Fair HousingIntermediateArizona Exam

In Arizona, a landlord who requires a co-signer only from applicants of a specific national origin is engaging in:

AReasonable financial risk management

BDisparate treatment discrimination based on national originCorrect

CA permitted practice for high-risk applicants

DLegal credit enhancement practices

Why Disparate treatment discrimination based on national origin Is Correct

Answer B: Disparate treatment discrimination based on national origin

Applying different requirements—such as requiring a co-signer—selectively to applicants of a specific national origin (while not requiring co-signers from similarly qualified applicants of other backgrounds) is disparate treatment discrimination.

Exam Tip: Fair Housing

Fair Housing questions test both federal (Fair Housing Act of 1968) and state-level protected classes. The federal protected classes are race, color, religion, national origin, sex, familial status, and disability. Many states add additional protections.

People Also Study

Key Terms to Know

Fair Housing Act

Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.

Steering

An illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.

Redlining

An illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.