California Real Estate Practice Exam

Involving the sale of a property, which of the following would be exempt from the "discrimination and unlawful acts" of the Health and Safety Code?

1. Duplex financed by VA loan

2. Single family, owner-occupied residence financed by FHA

3. Single family, owner-occupied residence unencumbered

4. Twenty unit apartment financed by a conventional loan

The correct answer is: Duplex financed by VA loan

The correct option relates to the nuances of the Health and Safety Code regarding discrimination and unlawful acts in the sale or rental of properties. In California, there are specific exemptions outlined for certain types of housing, particularly those involving veteran affairs. Duplexes financed by a VA loan are exempt from some discriminatory practices due to the nature of the financing program which is designed to assist veterans in securing housing. This exemption allows properties financed through a VA loan to be treated differently concerning certain regulations and potential discrimination issues. While other properties, such as single-family residences financed by FHA loans or those that are unencumbered, may have their own regulatory frameworks, they do not have the same level of exemption under the Health and Safety Code as those involved with VA financing. The twenty-unit apartment financed typically involves commercial aspects where different discrimination rules apply, further distinguishing its treatment under the law.