of others
Includes
Recovering drug addicts
HIV /Aids
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Legal custody of children under
the age of 18
Pregnant women
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1. Housing determined by HUD to be designed
specifically for the elderly.
2. Housing occupied by person age 62 or older.
3. Housing with at least 80% of units occupied by
at least one person 55 or older.
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Fines
$50,000 for first offense
$100,000 subsequent
Civil damages, potential
injunctions, attorney’s fees,
& costs
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Refusing to sell or rent to, deal with, or negotiate with any
person.
Discriminating in the terms or conditions for buying or
renting housing.
Discriminating by advertising that housing is available
only to persons of a certain race, color, religion, sex or
national origin, those who are not handicapped, or adults
only.
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Denying that housing is available for inspection, sale, or rent
when it really is available.
Denying or making different terms or conditions for home
loans by commercial lenders.
Denying to anyone the use or participation in any real estate
services, such as brokers’ organizations, multiple listing
services, or other facilities related to the selling or renting of
housing.
Steering or block-busting.
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Directing home buyers / tenants to a particular
neighborhood / units based on any of the
protected categories
Inducing panic selling in a neighborhood for
financial gain
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Single-family housing owned by a private
individual when:
Broker is used
Discriminatory advertising is used
Single family home not owned by
a private individual
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Single-family houses owned by a private
individual who:
owns more than 3 homes
in any 2 year period sells
more than 1 home where they
were not the most recent
resident.
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Multi-family dwelling of 5 or more units
Any multi-family unit dwelling if the
owner does not reside in one of the
units
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Sale or rental of a single family home owned
by a private individual who owns fewer than 3
homes if:
No broker is used
No discriminatory advertising
No more than 1 home is sold
in a 2 year period where
the owner was not the most
recent resident
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Rental of rooms or units in owner occupied
2 – 4 family dwellings where discriminatory
advertising is not used
Religious organizations
Private clubs
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File a written complaint with HUD
File court action
File complaint with the U.S.
Attorney General
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Enforcement by Private Persons
Agent's Duties
Testers
State Laws
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Commercial Property
Access requirements & prohibits
discrimination
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Prohibits discrimination in a
credit transaction based on:
Race
Color
Religion
National origin
Sex
Marital status
Age
Receipt of income
from public
assistance
programs
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Prohibited requests:
Spouse information
Marital status
Income: child support or
separate maintenance
Family intentions
Race, color, religion,
national origin
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Evaluating applications
Age
Children
Part-Time Income
Alimony & Child Support
Credit History
Immigration Residency
Sex
Martial Status
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Credit Denial
“Notice of Adverse Action”
Penalties:
Civil liability for damages
Individual: $10,000
Class Action: $500,000
or 1% of net worth
Appraisal Report
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Regulated financial institutions must
serve the needs of the community
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Key Terms
ADA
Block busting
CRA
ECOA
Familial status
Handicapped
Protected class
Steering
Tester
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