Fair Housing Laws on the California Real Estate Exam: What to Know

Fair housing questions appear on every California DRE salesperson exam. They test whether you know which laws apply, which classes are protected, and what agents can and cannot do. Getting these right is not only good for your score — it's essential for your career.

Federal Fair Housing Act (1968)

The federal Fair Housing Act prohibits discrimination in the sale, rental, or financing of housing based on seven protected classes:

1. Race 2. Color 3. National origin 4. Religion 5. Sex 6. Familial status (families with children under 18, pregnant women) 7. Disability

These seven classes are always tested. Memorize them.

California's Fair Employment and Housing Act (FEHA)

California goes further than federal law. The state adds additional protected classes:

- Marital status - Sexual orientation - Gender identity and expression - Source of income (e.g., Section 8 vouchers) - Ancestry - Age (in housing) - Military and veteran status - Citizenship and immigration status

On exam questions, if a California-specific protected class appears in the answer choices, choose California law — it provides broader protection.

Prohibited Practices

Steering — directing buyers or renters toward or away from certain neighborhoods based on protected class characteristics. Example: telling a family "you'd be more comfortable in that neighborhood" based on their race or religion.

Blockbusting (Panic Selling) — inducing homeowners to sell by suggesting that people of a protected class are moving into the area, which will lower property values.

Redlining — refusing to make loans or provide insurance in certain geographic areas based on the racial or ethnic composition of the neighborhood.

Discriminatory advertising — any ad that indicates a preference or limitation based on a protected class. This includes phrases like "ideal for couples" (familial status) or "Christian community" (religion).

Exemptions to the Fair Housing Act

A few narrow exemptions exist under federal law:

- Owner-occupied buildings with 4 or fewer units — the owner lives in one of the units ("Mrs. Murphy exemption") - Single-family homes sold or rented by the owner without a broker and without discriminatory advertising - Religious organizations may restrict housing to members of their religion in non-commercial housing - Private clubs may restrict housing to their members

Important: California's fair housing laws have fewer exemptions than federal law. When in doubt, follow the stricter California standard.

Disability Accommodations

Landlords must: - Make reasonable accommodations in rules, policies, or services when needed by a person with a disability - Allow reasonable modifications to the property (the tenant typically pays for these)

A landlord cannot refuse to rent to someone because they use a wheelchair or have a service animal.

Common Exam Questions

Q: A seller tells their agent they only want to sell to buyers of a specific religion. What should the agent do?

A: Refuse to follow the instruction and explain that it violates the Fair Housing Act. An agent cannot follow instructions that require discrimination.

Q: A buyer asks an agent which neighborhoods have the "best schools" as a way of asking about demographics. What should the agent do?

A: Provide factual school performance data only. Do not steer based on demographics.

Q: An apartment building has 6 units. The owner lives in one. Is the owner exempt from fair housing laws?

A: No. The Mrs. Murphy exemption only covers owner-occupied buildings with 4 or fewer units. A 6-unit building does not qualify.

Key Takeaway

California's fair housing protections are among the broadest in the country. When a question involves a conflict between federal and California law, apply the law that offers more protection to the buyer or tenant.

Practice fair housing questions by topic at CARealestate.com — our quiz covers every protected class and scenario tested on the real exam.