Could Fair Housing exemptions encourage home owners who may be prejudiced to NOT use a Real Estate Agent?
Could some prosepctive home buyer's avoid FSBOs because a FSBO doesn't have to follow all the rules that an owner contracting with a real estate agent/broker has to follow?
FSBOs have a license to discriminate , however the owners should read all the rules specifically. If your home mortgage is backed by a federal guarantee..
The Fair Housing Act, as amended, applies to almost every kind of housing which does not fall within a statutory exemption. There are two principal exemptions:
1. owner-occupied housing for four or fewer families living independently of each other is exempt, except for discriminatory advertising practices.
2. the rental or sale of a single-family house by an owner who does not have an interest in more than three such houses, who has not sold a house within the previous 24 months, who does not use a real estate agent or broker to sell or rent the house, and who does not use a discriminatory advertisement, is exempt from the Act. The exemption applies only to the owner and not to any co-op or condominium association.
http://www.usdoj.gov/crt/housing/title8.htm
What I think:
I think true equality and fairness is when all rules apply without exception. I guess the rationale in excluding home owners selling their own home under rather broad stipulations from Fair Housing--is because then their rights would be violated.
FSBO's should take care in defining the "use of a Broker". If you are selling Broker protected--does that mean you are now technically using a broker? If you use a Limited Service MLS, and retaining the right to sell without paying a commission--you are using a broker (in my opinion--)
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