Legal Environment of Brokerage
Other State and Local Regulations
Implied warranty of habitability
Civil Rights Acts of 1866 and 1968
Credit and lending
Land sales laws
Civil Rights Issues
Civil Rights Act of 1866--Prohibits discrimination based upon race.
Fair Housing Act of the Civil Rights Act of 1968 prohibits discrimination of protected classes
Protected Classes Include:
Familial status (including age)
I expect that sexual preference will soon be added.
Sex discrimination may be allowed in the case of single-sex dormitories or rooming houses.
Religious discrimination may be allowed in properties owned by the religious institution.
Private clubs can restrict rentals to members provided membership is not discriminatory.
Age discrimination against children allowed in multifamily units restricted for occupancy by the elderly (55+) provided that significant facilities and services are provided specifically for the elderly and that 80% of the occupants must be 55+.
Fair Housing Law Issues
Pennsylvania's Human Relations Act
Includes an additional protected category of age (40+)
Protection of guide animals
Credit and Lending Laws
Regulation Z: Truth in Lending Act of 1969
Equal Credit Opportunity Act
Good faith closing cost estimate
Uniform Settlement Statement
Prohibition against kickbacks
Interstate Land Sales Full Disclosure Act of 1968
Sales of properties where large number of buyers are out-of-state
Requires deliver of HUD Report that includes disclosure of specific questions and answers specified by HUD.
Contracts for Sale
Role of contracts
Specify duties, rights, obligations of parties
Provide remedies in case of default
Specify timing of events
Statute of frauds
Elements of Valid Contract Offer and Acceptance
Termination of offer
Lapse of time
Reality of Consent (Mutual Assent): Meeting of the Minds
Elements of Valid Contract Competent Parties
Voidable upon majority
May contract for necessities but need only pay for "fair market value"
Diminished mental capacity
Insane: voidable if not adjudicating or if no undue harm; voidable if notice through actions
Duress, undue influence
Other Elements of a Valid Contract
Good and valuable
Love and affection
Written and signed
Adequate legal description
Binder - obligates both parties to complete negotiation of a contract
Letter of intent - Obligates parties to serious negotiation
Right of first refusal