Fair Housing Broker Guide

Overview

April is Fair Housing month which marks the annual celebration of the

passage of the 1968 Fair Housing Act and allows us the perfect time to

not only educate the public on the importance of Fair Housing laws, but

refresh our own knowledge of the law and risk management practices.

Federal fair housing law consists of the Civil Rights Act of 1866 and

Title VIII of the Civil Rights Act of 1968, otherwise known as the Fair

Housing Act. As of 1988, the Act provides that no protected class can

 •Race–Agroupofpeopleunitedbasedonacommonhistory,

nationality, or geography

 •Color–Thecolorofone’sskin

 •Religion

 •Gender

 •NationalOrigin–Aperson’sortheirancestor’scountryofbirth

 •FamilialStatus-Individualsunderage18wholivewithaparentor

guardian, pregnant women, and anyone about to obtain custody of

someone under 18.

 •Disability-anindividualwithaphysicalormentalimpairmentthat

Housing oce has also included hoarding as a disability .

Virginia Fair Housing Law adds an additional protected class:

Elderliness (e.g. age 55 years or older)

Some Virginia localities impose their own fair housing protected

classes. Always check the local fair housing ordinances in your county.

AsREALTORS®,wearealsoboundbyArticle10oftheCodeofEthics

which prohibits discrimination against two additional protected classes:

Sexual orientation and gender identity.

Code of Ethics: Article 10

REALTORS®shallnotdenyequalprofessionalservicestoanypersonfor

REALTORS®,intheirrealestateemploymentpractices,shallnot

discriminate against any person or persons on the basis of race,

color, religion, sex, handicap, familial status, national origin, sexual

orientation, or gender identity. (Amended 1/14)

Prohibited Activities

Discriminationcantaketheformof:

 •Refusingtosell,lease,orotherwisemakeunavailableadwellingto

a particular individual who has the ability to purchase or rent the

dwelling because he or she is a member of a protected class.

 •Inducingapersontosellorrentbyreferringtotheprospective

 •Steering:aneorttoinuenceaperson’shousingchoicesbasedon

race or other protected class

 •Themaking,printing,orpublishingofanystatement,noticeor

advertisement with language that indicates a preference, limitation

or discrimination on the basis of a protected class.

TheCodeofEthicsgivesREALTORS®furtherguidanceonprohibited

activities:

Standard of Practice 10-1

Wheninvolvedinthesaleorleaseofaresidence,REALTORS®shall

not volunteer information regarding the racial, religious or ethnic

discriminatory act prohibited by fair housing laws (employers may be

liabletoo–e.g.brokers,propertymanagementcompanies.Theydon’t

need to have known or participated).

Fair Housing Testers

Persons who pose as prospective buyers or renters for the purpose

of gathering information on whether a housing provider is complying

with fair housing laws. The primary focus of the program is to identify

unlawful housing discrimination on the basis of race, national origin,

disability,orfamilialstatus.Since1992,theDepartmentofJustice

 •Injunctiverelief

 •Suspensionorrevocationoflicense

 •$11,000forrstoense

 •$27,500forsecondoensewithin5years

 •$55,000fortwoormoreoenseswithin7years

Risk Management

 •Becomefamiliarwithalltheprotectedclasses(includinglocal

ordinances) and their definitions.

 •Developandfollowstandardproceduresforallbuyersandsellers.

 •Allowbuyerstosettheirownlimitsandmaketheirownchoicesin

trying to follow fair housing law.

Questions and Answers

Questions

A sales associate shows the parents of a blind toddler a house for sale

at the end of a quiet cul-de-sac. One block away, on a busy corner, the

parents notice another house for sale that meets their specifications

and ask why the sales associate didn’t show them that one. Did the

sales associate violate fair housing laws?

Answer

Potentially.Evenifthesalesassociatehasthefamily’sbestinterestsin

Answer

Potentially.Aperfectlysincereconcernforthiswoman’ssafetymay

haveledthemanagertosteerthetenanttothetop-oorunithe

perceives as safer. He can be said to be acting discriminatorily based on

thetenant’sgender.

Questions

Can a landlord refuse to rent to five college students without worrying

about discrimination?

Answer

Ordinarily,yes.Collegestudentsarenotaprotectedclass.However,

What should I do if I’m representing sellers who express an intent

to discriminate in violation of the Fair Housing Act—someone who

refuses to sell to an African American, for example?

Answer

This is not the time to be diplomatic. Remind the sellers that they pledged in

the listing contract not to discriminate. Explain that you cannot honor their

request.Ifthesellersareunwillingtoabidebyfairhousinglaws,terminatethe

relationship and confirm your decision in a letter to the sellers and with a copy

in your transaction file.

If the sellers express their feelings in front of a potential buyer, follow the same