chapter 3 30 hr. broker transition course

Salesperson to Broker Transition Course 30 Hrs : 

Salesperson to Broker Transition Course 30 Hrs Copyright © 2011 by Kaplan, Inc. All rights reserved. Chapter 3 Risk Management

Purpose of Risk Management: 

Purpose of Risk Management To protect, preserve, and promote the growth of the brokerage company, which will ultimately result in consumer protection © 2011 by Kaplan, Inc. Page 41

Fair Housing Laws -Purpose: 

Fair Housing Laws -Purpose Create a marketplace in which all persons of similar financial means are shown the same range of homes in the location of their choice Failure to comply with fair housing laws is both a civil and criminal violation and constitutes grounds for disciplinary action against a licensee © 2011 by Kaplan, Inc. Page 41 Remember: Fair Housing Laws can include Federal State County City Fine for 1 st Offense $16,000

Fair Housing Laws – Investgation: 

Fair Housing Laws – Investgation HUD Provides $28 Miilion in Granst to Invesatigate and to promote Fair Housing opportunities Illinois Recepiants : Oak Park Regional Housing Center (Oak Park)$125,000 John Marshall Law School (Chicago) $162,000 Interfaith Center of the Northern Suburbs (Winnetka( $225,000, South Suburban Housing Center( Homewood) $324,000 HOPE Fair Housing Center (Wheaton) $640,000 © 2011 by Kaplan, Inc. Page 41 “False Entrapment” is No Defense

Fair Housing Act: 

Fair Housing Act Prohibits discrimination on the basis of race, color, religion, sex, disability, familial status, and national origin Administered by Department of Housing and Urban Development (HUD) Requires that its posters (page 45) be displayed in any place of business where real estate is offered for sale or rent Fair Housing Act for Sellers and Agents © 2011 by Kaplan, Inc. Page 43 AGE not under Federal

Fair Housing Act Exemptions: 

Fair Housing Act Exemptions A single-family house sold or rented by the owner (No Agent and no advertising ) A dwelling owned or operated by a religious organization Lodging owned or operated by a private club as an incident to its primary purpose and not operated for a commercial purpose Housing intended for older persons ( must qualify) © 2011 by Kaplan, Inc. Page 47

Civil Right s Act of 1866 (Jones v. Mayer): 

Civil Right s Act of 1866 (Jones v. Mayer) Where race is involved, no exceptions apply © 2011 by Kaplan, Inc. Page 48 Race is never exempted from discrimiation

Illegal Housing Practices: 

Illegal Housing Practices Blockbusting ( induce to sell on threat of “change of neighborhood) Steering ( channeling home seekers to the area “ they would be most comfortable in” Redlining ( lenders discriminate on where property located. Advertisements with language indicating preference or limitation © 2011 by Kaplan, Inc. Page 48-49

Enforcement of Fair Housing Act: 

Enforcement of Fair Housing Act Complaint may be filed with HUD Investigation/conciliation Formal hearing/election Damages/penalties/injunction Possible civil action Errors and omissions insurance carried by licensees may not c over violations of the fair housing laws © 2011 by Kaplan, Inc. Page 50

Illinois Human Rights Act: 

Illinois Human Rights Act Violation of the Illinois Human Rights Act IDFPR an disciple your license Prohibits discriminatory acts against children , blind, hearing-impaired, or physically disabled, use of service animal. © 2011 by Kaplan, Inc. Page 51 Familial Status one child or more under 18 years Familial Status Protection Applies to Pregnant woman

Fair Housing Compliance Program: 

Fair Housing Compliance Program Include in P and P Manual Licensee education and training Consistent documentation Equal Service Don’t limit prospects Choices Use Fair Housing Logo Use Fair Housing Poster © 2011 by Kaplan, Inc. Page 53

Federal Antitrust Laws: 

Federal Antitrust Laws Preserve competition, discourage monopolies, and control the exercise of monopoly powers Sherman Act ( most real estate transactons) Prohibit contracts, combinations, and conspiracies in restraint of trade and can result in enforcement, prosecution, and penalties Sherman Act is enforced by the U.S. Department of Justice; Federal Trade Commission Act is enforced by the Federal Trade Commission. © 2011 by Kaplan, Inc. Page 53

Illinois Antitrust Law: 

Illinois Antitrust Law Patterned after federal legislation Individuals and brokerage companies could be subject to state sanctions © 2011 by Kaplan, Inc. Page 55

Areas of Antitrust Concern: 

Areas of Antitrust Concern Price-fixing (Set commissions only for YOUR office) Boycotts Territorial allocations © 2011 by Kaplan, Inc. Page 55

Additional Risk-Related Concerns: 

Additional Risk-Related Concerns Make proper referral to other expert service providers Avoid unauthorized practice of law Preprinted Contracts Fill in blanks © 2011 by Kaplan, Inc. Page 57

Chapter 3 Risk Management Quiz: 

Chapter 3 Risk Management Quiz © 2011 by Kaplan, Inc. Page 60