Fair HousingIntermediateNorth Carolina Exam

A NC property owner who asks their broker 'How many minorities live in this neighborhood?' in order to decide whether to sell is asking the broker to engage in:

AA legitimate market research question, though specific requirements can vary depending on the transaction details

BPotentially discriminatory conduct — the broker should not provide information that facilitates discriminationCorrect

CA fair housing-neutral inquiry

DAn acceptable neighborhood analysis

Why Potentially discriminatory conduct — the broker should not provide information that facilitates discrimination Is Correct

Answer B: Potentially discriminatory conduct — the broker should not provide information that facilitates discrimination

A broker who provides racial composition data in response to a seller trying to choose buyers based on neighborhood demographics facilitates potential discrimination. The broker should decline to assist in discriminatory decision-making.

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.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.