The sale and purchase of a home is one of the most significant events that any person will experience in his or her lifetime. It is more that the simple purchase of housing, for it includes the hopes, dreams, aspirations, and economic destiny of those involved.
The Law
Civil Rights Act of 1866: The Civil Rights Act of 1866 prohibits all racial discrimination in the sale or rental of property.
Fair Housing Act: The Fair Housing Act declares a national policy of fair housing throughout the United States. The law makes illegal any discrimination in the sale, lease or rental of housing, or making housing otherwise unavailable, because of race, color, religion, sex, handicap, familial status, or national origin.
Americans with Disabilities Act: Title III of the Americans with Disabilities Act prohibits discrimination against persons with disabilities in places of public accommodations and commercial facilities.
Equal Credit Opportunity Act: The Equal Credit Opportunity Act makes discrimination unlawful with respect to any aspect of a credit application on the basis of race, color, religion, national origin, sex, marital status, age or because all or part of the applicant’s income derives from any public assistance program.
State and Local Laws: State and local laws often provide broader coverage and prohibit discrimination based on additional classes not covered by federal law.
Conduct Prohibited by the Fair Housing Laws
Refusals to Sell or Rent
Any refusal to sell or rent a dwelling because of race, color, sex, religion, national origin, handicap or familial status violates Title VIII. A refusal to sell can, for example, include applying more stringent qualification criteria for minority prospects than for nonminority prospects or a flat out refusal to sell to a person because of their national origin. Title VIII only applies to discrimination in the sale or rental of dwellings. The 1866 Act applies to the sale or rental of any type of real estate, but only applies to discrimination based upon race.
Steering
Steering is conduct designed to influence a person’s housing choice based upon race, religion, sex, color, national origin, handicap or familial status. The classic example of racial steering is a real estate agent directing minority prospects to integrated or all-minority neighborhoods, and white prospects to all-white neighborhoods. Evidence of steering is often gathered through the use of testers. Lawsuits challenging steering are often brought by the testers themselves or the fair housing organizations that employ them.
Blockbusting
Blockbusting, also known as panic peddling, refers to the suggestion, during an effort to solicit a listing, that the seller should sell or otherwise dispose of the property because persons of a particular race, religion, sex, national origin, color, handicap or familial status are moving into the neighborhood. Title VIII specifically prohibits blockbusting. Real estate professionals should exercise great caution when engaging in listing solicitations in neighborhoods known to be experiencing racial transition.
Source: NAR | Download the toolkit to help commemorate Fair Housing Month.
