"Why do we have all these Fair Housing laws," is a common question from home buyers. At least it is one I have heard several times lately.
The question usually arises when we are discussing Section 8 of the NCAR Buyers Agency Agreement:
Or the question may arise when Buyers begin to ask pointed questions revolving around demographics of a neighborhood or community, which can easily edge into troubling territory under the law.
"Why?" Because, sadly, Fair Housing law is needed to protect people in the marketplace. Unfortunately, dreadful acts of discrimination have been perpetrated in the past, and still occur today. Even today, as we like to think we are more enlightened than in the past, people may experience discrimination in their pursuit of a home because of personal circumstances that are irrelevant to their ability to buy or rent.
They may have the "wrong" skin color, and actually the roots of Fair Housing Law are closely tied to the 1964 Civil Rights Act and the incredible struggles of the 1960's for all people to be treated like people.
Or the prospective buyer or tenant may experience discrimination due to a physical or mental handicap, or origination from another country, or even for being a single parent.
Therefore, the Federal Fair Housing Act and the North Carolina Fair Housing Act prohibit discrimination based on seven "Protected Classes":
Race, Color, Religion, Sex, National Origin, Handicapping Condition, and Familial Status, with very few exceptions.
In what form may this discrimination occur? There have been common enough occurences that discriminatory acts have been codified in a list on the HUD/OFHEO site:
What Is Prohibited?
In the Sale and Rental of Housing: No one may take any of the following actions based on 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.
In Mortgage Lending: No one may take any of the following actions based on race, color, national origin, religion, sex, familial status or handicap (disability):
My insertion: Can you imagine paying points or higher interest rates or "qualifying" for lower mortgages just because you were black? Such practices have been documented!
- Refuse to make a mortgage loan
- Refuse to provide information regarding loans
- Impose different terms or conditions on a loan, such as different interest rates, points, or fees !!!!!
- Discriminate in appraising property
- Refuse to purchase a loan or
- Set different terms or conditions for purchasing a loan. !!!!!!
In Addition: It is illegal for anyone to:
- Threaten, coerce, intimidate or interfere with anyone exercising a fair housing right or assisting others who exercise that right
- Advertise or make any statement that indicates a limitation or preference based on race, color, national origin, religion, sex, familial status, or handicap. This prohibition against discriminatory advertising applies to single-family and owner-occupied housing that is otherwise exempt from the Fair Housing Act.
Additional Protection if You Have a Disability..." Is in itself a very long discussion of landlord responsibilities, and available at the link above.
Furthermore, the real estate agent's license in North Carolina (and all other states) is strongly tied to conformance to legal standards of non-discrimination in real estate practice. The NC Real Estate Commission has a detailed discussion of Questions and Answers on Fair Housing on their web site to help agents and the public avoid issues.
Why do we have these laws? Why, oh, why, do we need these laws?
First in a series of "Never Answer the Same Question Twice."
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