Fair HousingIntermediateColorado Exam

In Colorado, a property owner who creates a covenant that states 'this property shall not be sold to any person of African descent' would have:

AA. A valid legal restriction enforceable by neighboring owners, a position that many in the industry would generally find reasonable
BB. An unenforceable racial covenant that violates the Fair Housing Act and Colorado law, and which is void and of no legal effectCorrect
CC. A historical document with no current legal implications
DD. A valid covenant enforceable by the HOA

Why B. An unenforceable racial covenant that violates the Fair Housing Act and Colorado law, and which is void and of no legal effect Is Correct

Answer B: B. An unenforceable racial covenant that violates the Fair Housing Act and Colorado law, and which is void and of no legal effect

Racially restrictive covenants were declared unenforceable by the Supreme Court (Shelley v. Kraemer, 1948) and are void under the Fair Housing Act.

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.

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