Chapter 9 Company Policies

Introduction Company policies provide guidelines regarding how a licensee should handle day to day situations that an result in liability to both the brokerage company and the licensee. The Purpose of company Policy an Procedures it to protect, preserve and promote the growth of he brokerage company which ultimate benefits all including he public. Page 173

Fair Housing Policies The purpose of fair housing laws is to promote Choice in eh market place All real estate licensees must avoid violating faire housing laws. Federal State or local Civil and Criminal Penalties can be levied Page 173

Fair Housing Policies (cont.) Risk Reduction Tips Policy Procedure Manual Reference Office Education and Training Fair Housing Logo Fair Housing Poster ( Fig 9.2) Equal Service to All Guilty Until Proven Innocent Page 174

Fair Housing Laws Race, Color, Religion, Sex, National Origin, Familial Status, Disability (Really Cool Realtors Should Never Freaking Discriminate) Federal State adds Sexual Orientation, Order of Protection, Marital Status, Age, Military Status, and Ancestry. (S.O., M.A.M.A) State All these PLUS other classes County and City Page 175

Fair Housing Housing- 1-4 Residential units Family Status – One or more parents ( guardians) with one or more children under 18 Disability- A mental or physical impairment This includes some commercial property Includes Pregnant woman Persons with AIDS Protected Substance Abusers if in a recovery program Page 177

Disability Considerations Landlord Must make Reasonable Accommodation at their expense Disabled tenants an make modification at their expense but must return to its previously condition Cant increase Security deposit but can create an escrow account Page 177

Exceptions to Acts Single Family House Owner Never RACE Owner Occupied less than 4 units Single Family House Owner Private Clubs or Religious Organization for just their member Housing for eh elderly( all over 62 or 80% over 55) Cant Advertise or use a Licensee Page 177

Jones vs. Meyer Single Family House Owner Up Held the Civil Rights act of 1866 Single Family House Owner Covers all racial discrimination not just single family homes Page 177

Blockbusting Steering Redlining Don’t Limit “Choice” Illegal practice of encouraging people to sell because of racial “Change” in eh neighborhood) Steering Don’t Limit “Choice” Illegal practice of channeling home sellers to particular neighborhoods based on their “class” Redlining Illegal practice of not making loans based on eh location of a property” Page 179

Advertising Language should not indicate and preference or limitation Use the Fair Housing Logo an “ we do business in accordance with the Federal Fair Housing Laws Use a Variety of Media Page 180

Target Marketing 2. HUD Advertising Guidelines ( Fig 9.4) 1. Ok but don’t base marketing solely on your target markets membership in a any protected class. 2. HUD Advertising Guidelines ( Fig 9.4) Page 181

Enforcement Civil Action Federal Housing Acts HUD ( Secretary of Fair Housing and equal Opportunity) One year to file a complaint Determination ( 100 days) Conciliation ( respondent agrees to remedy the problem) Formal Charge(leads to A formal Hearing) Either Election or ALJ $16,000 1st offense and $65,000 for third Civil . Civil Action Two Years Unlimited Punitive in addition to damages and Injunction Page 182

Enforcement State Illinois Human Rights Act Includes Real Estate License Act Human Rights Commission) Civil Right Violations (page 182-3) . Lose License Page 182-183

Fair Housing Compliance Program Should Include Inclusion on P&P Manual Education and Training Documentation Supervise activities and Correct . Copy and Sign Keep Certificates Page 182-183

Antitrust Sherman Anti trust Act Price Fixing Group Boycotts Allocation of Territories Tying Contracts Real Estate Related Violations Enforced by US Dept of Justice Treble Damages for Violators Page 184

Antitrust Illinois Antitrust Act Same prohibitions as contained in Federal Acts Can Step in if Fed doesn’t Page 185

Antitrust Illinois Antitrust Act Same prohibitions as contained in Federal Acts Can Step in if Fed doesn’t Page 185

Antitrust Guidelines Don't Discuss your Business with Competitors Written Communications be careful what you write and to whom Don’t discuss your companies business with anyone. Red Flags Watch your language When in doubt talk ot you legal counsel or managing broker Put this in your P&P Manual Page 186

Title VII of Civila Rights Act Sexual Harassment Title VII of Civila Rights Act EEOC Enforces “unwelcome sexual Advances, requests for sexual favors. And other verbal or physical conduct of a sexual nature..when the conduct explicitly or implicitly affects an individuals employment unreasonably interferes with an individuals work performance or ct=creates an intimiating, hostdile of r offensicve work enviornment”. The “victim” can be anyone affected by the conduct Page 187

Sexual Harassment What to do Victims' should address the harassers directly that the conduct is unwelcome and must stop Report per company P&P Manual Seek Legal Counsel on exact language Page 188

Unauthorized Practice of Law Quinlan and Tyson vs. Chicago Bar Ass. Et Al. What you can do Fill In Blanks on Pre-printed Contracts Strike Out terms not applicable Add “riders” preprinted Use contracts that are “customary in your area if possible Page 188

Unauthorized Practice of Law What you can not do. Advise on legal significance of terms No “fill in later” Parties Initial changes and get copies in 24 hrs Cabot prepare Deeds, bill of sale not mortgage, title report Use contracts that are “customary in your area if possible Page 189

Referrals to Service Providers What you might do. Identify the Experts Provide a list to clients Offer Home warranty if available Controlled Business Entities Page 193 Page 189

RESPA Purpose Federal Act that requires certain disclosures b made about the mortgage and settlement process and prohibits kickbacks and referral fees. Applies to those transactions found on Page 189-190 Page 189

RESPA Prohibits (page 190) Section 8 Section 9 Section 10. Page 189

Requirements( lenders) and settlement agents RESPA Requirements( lenders) and settlement agents HUD Booklet GFE Mortgage Servicing Disclosure HUD-! Closing statement. Page 190-191

RESPA Closing Statements Is the accounting of the parties debits and credits. Purpose: Determines what $$$ the Buyer need to bring to closing and How much $$ the Seller gets Page 192-193

P&P Should Give Guidance Agency Disclosure P&P Should Give Guidance What Types of Agency ( Page 194) What about working with Customers? . You represent the client unless , in writing you tell them you aren't Page 194

Chapter 8 Dispute Resolution review Quiz