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Practice & Fair Housing

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PRACTICE & FAIR HOUSING — CHEAT SHEET

ANTITRUST (Sherman Act)

Per Se Violations (never allowed):

|---|---|

KEY RULE: Commissions always negotiable. Never discuss rates with competitors.

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FAIR HOUSING — 7 PROTECTED CLASSES

Remember: R-CENSUS

  • Race
  • Color
  • National Origin
  • Religion
  • Sex (incl. sexual orientation, gender identity in many states)
  • Disability
  • Familial Status (families with children <18; pregnant persons)

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PROHIBITED PRACTICES

|---|---|---|

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FAIR HOUSING EXEMPTIONS

|---|---|---|

⚠️ RULE: Race is NEVER exempt from Fair Housing.

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DISABILITY ACCOMMODATIONS

Reasonable Accommodation: Policy/procedure change (no cost to landlord)

  • Example: Allow service animal despite "no pets" policy

Reasonable Modification: Physical alteration (tenant typically pays)

  • Example: Accessible ramp installation

Accessible Design: Required for new construction (4+ units, post-1991)

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ENFORCEMENT & TIMELINES

|---|---|---|

ViolationExample
Price fixingAgreeing with competitors on commission rates
Market allocation"You take north side, I'll take south side"
Group boycottRefusing to work with a broker as punishment
Tie-in arrangement"Use my title company or I won't list your property"
PracticeDefinitionRed Flag
SteeringDirecting buyers by protected class ("That neighborhood is for…")Limiting showings by class
BlockbustingPanic selling by implying class will move in ("Your neighborhood is changing…")Fear-based solicitation
RedliningArea-based loan denial or refusal to serveDiscriminatory underwriting
Discriminatory advertisingAds suggesting class preference ("Peaceful community," "Near golf club")Code words; photos/language
ExemptionRequirementsCRITICAL LIMITS
Mrs. MurphyOwner-occupied 1–4 units; no broker; no discriminatory adsDoes NOT apply to disability; Race ALWAYS covered
Religious org.Non-commercial; may limit to membersRacial discrimination is NEVER exempt
Senior housing55+ or 62+; occupancy policies enforcedMust be bona fide senior community
ForumJurisdictionStatute of Limitations
HUDFederal complaints1 year
State agencyState complaintsVaries by state
CourtPrivate civil actionTypically 2 years
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NAR CODE OF ETHICS (KEY ARTICLES)

  • Article 1: Put client interests first (fiduciary duty to clients)
  • Article 17: Arbitrate compensation disputes with other members

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MATERIAL FACT DISCLOSURE

Definition: Information affecting buyer's decision or price

Mandatory disclosure to ALL parties (clients AND non-clients):

  • Known defects in property
  • Environmental hazards (known)
  • Stigmatized property (varies by state)

"As is" does NOT waive seller's duty to disclose known material defects.

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LEAD-BASED PAINT (PRE-1978 RESIDENTIAL)

  • Form required: Yes (not waivable)
  • Pamphlet: Required with disclosure
  • Inspection window: 10 days (waivable by buyer)
  • Records retention: 3 years
  • Applies to: Sales + long-term rentals

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PROPERTY MANAGEMENT BASICS

  • License required in most states
  • Habitability duty: Landlord must maintain safe, habitable property
  • Security deposit rules: Proper accounting, interest, return timelines (varies by state)
  • Entry notice: Proper notice required (typically 24–48 hours, except emergency)

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QUICK DECISION RULES

✓ Always negotiable: Commissions ✓ Always disclose: Known material defects (even if "as is") ✓ Always exempt from Fair Housing: None—except Mrs. Murphy & religion (but NOT for race) ✓ Always required in writing: Listing agreements, buyer rep agreements, lease >1 year ✓ Always needed before touring: Written buyer-broker agreement (per NAR 8/17/24 settlement) with compensation amount & MLS non-publication statement

Aligned to the PSI / Pearson VUE national real estate outline.

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PracticeFair Housing