Real Estate Salesperson Exam (National Portion) Fair Housing Summary

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.

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.

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.

Blockbusting (panic peddling) is urging owners to sell by saying that people of a protected class are moving into the neighborhood and values will fall.

Wrong choices

• Steering: Steering is guiding buyers to or away from areas.
• Redlining: Redlining is done by lenders and insurers.
• Legal marketing: This is illegal under the Fair Housing Act.

The Fair Housing Act requires landlords to allow reasonable modifications to the unit, usually at the tenant's expense, and to make reasonable accommodations in rules, such as allowing an assistance animal in a no-pets building. A landlord may in some cases require the interior to be restored at move-out.

Wrong choices

• May refuse because the tenant is changing the unit: The law requires allowing reasonable modifications.
• Must pay for the grab bars: The tenant generally pays for modifications in private housing.
• May charge a higher security deposit for disability: Extra deposits because of disability are not allowed.

Fair housing ads must describe the property, not the kind of people wanted. "No kids" shows a preference based on familial status, which is illegal unless the property qualifies as housing for older persons.

Wrong choices

• "Three bedrooms, two baths, near schools": Describing the property is allowed.
• "Walking distance to the train station": Describing location features is allowed.
• "Wheelchair-accessible entrance": Describing accessibility features is allowed.

Under the federal Fair Housing Act, a complaint may be filed with HUD within one year of the alleged discrimination. A private lawsuit in federal court may be filed within two years.

Wrong choices

• 30 days of the alleged violation: The deadline is longer than 30 days.
• Five years of the alleged violation: Five years is too long for a HUD complaint.
• Two years only after first suing in court: A HUD complaint does not require a lawsuit first.

The Civil Rights Act of 1866 bars all discrimination based on race in buying, selling, or renting property, with no exceptions. The Fair Housing Act's exemptions, such as for some owner-occupied buildings, do not apply to race under the 1866 Act.

Wrong choices

• Discrimination based on familial status: Familial status was added by the 1988 amendments to the Fair Housing Act.
• Discrimination based on disability only: Disability protection came from later laws.
• Redlining by lenders only: The 1866 Act covers all property transactions, not only lending.