Federal Antidiscrimination Legislation
Federal laws that prohibit discrimination in real estate transactions and related activities include:
-the Civil Rights Act of 1866,
-the Civil Rights Act of 1964,
-the Fair Housing Act,
-federal fair lending laws, and
-the Americans with Disabilities Act
The Civil Rights Act of 1866
This law prohibits discrimination in real estate transactions on the basis of race or color.
It was passed as part of a series of post-Civil War reforms.
Unlike the Fair Housing Act, which applies only to residential property, the 1866 Civil Rights Act ap
Compensatory damages
To compensate for losses and suffering caused by the discrimination
The court can order he defendant to pay compensatory damages (Actual damages) to the plaintiff. Compensatory damages cover the losses or expenses incurred, and may also include compensati
Punitive damages
An additional sum to punish the defendant for wrongdoing
The defendant may be ordered to pay punitive damages instead of, or in addition to, compensatory damages.
Punitive damages are intended to punish the defendant and discourge others from discriminati
The Civil Rights Act of 1964
The Civil Rights Act of 1964 was one of the federal government's first attempts to promote equal opportunity in housing.
The act prohibited discrimination based on race, color, religion, or national origin in many programs and activities for which the fed
The Fair Housing Act
(Title VIII of the Civil Rights Act of 1968)
(Application of the law)
The Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, disability, or familial status in the sale, lease, or financing of residential proper
Title VIII of the Civil Rights Act of 1968
**See The Fair Housing Act
Exemptions - The Fair Housing Act
Exemptions. While the Fair Housing Act applies to the majority of residential real estate transactions, four types of transactions are exempt from it.
-For sale by owner:
The Fair Housing Act doesn't apply to a single-family home sold or rented by a priva
Prohibited Acts - The Fair Housing Act
The Fair Housing Act prohibits the following acts if they are done on the basis of race, color, religion, sex, national origin, handicap (disability), or familial status:
-refusing to rent or sell residential property after receiving a bona fide good fai
Blockbusting
(Panic selling)
(Panic peddling)
It is illegal for a real estate agent to induce home owners to sell or list their homes by predicting that members of another race or ethnic group, or people suffering from some disability, will be moving into the neighbor
Panic selling
**See Blockbusting
Panic peddling
**See Blockbusting
Steering
It is illegal for a real estate agent to channel prospective buyers or tenants toward or away from particular neighborhoods based on their race, religion, or national origin, in order to maintain or change the character of the neighborhoods.
Steering refe
Redlining
It is illegal for a lender to refuse to make a loan because of the racial or ethnic composition of the neighborhood in which the property is located.
Occurs when a lender refuses to make mortgage loans in a particular neighborhood because of its racial or
Disability and Familial Status
Originally, the Fair Housing Act didn't prohibit discrimination based on disability or familial status; these classifications were added to the law in 1988, and it's very important for real estate agents to understand the implications of these additions..
Disability - Disability and Familial Status
(Handicap in the act)
In the Fair Housing Act, disability refers to both physical and mental impairments that substantially limit one or more major life activities.
In connection with residential property, it's a violation of the Fair Housing Act to discr
Familial Status - Disability and Familial Status
Familial status is a protected class including persons who have a child living with them.
The protection also extends to persons who are pregnant or securing custody of a child.
Familial status is another category that cannot be a basis for housing discri
Enforcement - Disability and Familial Status
What can a person who has been the victim of discrimination do about it?
Someone who believes she has been discriminated against, in violation of the Federal Fair Housing Act, may file a complaint with the Office of Fair Housing and Equal Opportunity.
As
Federal Fair Lending Laws
The Fair Housing Act prohibits discrimination in residential mortgage lending. It doesn't apply to other types of credit transactions, however.
Equal Credit Opportunity Act
(ECOA)
ECOA prohibits lenders, loan originators, and others from discriminating against mortgage loan applicants based on race, color, religion, national origin, sex, marital status, age, or receipt of public assistance.
A federal law which attempts to ma
Home Mortgage Disclosure Act
To help prevent redlining, the Home Mortgage Disclosure Act requires large mortgage lenders to submit annual reports about their residential lending to government regulators.
Provides a way to evaluate whether lenders are fulfilling their obligation to se
ADA
(Americans with Disabilities Act)
The Americans with Disabilities Act (ADA), which has been in effect since 1992, is a federal law intended to ensure that people with disabilities have equal access to public facilities.
The ADA requires any business or ot
Disability
(Handicap)
Any physical or mental impairment that substantially limits one or more of an individual's major life activities (the same definition used for the Fair Housing Act).
California Antidiscrimination Legislation
Real estate agents, sellers, landlords, and others involved in real estate activities must comply not only with the federal laws we've covered, but also with state laws that prohibit discrimination.
In California,
-the Unruh Civil Rights Act,
-the Fair Em
Unruh Civil Rights Act
The Unruh Civil Rights Act prohibits California business establishments from discriminating against customers.
Under California's Unruh Civil Rights Act, everyone is entitled to the full use of any services provided by a business establishment, regardless
Fair Employment and Housing Act
(Rumford Act)
The Fair Employment and Housing Act is also known as the Rumford Act.
