Real Estate Discrimination

Housing discrimination specifically refers to denying a person access to housing because they belong to a protected class. Landlords are allowed to deny housing on the basis of legitimate business reasons.

Some of the most common examples of legitimate business reasons include, but may not be limited to:

• Credit history;
• Income;
• References from past landlords; and
• Past behavior, such as damaging property.

Housing discrimination refers to a person being denied housing due to membership in a protected class and not for legitimate business reasons. Protected classes include:

• Race;
• National origin;
• Skin color;
• Religion or lack thereof;
• Sex assigned at birth;
• Age;
• Gender presentation and sexual orientation, in some states;
• Disability, whether physical or mental; and
• Pregnancy.

Multiple state and federal laws make it illegal to deny someone housing based solely on the above-mentioned characteristics. Biased treatment is considered unlawful during activities associated with housing, such as renting, buying, or lending. Additionally, selecting tenants based on their familial statuses, such as having children or their marital status, is prohibited.

Some of the most common examples of housing discrimination include:

• A landlord requiring that an interracial couple utilize application criteria that is more burdensome than what is required of other applicants;
• A bank refuses to provide loan information to a person based on their protected class;
• A real estate broker is acting on behalf of a contractor and publishes the availability of a newly built housing complex as being for white tenants only. Under these circumstances, both the broker and the contractor would be engaging in discriminatory behavior;
• A landlord advertising an apartment for sale and confirms with an inquiring couple on the phone that the unit is available. Then they say it can be viewed within the next hour. However, the couple arrives at the unit thirty minutes later, and the landlord sees that the couple is interracial. They are then told that the unit has since been rented to someone else; and
• A potential renter who is wearing clothing associated with a particular religion, such as a head covering, visits a leasing office in which it is clearly stated that there are units available. However, they are told that the signage is incorrect upon seeing their religious head covering.

What Is The Fair Housing Act?

As part of the Civil Rights Act of 1968, The Fair Housing Act (“FHA”) prohibits discrimination in the sale, rental, or financing of dwellings. This extends to other housing-related activities, including the dissemination of false information regarding the availability of housing.

An example of dissemination of false information would include incorrectly stating that there are no units available. Another example would suggest that people are looking to buy in one area instead of in another based on their race. Upon passing the Act, its central objective was to prohibit racial discrimination in the sales and renting of housing. However, it has since been extended to cover all protected classes.

The FHA applies to the following circumstances:

• Selling or renting real estate;
• Advertising real estate;
• Providing financial assistance for buyers or renters of real estate;
• Brokering or appraising real estate;
• Participating in real estate organizations;
• Intimidating, coercing, or threatening others in terms of their purchase or rental; and
• Interfering with a person’s right of enjoyment and use of housing rights solely based on discriminatory reasons.

Additionally, the Fair Housing Act makes it illegal to:

• Engage in mortgage lending discrimination;
• Harass people based on their protected class;
• Interfere with anyone who is exercising their FHA rights; and
• Retaliate against someone who has filed a fair housing complaint or assist in investigating a fair housing complaint.

However, it is imperative to note that there are four considerable exceptions to the Fair Housing Act:

1. Single-family homes, as long as:
   • The home is also rented or sold by the owner;
   • The owner does not own more than three homes at the time;
   • The advertising for the sale or rental was not discriminatory; and
   • The owner did not use a real estate or broker.
2. Rooms or units in a building with a maximum of four units, as long as the owner is living in one of those units.
3. Rooms or units that are owned either directly or indirectly by a religious organization. However, this is only true if a preference is given based on that membership, and membership in that religion is not restricted by race, color, or nationality.
4. Rooms or units that a private organization for non-commercial use owns, as long as preference is only given based on membership to that organization and is not restricted by race, color, or nationality.

Can The Seller Of Real Property Discriminate Against Potential Buyers?

A person subjected to class-based discrimination while attempting to purchase real property has both constitutional and statutory grounds to challenge the discrimination. The following are the most commonly invoked protections against discrimination in the purchase of real property:

• Equal Protection: Some of the earliest challenges to discrimination in selling property were based on the fourth amendment’s equal protection clause. However, there are two considerable challenges that a plaintiff bringing an equal protection challenge can face. The plaintiff must prove discriminatory intent, and discrimination must generally be clearly based on the purchaser’s belonging to a protected class;
• Civil Rights Act of 1866: This is the oldest federal regulation addressing discrimination associated with property sales. You can bring a claim of discrimination if the seller had discriminatory intent, but this act only applies to race and not other protected classes;
• Fair Housing Act: To reiterate, the federal Fair Housing Act prohibits discrimination in the sale or rental of dwellings. The act applies to all protected classes. Under this act, you only need to prove that the seller’s actions had a disproportionate impact on a protected class of people; and
• State and Municipal Anti-Discrimination Laws: Many state and municipal governments have enacted their own fair housing laws. They often provide broader protection than federal law, such as how some state and local laws provide for the protection of more classes. This includes many groups that are defined by sexual preference.

What Should I Do If I Have Been Unlawfully Denied Housing?

If you have been discriminated against or unlawfully denied housing, it is important that you begin by filing a complaint with the Office of Fair Housing and Equal Opportunity (“FHEO”), which is part of the Department of Housing and Urban Development (“HUD”).

Your complaint should include any facts that prove how you were violated. It will be reviewed by the HUD and could require a response from the accused party before the FHEO conducts an investigation. They will determine whether there is enough evidence to establish that a violation did indeed occur and will proceed accordingly.

It is important to note that complaints must be filed within one year of the last date of the alleged discrimination. Following an investigation, the FHEO will issue its findings regarding whether there is a reasonable cause to find that a violation has occurred. When the cause is established, the HUD or the Department of Justice will take legal action against the violator.

Do I Need A Lawyer For Help With Real Estate Discrimination?

Proving real estate discrimination is crucial, but can be considerably complicated. An experienced real estate lawyer can help you gather the necessary evidence to prove that you were discriminated against. Additionally, an attorney will help you understand your legal rights and options according to your state’s specific laws and will also be able to represent you in court, as needed, throughout the process.