Builders and their salespeople sell to the public, so builder exams test two federal consumer rules: fair housing and the FTC's cooling-off rule.
Fair housing
- Familial status is a protected class under the Fair Housing Act, so an ad saying "adults only, no children" violates fair housing law. Income level is not a protected class (24 CFR 100.50(b); 100.75).
- Steering is channeling buyers toward or away from neighborhoods because of a protected trait (24 CFR 100.70).
- Blockbusting is telling owners that a protected group is moving in so they should sell (24 CFR 100.85).
- States can protect more classes than federal law does. Michigan, for example, protects marital status in real estate transactions, which federal law does not (MCL 37.2502(1); 24 CFR 100.50).
The three-day cooling-off rule
- The FTC rule gives a buyer three business days to cancel a covered sale made away from the seller's place of business, and Saturday counts as a business day (16 CFR 429.0(a), (f); 429.1).
- After a valid cancellation notice, the seller must refund within 10 business days (16 CFR 429.1(g)).
Practice residential builder exam questions for your state, with explanations and timed mock exams.