It generally prohibits all housing discrimination in California based on race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, familia
Rumford Act
**See Fair Employment and Housing Act
Chart - Antidiscrimination Legislation
Legislation
-Prohibits Discrimination
Civil Rights Act of 1866
-Based on race, for any type of property
Civil Rights Act of 1964
-In some federal programs
Fair Housing Act
-In sale, lease, or financing of housing
Americans with Disabilities Act
-In any pu
Housing Financial Discrimination Act
(Holden Act)
It prohibits lenders from basing mortgage lending decisions on neighborhood characteristics, except when necessary to avoid an unsound business practice.
The California Housing Financial Discrimination Act (which is sometimes called the Holde
Holden Act
**See Housing Financial Discrimination Act
Real Estate Law and Regulations
Both the California Real Estate Law and the Real Estate Commissioner's regulations prohibit discriminatory behavior by licensees.
Licensees who engage in discriminatory behavior are subject to disciplinary action, and may have their licenses suspended or
Discriminatory Restrictive Covenants
Restrictive covenants prohibiting the sale or lease of a property based on race, religion, or other protected characteristics are legally unenforceable.
A discriminatory covenant in a deed does not make the conveyance invalid, but the covenant has no lega
Public accommodation
Under the ADA, a public accommodation is a private entity with facilities that are open to the public and affect commerce.
A private entity with facilities open to the public, if operation of the facilities affects commerce.
1. When a real estate agent channels prospective buyers away from a particular neighborhood because of their race, it's called:
A. blockbusting
B. steering
C. redlining
D. clipping
B. steering
2. Rental of a room or a unit in an owner-occupied dwelling is exempt from the federal Fair Housing Act if the dwelling contains:
A. two or more units
B. three units or less
C. less than five units
D. six units or more
C. less than five units
3. A real estate broker is helping the Jacksons sell their single-family home. Can this transaction be exempt from the federal Fair Housing Act?
A. Yes, as long as the Jacksons own no more than three single-family homes
B. Yes, as long as no discriminator
C. No, because a real estate agent is involved
4. The Gardenia Village condominium has a "No Kids" rule. This is not a violation of the federal Fair Housing Act:
A. if the condo qualifies as "housing for older persons" under the terms of the law
B. if no discriminatory advertising is used
C. because t
A. if the condo qualifies as "housing for older persons" under the terms of the law
5. Title VIII of the Civil Rights Act of 1968 prohibits:
A. discrimination in housing
B. discrimination in residential lending
C. Both a) and b)
D. Neither a) nor b)
C. Both a) and b)
6. Blockbusting is an acceptable practice:
A.only under the supervision of real estate
licensees
B. only when approved in advance by either HUD or the Justice Department
C. only if the seller and the buyer mutually agree to it
D. under no circumstances
D. under no circumstances
7. A deed restriction created in 1920 that prohibits the sale of property to a non-white person until after 2020 is:
A. valid until all the property owners agree to eliminate the restriction
B. enforceable
C. unenforceable
D. covered by title insurance
C. unenforceable
8. The Home Mortgage Disclosure Act helps to enforce the prohibition against:
A. redlining
B. steering
C. blockbusting
D. flipping
A. redlining
9. To comply with the federal Fair Housing Act, a landlord is required to:
A. permit a disabled tenant to make reasonable modifications to the property at the tenant's expense
B. make reasonable exceptions to the landlord's rules to accommodate disabled t
C. Both a) and b)
10. Under California law, it would be permissible for a landlord to refuse to rent to a prospective tenant because the tenant:
A. has a child
B. is blind
C. can't afford the rent
D. All of the above
C. can't afford the rent
11. The Unruh Civil Rights Act prohibits discrimination by:
A. lenders only
B. real estate agents only
C. all real estate related businesses
D. any business entity
D. any business entity
12. Which of the following is not covered by the federal Fair Housing Act?
A. A commercial building leased to businesses that are open to the public
B. An eight-unit multifamily dwelling
C. A triplex listed for sale with a real estate broker
D. A vacant l
A. A commercial building leased to businesses that are open to the public
13. A developer who intended to rent housing in a particular development only to persons 45 years of age or over would be in violation of the:
A. Civil Rights Act of 1866
B. Civil Rights Act of 1964
C. Fair Housing Act
D. Americans with Disabilities Act
C. Fair Housing Act
14. Under the Americans with Disabilities Act:
A. real estate firms are exempt
B. real estate firms may discriminate against people with disabilities when taking listings, if appropriate
C. real estate offices must be accessible to people with disabilitie
C. real estate offices must be accessible to people with disabilities
15. The California Housing Financial Discrimination Act prohibits:
A. redlining
B. steering
C. blockbusting
D. panic selling
A. redlining
Injunction
The court can issue an injunction ordering the defendant to stop the violations. This may include an order requiring the defendant to sell or lease the property to the plaintiff.
Section 8
One other important federal program you should know about is not an antidiscrimination law, but rather a program intended to make rental housing more affordable.
The Department of Housing and Urban Development's Section 8 program authorizes the payment of