Real Estate Basics – Fair Housing

Posted by admin on May 10, 2010 under Real Estate License Basics | Be the First to Comment

Whether on the state or the federal level, fair housing laws will be covered on the state and national sections of every real estate license exam. Federal and state governments together have created laws to protect all people from any form of discrimination in housing and allowing everyone the opportunity to live where they so choose, so long as it is within their means.

Civil Rights Act of 1866
The Civil Rights Act of 1866 was the first housing statute enacted. It prohibits the discrimination based upon race in housing sales, rentals, conveyances or inheritances. The little enforced statute remained unchanged until 1962 when President Kennedy signed Executive Order 11163 which prohibited discrimination is residences financed by FHA or VA. From this point on the prohibition is enforced where federal funding is involved.

Civil Rights Act of 1968
The Fair Housing Act or Title VIII of the Civil Rights Act of 1968 expands the prohibiting of discrimination based on race to include color, religion, and national origin. Enforcement of this Act is the responsibility of the Office of Fair Housing and Equal Opportunity and they are overseen by the Department of Housing and Urban Development. The law prohibits discriminatory advertising or misrepresentation, pushing people into neighborhoods (Steering) or out of neighborhoods (Blockbusting) or refusing to provide loans in certain neighborhoods (Redlining). There are a few exemptions to this type of discrimination such as a privately owned home sold without use of a broker or discriminating advertising, rental of an apartment in a unit with no more than four units where the owner in a resident, or facilities leased non-commercially to members and owned by a private clubs or religious organizations.

Jones v. Mayer
Although there are exemptions to race discrimination in the Fair Housing Act, Jones v. Meyer in 1968 set the precedent that anyone who felt discriminated against because of their race could seek legal recourse under the Civil Rights Acts of 1866.

Equal Opportunity in Housing poster
The Department of Housing and Urban Development began to require brokers to display a standard HUD poster to show compliance with the anti-discrimination laws.

Fair Housing Amendments Act of 1988
In 1988 the Fair Housing laws were amended once again, this time to include prohibiting discrimination of the handicapped, families with children, and based on sex. There are exemptions to these amendments as well. Government designated retirement housing and retirement communities with all residents being over 62 years of age or with one resident per household at least 55 years old in at least 80% of the homes in a community with amenities for the elderly are exempt from the amendment.

Discrimination by the client
The Fair Housing law prohibiting discrimination applies to brokers as well as agents, and also extends to their clients. A licensed real estate professional that allows their client to discriminate is considered complicate and will be held liable. It is recommended that anyone with a real estate license should cease to do business with any clients who are discriminating.