Reinforce your office’s fair housing knowledge
MAR produces the resources you need
By Brian Westrin, J.D., MAR Manager of Legal Affairs

This month marks the 38th Anniversary of the signing of the Fair Housing Act, as well as the nation’s observance of Fair Housing Month. For citizens and real estate professionals alike, it is a time to pay special attention to the significance of both state and federal fair housing laws. For REALTORS®, however, a clear understanding and dedicated commitment to fair housing law is not a “one month out of the year” endeavor. REALTOR® education and adherence under the fair housing laws is a constant endeavor because REALTORS® represent a powerful tool in the battle against housing discrimination in America. Not only are REALTORS® bound by state and federal fair housing laws, the REALTOR® Code of Ethics mandates that REALTORS® ensure that their clients and members of the public receive equal professional services at all times.

The Fair Housing Act covers the majority of housing options in the United States. According to the United States Department of Housing and Urban Development (“HUD”), it is a violation of the Fair Housing Act for an individual to take any of the following actions based on the protected classes of race, color, national origin, religion, sex, familial status or handicap:

• Refuse to rent or sell housing
• Refuse to negotiate for housing
• Make housing unavailable
• Deny a dwelling
• Set different terms, conditions or privileges for sale or rental of a dwelling
• Provide different housing services or facilities
• Falsely deny that housing is available for inspection, sale, or rental
• For profit, persuade owners to sell or rent (blockbusting) or
• Deny anyone access to or membership in a facility or service (such as a multiple listing service) related to the sale or rental of housing.

The above mentioned parameters are aimed at the equal treatment of both current property owners as well as prospective home buyers. A substantial first-step towards establishing and maintaining the equal treatment of both buyers and sellers is by informing either the buyer or seller, or, in cases of dual agency, both parties, that all parties to a real estate transaction are bound by fair housing laws. As such, all parties are subject to the consequences of violating fair housing laws. Informing a client that there can be no discrimination on the basis of race, color, religion, sex, handicap, familial status, or national origin in the sale or rental of a property should be done as a matter of course throughout an agent’s career. Making affirmative efforts toward educating homeowners and homebuyers on the requirements of fair housing law may seem like a burdensome practice. However, such efforts will help eliminate any uncertainty between the agent and their client about what services they are entitled to offer.

When working with a buyer it is required to provide equal professional service. A REALTOR® can accomplish this by being systematic in their approach. Avoid the temptation for an agent to believe that they know what is best for their client. The best policy for working with buyers is to solicit only objective information while allowing the customer to set the limits on the type of home they’d like view. By obtaining objective information about the client’s interest, it will be far easier to provide a variety of options from which to choose from. As a protective measure, an agent should document every option provided for the client. Should the unfortunate circumstance arise where an agent is charged with housing discrimination, the agent will have a record of services provided to offer as proof that they provided equal treatment.

When working with a seller, a REALTOR® should inform the homeowner that there are specific rights and responsibilities involved in selling or leasing property. An effective way to do this is by providing the seller with an informational brochure outlining rights and duties under fair housing law. From the MAR website (www.mirealtors.com) you can download or order “A REALTOR’S® Guide to Housing Opportunities”. MAR also has a fair housing training kit available. Owners/managers can use the kits to train their staff on fair housing rules and regulations. To request a kit send an email to jkras@mirealtors.com. Additionally, the National Association of REALTORS® (www.realtor.org) has prepared a brochure to distribute called “What Everyone Should Know about Equal Opportunity in Housing”. Even after informing the seller about fair housing requirements an agent may still feel pressure from their client to violate fair housing laws. In some instances, it may be necessary to cancel the listing agreement if the client refuses to adhere to the law.

Developing a strong understanding of the fair housing laws at both the state and federal level is the best offense and defense that a REALTOR® can employ in the handling of potential housing discrimination in a real estate transaction. The ability to recite the law to both buyers and sellers allows a REALTOR® to protect not only themselves from allegations concerning housing discrimination but also from perpetuating housing discrimination.

REALTORS® are in the business of providing equal professional service to all clients. Take the month of April to reinforce this commitment within your offices and business.