Indiana Fair Housing Laws: What's on the Real Estate Exam

Fair housing is tested on both the national and state sections of the Indiana real estate exam. You need to know the federal protected classes, what Indiana adds to them, and what constitutes a prohibited act.

Federal Fair Housing Act (1968) — Protected Classes

The federal Fair Housing Act prohibits discrimination based on:

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

These seven classes apply in all 50 states and are the foundation for both the national and state exam sections.

Indiana's Additional Protected Classes

Indiana adds two classes beyond federal law:

• Ancestry
• Marital status

These additions mean Indiana real estate licensees cannot discriminate based on a person's lineage or whether they are married, single, divorced, or widowed. Expect at least one question on the state exam asking which classes Indiana adds.

Prohibited Acts Under Fair Housing

The following are illegal under both federal and Indiana fair housing law:

• Refusing to rent or sell based on a protected class
• Steering — directing buyers or renters toward or away from neighborhoods based on protected class characteristics
• Blockbusting — inducing owners to sell by suggesting that protected class members are moving into the area
• Redlining — refusing to make loans in certain areas based on demographic makeup
• Discriminatory advertising — using language that indicates a preference for or against any protected class
• Misrepresenting availability — falsely stating a property is unavailable to members of a protected class

Exemptions to the Fair Housing Act

Some exemptions exist under federal law (and generally mirror Indiana):

• Single-family homes sold or rented by the owner without an agent (owner cannot advertise discriminatorily)
• Owner-occupied buildings of 4 or fewer units (Mrs. Murphy exemption)
• Religious organizations that restrict housing to members
• Private clubs that restrict housing to members

Note: These exemptions do NOT apply to real estate licensees. A licensee cannot discriminate even when assisting a seller who would qualify for an exemption.

Enforcement

Under Indiana law, fair housing complaints can be filed with:

• HUD (federal level)
• Indiana Civil Rights Commission (ICRC)
• Federal district court

Remedies include actual damages, punitive damages, civil penalties, and injunctive relief. Indiana's civil rights enforcement process mirrors the federal complaint process.

What the Exam Tests

• Which protected classes are federal vs. Indiana additions
• Whether a specific act constitutes steering, blockbusting, or redlining
• Which exemptions apply to owner-occupants vs. agents
• The complaint process and available remedies

Practice Indiana fair housing questions at [CARealestate.com/states/indiana](https://carealestate.com/states/indiana).