North Dakota Fair Housing Guide for the Real Estate Exam

# North Dakota Fair Housing Guide for the Real Estate Exam

Fair housing law is tested on both the national and state sections of the North Dakota PSI real estate exam. You must understand both federal law and how it applies within North Dakota's regulatory framework.

Federal Fair Housing Act (1968)

The Fair Housing Act prohibits discrimination in the sale, rental, and 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 (physical or mental)

Key Prohibited Practices

Steering: Guiding buyers toward or away from neighborhoods based on protected class characteristics.

Blockbusting: Inducing homeowners to sell by suggesting that members of a protected class are moving into the neighborhood, causing property values to decline.

Redlining: Refusing to provide loans or insurance in certain geographic areas based on the demographic composition of those areas — a practice primarily associated with lenders, not agents.

Discriminatory advertising: Any listing or advertisement that expresses a preference for or against a protected class.

Exemptions to the Fair Housing Act

The Act includes limited exemptions: - Owner-occupied buildings with no more than four units (the "Mrs. Murphy" exemption) - Single-family homes sold or rented without a broker and without discriminatory advertising - Housing operated by religious organizations for their members (if membership is not restricted by race) - Private clubs providing housing to their members

Important: Real estate licensees cannot claim these exemptions in their professional capacity. If a broker is involved, fair housing law applies fully.

The Americans with Disabilities Act (ADA)

The ADA applies to commercial properties and public accommodations. For residential property, the Fair Housing Act's disability provisions are more directly applicable. Disabled tenants have the right to make reasonable modifications at their own expense.

North Dakota State Law Additions

North Dakota's Human Rights Act extends fair housing protections beyond the federal minimums. State law adds marital status and status with respect to public assistance as protected classes in housing transactions. The North Dakota Department of Labor and Human Rights enforces these protections.

On the state exam, expect questions that test whether you know which protections are federal versus state-only.

Practice Scenarios

Scenario 1: A buyer asks her agent to find homes only in neighborhoods with a particular ethnic majority. What should the agent do?

The agent must refuse and explain that complying would constitute illegal steering under the Fair Housing Act.

Scenario 2: A landlord refuses to rent to a couple receiving housing assistance. Is this legal under federal law?

Federal law does not protect source of income, but North Dakota state law does protect status with respect to public assistance — making this a violation under state law.

Know these distinctions cold before exam day.