Fair Housing Act
Definition and meaning of Fair Housing Act in real estate.
The Fair Housing Act is a landmark federal law that prohibits discrimination in the sale, rental, financing, or advertising of housing based on protected characteristics. The law protects individuals against discrimination based on race, color, national origin, religion, sex, familial status, and disability.
In more detail
This legislation applies to almost all aspects of the residential real estate industry, including home sales, leasing, mortgage lending, and appraisals. Under the act, it is illegal to refuse to rent or sell housing, set different terms, or falsely state that housing is unavailable based on a protected class.
Real estate agents, landlords, and lenders must strictly adhere to these rules, and violations can result in significant civil penalties. Home buyers, renters, and housing professionals should be aware of these protections to ensure fair treatment in the market. Some states and municipalities have expanded on this federal law to include additional protected classes, such as sexual orientation or source of income.
Key facts
| Category | Legal, Titles & Closing |
|---|---|
| Protected classes | Race, color, national origin, religion, sex, familial status, disability |
| Applies to | Renting, selling, mortgage lending, and advertising |
| Enforced by | Department of Housing and Urban Development (HUD) |
A landlord cannot refuse to rent an apartment to a family simply because they have young children, as familial status is protected under the Fair Housing Act.
Frequently asked questions
Who is exempt from the Fair Housing Act?
Some exemptions exist, such as owner-occupied buildings with four or fewer units and single-family houses sold or rented without a broker, though advertising must still remain non-discriminatory.
What is familial status discrimination under the act?
Familial status discrimination occurs when a landlord or seller treats a household unfairly because it includes children under the age of eighteen or pregnant women.