Real Estate Salesperson Exam (National Portion): Fair Housing Concepts
Importance ★★★★★ · 30% (estimate)
Overview
This chapter covers federal fair housing law, which applies in every state. Questions usually describe a situation and ask which illegal practice it shows or which class is protected.
The federal Fair Housing Act protects seven classes: race, color, religion, sex, national origin, disability, and familial status, meaning households with children under 18 and pregnant women. Sexual orientation and gender identity are not listed in the federal Act, but many states and cities protect them under their own laws. The Civil Rights Act of 1866 bars all racial discrimination in property, with no exceptions.
Steering guides buyers toward or away from areas because of a protected class. Blockbusting urges owners to sell by saying people of a protected class are moving in. Redlining refuses loans or insurance in an area because of who lives there. Ads must describe the property, not the kind of buyer wanted. Landlords must allow reasonable modifications, usually at the tenant's cost, and reasonable accommodations in rules for people with disabilities. A complaint may be filed with HUD within one year.
Key concepts
Protected classes
Race, color, religion, sex, national origin, disability, and familial status under the federal Fair Housing Act.
Memory tipSeven federal classes
Source: Fair Housing Act (42 U.S.C. 3604) · as of 2026
Steering
Directing buyers toward or away from neighborhoods because of a protected class.
Memory tipDone by licensees
Blockbusting
Urging owners to sell by claiming people of a protected class are moving in.
Memory tipPanic peddling
Redlining
Refusing loans or insurance in an area because of the protected class of its residents.
Memory tipDone by lenders and insurers
Reasonable modification
A physical change to a unit that a tenant with a disability may make, usually at the tenant's expense.
Memory tipGrab bars, ramps
Civil Rights Act of 1866
A federal law barring all racial discrimination in property transactions, with no exceptions.
Memory tipRace, no exceptions
Often tested
- "No kids" in an ad shows a familial status preference.
- A HUD complaint must be filed within one year.
- Marital status is not a federal Fair Housing Act class.
3 sample questions
Verified practice questions from this unit.
Question 1. A salesperson shows buyers homes only in neighborhoods where most residents share the buyers' race. This illegal practice is:
- ① Puffing
- ② Blockbusting
- ③ Steering
- ④ Redlining
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Answer: ③ Steering
Key point: Guiding buyers by protected class = steering
Steering is directing buyers toward or away from areas based on a protected class. It is illegal even if the buyer does not complain.
Wrong choices
- Blockbusting: Blockbusting is urging owners to sell by saying people of a protected class are moving in.
- Redlining: Redlining is refusing loans or insurance in certain areas.
- Puffing: Puffing is exaggerated sales talk.
Question 2. Which of the following is a protected class under the federal Fair Housing Act?
- ① Income level
- ② Familial status
- ③ Marital status
- ④ Occupation
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Answer: ② Familial status
Key point: Fair Housing Act: 7 federal protected classes
The federal Fair Housing Act protects seven classes: race, color, religion, sex, national origin, disability (handicap), and familial status (households with children under 18 and pregnant women). Sexual orientation and gender identity are not listed in the federal Act, but many states and cities protect them under their own laws.
Wrong choices
- Occupation: Occupation is not a federal protected class.
- Income level: Income level is not a federal protected class.
- Marital status: Marital status is protected under some state laws but not the federal Fair Housing Act.
Question 3. A lender refuses to make loans in a certain neighborhood because of the racial makeup of the area. This is:
- ① Blockbusting
- ② Redlining
- ③ Steering
- ④ Disintermediation
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Answer: ② Redlining
Key point: Refusing loans by area = redlining
Redlining is refusing to make loans or provide insurance in a certain area because of the race or other protected class of the people who live there.
Wrong choices
- Steering: Steering is done by licensees guiding buyers.
- Blockbusting: Blockbusting is scaring owners into selling.
- Disintermediation: Disintermediation is money leaving banks for other investments.
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