California Real Estate Salesperson Exam Practice – Quesiton 36

Concepts Definitions

Restrictive Covenant: An agreement or promise, often found in a deed, that limits or restricts the use of real property. While some private restrictions can be valid, those based on discriminatory factors are not.

Racial Discrimination: The act of treating individuals unequally or denying them rights based on their race. In real estate, this is illegal.

Fair Housing Act (Title VIII of the Civil Rights Act of 1968): A federal law prohibiting discrimination in housing transactions (sale, rental, financing) on the basis of race, color, religion, sex, national origin, disability, or familial status.

Shelley v. Kraemer (1948): A landmark Supreme Court case that declared racially restrictive covenants unenforceable by state courts, as such enforcement would violate the Equal Protection Clause of the Fourteenth Amendment.

Fourteenth Amendment: A constitutional amendment that guarantees equal protection under the law for all citizens, prohibiting states from enacting or enforcing laws that discriminate.

Unenforceable: A term describing a contract or a clause within a contract that cannot be legally upheld or put into effect by a court of law due to its illegality.

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