Fair Housing
Under the Fair Housing Act, the exemption for owner-occupied buildings with four or fewer units applies only if:
AThe owner uses a real estate agent to rent the units
BThe owner lives in the building and does not use discriminatory advertising✓ Correct
CThe owner has owned the building for at least 5 years
DThe building is in a rural area
Explanation
The 'Mrs. Murphy exemption' allows owners of owner-occupied buildings with four or fewer units to exercise some personal discretion in tenant selection, but only if the owner lives in the building and does not use discriminatory advertising or a real estate broker.
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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.
Joint TenancyCo-ownership where two or more people hold equal, undivided interests with the right of survivorship — when one owner dies, their share passes to the surviving owners.
ZoningLocal government regulations that control land use by dividing areas into zones specifying permitted uses, building sizes, and densities.
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.
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