Real Estate Practice
This chapter addresses the day-to-day conduct of real estate business, with a strong emphasis on fair housing law and ethical dealing. Following these rules protects consumers and keeps licensees out of legal trouble.
Federal Fair Housing Law
The federal Fair Housing Act prohibits discrimination in housing based on seven protected classes: race, color, religion, national origin, sex, familial status, and disability. It bars refusing to sell or rent, setting different terms, and making discriminatory statements or advertisements. Enforcement is handled by the U.S. Department of Housing and Urban Development. Some state and local laws add protected classes such as age, marital status, or sexual orientation.
Prohibited Practices
Steering is the illegal practice of directing prospective buyers toward or away from neighborhoods based on a protected characteristic. Blockbusting is inducing owners to sell by suggesting that people of a protected class are moving into the area. Redlining is the refusal of lenders to make loans in certain areas based on the composition of the neighborhood. All three practices violate fair housing law, and licensees must provide equal professional service to everyone.
Advertising and Professional Conduct
Advertising must be truthful and must not express any preference or limitation based on a protected class. Licensees should present all properties honestly and let consumers make their own choices about where to live. Providing reasonable accommodations for persons with disabilities, such as allowing service animals despite a no-pets policy, is required. Ethical, transparent practice builds consumer trust and reduces the risk of discrimination complaints.