Fair Housing
A NC real estate professional who encounters discrimination in housing should be aware that the penalty for a willful first violation of the Fair Housing Act may include:
AA warning letter only
BUp to $16,000 civil penalty (for first violations) plus compensatory and punitive damages✓ Correct
CA $100 fine
DOnly a license suspension
Explanation
Under the FHA, willful first-time violations can result in civil penalties up to approximately $16,000 (adjusted for inflation), plus compensatory and punitive damages in private lawsuits — amounts increase for subsequent violations.
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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.
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.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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.
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