by Sandy Hicks   Among the most important documents ever written is the Declaration of Independence, which proclaims that all people of the United States have the right to pursue happiness. For most Americans, that means the right, within our means, to work and live where we desire without discrimination. In 1866, the Civil Rights Act made it clear that all people in every U.S. state and territory, had the right to inherit, purchase, lease, sell, hold, and convey real and personal property without regard to race.

Not until the 1960s, however, was any significant governmental action implemented to help all people achieve that right. Before then, several decisions were made and laws passed, but they lacked any significant impact that would provide protection or remedies.

In 1962, President Kennedy issued an executive order entitled "Equal Opportunity in Housing." The cause languished, mired in debate until the assassination of Martin Luther King on April 4, 1968. Shortly afterward, the Fair Housing Act of 1968 was passed and signed into law by President Johnson. Since then, there have been revisions to the Fair Housing Act of 1968 to include various classes of people who are now protected.

It has been a long, difficult struggle from the date the Declaration of Independence was signed to provide all of us, regardless of race or creed, "the unalienable right to pursue happiness." Remembering our history and knowing the details of the Fair Housing Act of 1968 can help us avoid making the same mistakes in the future.

1) Was the Fair Housing Act the first place that provided equal rights for all?   

2) Are nonresidents of the United States protected under the act?   

3) Does the act allow for any discrimination against race?   

4) Does the Fair Housing Act contain any exemptions?   

5) What are the protected classes?   

6) Is sexual orientation a protected class?   

7) Do all claims of discriminatory acts fall under the Fair Housing Act?   

8) Can a HUD tester file a claim of discrimination and seek the same remedies as a member of the general public?   

9) How long does an aggrieved party have to file a claim of discrimination under the Fair Housing Act?   

10) If a licensee is working with or for a party involved in a claim of discrimination, can the licensee sue for lost compensation due to that alleged act of discrimination?   

11) Are publications available that enable you to comply with provisions of the Fair Housing Act in advertising?   

12) Do the Fair Housing Act and the regulations under it apply to commercial properties?   

13) Is it legal to advertise only in geographical areas populated by particular racial, ethnic, or religious groups of people as long as you prepare the ads in the language of that particular ethnic group?   

14) Is it legal to target-market housing that has been found to meet the requirements for the Housing for Older Persons exemption under the Fair Housing Act?   

15) Recently, in California, a case was brought against a subdivision because an attorney was refused approval on his purchase of a home because of his profession. This is a blatant case of discrimination under the Fair Housing Act, isn't it?   

16) If you have listed a smaller home in an area in which predominately senior citizens live that is not qualified as exempt for housing for older people, is it acceptable to exclusively advertise the listing in a magazine whose primary readership is senior citizens?   

17) When presenting an offer to the seller, must you, under agency laws, answer questions your seller-client asks about the ethnic background of prospective purchasers?   

18) Is it steering if your customer or client wishes to be shown houses only in an area made up of his own ethnic background?

Complete list of answers:

1) No. The Declaration of Independence was.

2) Yes, nonresidents of the United States are protected. The law clearly states that all people are to be treated equally.

3) No.

4) Yes. The Fair Housing Act contains seven exemptions:
a) A religious organization may discriminate with respect to its noncommercial property provided that the religion itself doesn't discriminate on the basis of race, color, or national origin;
b) The act does not prohibit a private club, not in fact open to the public, from limiting the rental or occupancy of noncommercial lodgings to members. (Note that this does not address the issue of whether a private club may discriminate when admitting members. That type of claim falls under the Civil Rights Act.);
c) The act does not limit the applicability of any reasonable local, state, or federal restrictions regarding the maximum number of people to occupy a dwelling;
d) The act does not prohibit conduct against a person because such a person has been convicted in a court of law for illegally distributing or manufacturing controlled substances;
e) Discrimination based on familial status will not apply to housing qualifying for exempted status as housing for older people;
f) The sale or rental of a single-family house by the owner will be exempt from coverage, providing the following conditions are met: The owner does not own or have any interest in more than three single-family houses at any one time, and the house is sold or rented without the services of a real estate licensee or the facilities of any person in the business of selling or renting dwellings. The exemption will apply to one sale within a two-year period unless the owner was the most recent applicant. (Note that the Civil Rights Act still applies.);
g) The act does not cover owner-occupied dwellings designed for occupancy by no more than four families living independently of each other (Mrs. Murphy's Exemption).

5) There are seven. A good way to remember them is the sentence, "REALTORS® can really sell houses fast now." The first letter of each word stands for one of the classes: race, color, religion, sex, handicap (disability), familial status, national origin.

6) No.

7) No. Some claims of discrimination could fall under the Civil Rights Act.

8) Yes.

9) One year.

10) Yes, the licensee can sue.

11) Yes. Fair Housing Manual, which can be ordered from The Oregon Newspaper Publishers Association by calling (503/624-NEWS).

12) Yes.

13) No. Exclusive marketing that is targeted to one protected class when no other marketing efforts are made is potentially discriminatory.

14) Yes. As long as the housing is qualified for exempt status as housing for older people, targeting older persons is not discriminatory.

15) No. The courts found that attorneys are not included in the protected classes, and the developer won the case, which he had based on the fact that the attorney's profession made him unacceptable due to the litigious nature of his business.

16) No. If the advertisement is the only form of advertising, this could be interpreted as discriminatory and appear to be an attempt to exclude families with children from responding.

17) No. You may answer with factual information pertaining to the qualifications of the prospective purchasers but nothing based on any of the seven protected classes.

18) No. It is steering when you make the decision based on that person’s ethnicity and show them houses in certain areas based on their ethnic background. A REALTOR® must exercise caution, however, and document that the REALTOR® acted specifically at the prospect's instructions.

Sandy Hicks, ABR, CREI, GRI, has taught real estate courses, including fair housing MCE classes, for several years. She created the Continuing Education Real Estate Program for Midland College in 1993 and has been a broker for more than 20 years.

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