1. Chapter 9 Company Policies

2. 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

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

15. 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

16. 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

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

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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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
Page 189

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

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

28. 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
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29. 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

30. Chapter 8 Dispute Resolution review Quiz