Fair Housing

A property manager uses an application scoring system that results in a much lower approval rate for applicants of a certain national origin. Even if unintentional, this may violate fair housing law under the theory of:

ADisparate treatment
BDisparate impact✓ Correct
CConstructive fraud
DRedlining

Explanation

Disparate impact theory holds that neutral-seeming policies or practices that disproportionately and negatively affect protected classes can violate fair housing law, even without discriminatory intent. The property manager would need to show the policy is justified by a business necessity.

Related California Fair Housing Questions

Practice More California Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free California Quiz →