Fair Housing
Under the Fair Housing Act, which of the following is an allowable exemption?
AA real estate company refusing to list homes in integrated neighborhoods
BAn owner of a single-family home selling without a broker and using no discriminatory advertising✓ Correct
CA lender denying a loan based on the racial composition of the neighborhood
DA landlord refusing to rent to families with children in a general apartment complex
Explanation
An owner of a single-family home who sells without a broker and does not use discriminatory advertising may be exempt from certain Fair Housing provisions.
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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.
RedliningAn 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.
SteeringAn 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.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
State-Specific Concepts
DRE Regulation
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