Florida Real Estate Principles, Practices & Law 39th Edition Unit 7: Federal and State Laws Pertaining to Real Estate

Civil Rights Act of 1866 Prohibits discrimination based on race in all real estate transactions No exceptions Jones v. Mayer Supreme Court decision

Civil Rights Act of 1964 Ended racial segregation in schools, workplaces and public accommodations Prohibits discrimination based on race, color, religion, or national origin in Public accommodations Hotels, restaurants, gas stations, places of entertainment Public facilities: government-run facilities

Civil Rights Act of 1968: Fair Housing Act Title VIII of Civil Rights Act of 1968 Discrimination is illegal in sales, leasing, advertising sales or rentals, financing, or brokerage services if based on Race Color Religion Sex National origin 1988 amendment added Handicap (mental or physical) Familial status

Familial and Handicap Status Familial status Families with children under 18 and pregnant women Handicap status Any physical or mental impairment that interferes with normal life functioning

Memory Tool: FRSH CRN (Fresh Corn) Familial status Race Sex Handicap status Color Religion National origin

No Protection Under Fair Housing Act Age Occupation Marital status Sexual orientation State or local laws may add additional protected classes

Fair Housing Poster Pledges adherence to the Fair Housing Act Displayed at real estate brokerage offices, mortgage lender offices Available free from HUD Failure to display poster may be used as evidence of discrimination in a complaint

Fair Housing Act Covers Single-family housing Government owned housing Privately owned if licensee employed to sell or rent the property Property owned by person who owns four or more residential units Owner, during past 2-year period, sells two or more houses (not owner-occupied)

Fair Housing Act Covers: Multifamily housing Five or more units Four or fewer units (not owner-occupied)

Housing for Older Persons Exempt from the familial status protection provided All units are occupied by persons 62 or older; or At least 80% of the units are occupied by one or more persons 55 or older

Transactions Exempted Under the Act Exemptions apply under two conditions A real estate licensee is not involved No discriminatory advertising

Exempt Transactions Seller owns three or fewer single-family dwellings Seller was not living in the house and was not most recent resident when property was sold or rented (One exempt sale in 24-month period) Rentals in multifamily dwellings with four or fewer family units and owner lives in one of the units If racial discrimination, Civil Rights Act of 1866 applies

Special Exemptions Housing operated by religious organizations and private clubs not operated for commercial purposes Religious organizations may restrict units to members of their religion provided they do not discriminate in accepting membership Private clubs may restrict units to its members

Prohibited Activities Steering Channeling homeseekers to or away from neighborhoods Blockbusting Using entry or rumor of entry of a protected class to urge owners to sell Redlining Denying loans or insurance coverage or different terms and conditions for homes in certain neighborhoods

Prohibited Activities Refuse to rent to, sell to, negotiate with, or deal with a member of a protected class Quote different terms, conditions, or privileges for buying or renting Advertise housing is available only to people of a certain race, color, sex, religion, national origin, handicap status, or familial status Deny membership or use of any real estate service Make false statements concerning availability of housing for inspection, rent, or sale

Enforcement of the Fair Housing Act Complaints filed with HUD under the Fair Housing Act One year time limit Action taken by the Department of Justice Civil suits filed in Federal District Court Responsibility and liability of real estate licensees

Florida Fair Housing Act Same 7 protected classes as federal law Prohibits Refuse to rent or sell housing Falsely deny that housing is available for inspection, rental, or sale Refuse to make a mortgage loan Impose different conditions or terms on a loan Threaten, coerce, or intimidate any individual exercising a fair housing right Refuse reasonable changes to a dwelling to accommodate a disability

Americans With Disabilities Act (ADA) Protects employment and accessibility rights of individuals with mental and physical disabilities Disabled cannot be denied access to public transportations, public accommodations, and commercial facilities Includes real estate brokerage offices even if located in a private residence Modifications may be required if readily achievable Florida Americans With Disabilities Implementation Act

Interstate Land Sales Full Disclosure Act (ILSA) Federal law that regulates sale or lease of land Administered by Consumer Financial Protection Bureau (CFPB) Certain developers must register developments and disclose to prospects facts regarding the real estate

Two Components Registration requirement Property report Developers must register subdivisions of 100 or more lots with Bureau of Consumer Financial Protection Property report Developers of 25 or more lots must provide purchaser with a property report disclosure before signing contract May cancel within 7 days Buyers who did not receive report prior to signing contract may cancel within 2 years

Residential Landlord and Tenant Act Place landlords and tenants on equitable legal basis Applies to rental of dwelling units Not transient facilities Not renting of mobile home lots Not commercial leases

Deposits and Advance Rents Landlord must account for deposits and advance rents Hold money in a separate noninterest-bearing Florida bank account for the benefit of tenant Hold money in a separate interest-bearing Florida bank account and pay the tenant at least 75% interest or 5% per year simple interest Post a bond for amount of security deposits and advance rents or $50,000 (whichever is less) and pay tenant 5% per year simple interest

Deposits and Advance Rents Landlord must provide written notice to tenant within 30 days of collecting deposit

Broker Property Management If a broker holds the funds on behalf of the landlord, broker must abide by license law regarding escrow funds Deposits and advance rents are trust funds that must be deposited into the broker’s escrow Best to open a separate escrow for property management but not required $5,000 broker’s funds to maintain the account Sales associates must deliver rent and rental deposits to broker by end of next business day

Obligations to Maintain Premises Landlord Meets health and building codes Working heat and running hot water Insect extermination, garbage receptacles and pickup Working smoke detectors Tenant Use reasonable care in operation of equipment Not disturb peace of others

Landlord’s Access to Premises Tenant must allow landlord to enter property to make inspections, provide services, make repairs, and to show property Landlord may enter property at any time in case of emergency Otherwise, obligated to give tenant reasonable notice (at least 12 hours)

Vacating Premises When landlord is holding a security deposit Return to tenant within 15 days if no claim is to be made Send written notice by certified mail within 30 days if claim is made Tenant allowed 15 days to respond to landlord’s written claim Disputes handled in civil court Exception to conflicting demand rules if broker is holding security deposit

Termination of Rental Agreement by Tenant 7-day written notice Rent may be reduced by a court if tenant desires to remain on premises Notice delivered Personally Mailed

Termination of Rental Agreement by Landlord 7-day written notice 3-business-day written notice for non-payment of rent Notice delivered Personally Mailed Posted on door

Eviction Requirements Notify tenant in writing (3-business-day or 7-day) After time period is up, file complaint for eviction Tenant has 5 business days to respond to complaint If tenant continues to occupy without responding, obtain final judgment from court Post 24-hour notice Sheriff signs writ of possession