Under the Fair Housing Act, a landlord may reject a rental applicant based on:
Why Legitimate, non-discriminatory business criteria such as poor credit history or insufficient income Is Correct
Answer B: Legitimate, non-discriminatory business criteria such as poor credit history or insufficient income
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.
Key Fair Housing Terms in This Question
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- A NC landlord who gives preferential treatment to applicants referred by existing tenants creates a potential fair housing issue if:Fair Housing
- The federal Fair Housing Act of 1968 prohibits discrimination based on all of the following EXCEPT:Fair Housing
- The NC Fair Housing Act (North Carolina law) prohibits housing discrimination based on the same protected classes as the federal act plus:Fair Housing
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- The NC Residential Rental Agreements Act governs the rights and responsibilities of landlords and tenants. Under this act, a landlord is generally required to:Property Management
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Key Terms to Know
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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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