Fair Housing
What is a discriminatory covenant and are they enforceable in Ohio?
AThey are legal and enforceable
BDiscriminatory covenants are void and unenforceable under the FHA and Shelley v. Kraemer, though they may remain in old deeds✓ Correct
CThey can be enforced by private parties
DOnly commercial discriminatory covenants are unenforceable
Explanation
Racial and other discriminatory covenants (deed restrictions excluding certain groups) were ruled unenforceable by the Supreme Court in Shelley v. Kraemer (1948) and are further voided by the FHA.
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Key Terms to Know
Deed
A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).
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.
Deed of TrustA security instrument used in many states instead of a mortgage, involving three parties: borrower (trustor), lender (beneficiary), and a neutral trustee.
Fair Housing ActFederal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
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