Chp 19

Employment by Brokers

It is illegal for a broker to discriminate in hiring decisions or in regard to commission splits, work assignments, or other terms and conditions of employment.

Advertising

It is illegal to use advertising that indicates a preference or an intent to discriminate. Sending advertisements only to particular neighborhoods, or advertising only in particular newspapers, may be considered discriminatory.

MLS Practices

Multiple listing services may not restrict membership or limit services on a discriminatory basis or with a discriminatory effect.

Housing Financial Discrimination Act (or Holden Act)

The Housing Financial Discrimination Act (or Holden Act) prohibits redlining. A lender may not deny mortgage loans or impose stricter terms based on the racial or ethnic composition of the neighborhood where the security property is located.

Real Estate License Law

The Real Estate Law prohibits licensees from engaging in discriminatory behavior, which can be grounds for license suspension or revocation. The Commissioner's regulations include a list of prohibited discriminatory acts.

Unruh Civil Rights Act

The Unruh Civil Rights Act prohibits all arbitrary discrimination by business establishments, including discrimination on the basis of sex, race, color, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation, or (in housing transactions) age.

Zoning

Zoning laws that have a disparate impact on a protected class have been held to violate antidiscrimination laws.

Public accommodations

A public accommodation is any place owned, operated, or leased by a private entity and open to the public for use in commerce. This includes real estate brokerage offices.

Enforcement

A violation of the Fair Employment and Housing Act may be heard in an administrative hearing by the Department of Fair Employment and Housing, or in a superior court. Violators may be required to sell or rent the property in question or a comparable property. They may also be required to pay actual damages and civil penalties.

Sate Action

Antidiscrimination laws were originally interpreted to prevent only discriminatory actions by a government or an official. More recent statutes and case law prohibit discriminatory actions by private parties as well

Enforcement

Fair Housing Act violations may be addressed by filing a complaint with HUD, or by filing a lawsuit in state or federal court. Possible remedies include compensatory damages, injunctions, and civil penalties.

Selling or Renting

It is illegal to refuse to sell or rent after receiving a bona fide offer if the refusal is based on the offeror's race, religion, or another protected characteristic. It's also illegal to refuse to take an offer or application or negotiate terms if the reason for the refusal is discriminatory.

Lending

Lending discrimination can take many forms, including applying different underwriting criteria to different loan applicants or charging borrowers different fees based on race or ethnic background.

Redlining

Redlining is the refusal to make loans in a particular neighborhood based on its racial or ethnic composition, in violation of the Fair Housing Act.

Civil Rights Act of 1866

The 1866 Civil Rights Act prohibits discrimination on the basis of race or color in the sale or lease of any type of real property. A person who is discriminated against in violation of this law may file suit in federal court.

Americans with Disabilities Act

The Americans with Disabilities Act prohibits discrimination on the basis of disability in any place of public accommodation. Architectural barriers must be removed, auxiliary aids provided, and reasonable modifications made, so long as they are readily achievable.

Equal Credit Opportunity Act

The Equal Credit Opportunity Act prohibits discrimination against borrowers in all credit transactions on the basis of race, color, religion, national origin, sex, marital status, age, or receipt of income from public assistance.

Fair Employments and Housing Act

The Fair Employment and Housing Act (or Rumford Act) prohibits discrimination in the sale or lease of housing in California, on the basis of race, color, religion, sex, sexual orientation, marital status, national origin, ancestry, familial status, source of income, or disability.

Exemptions

The Fair Housing Act exempts certain transactions: some sales or rentals by owners of single-family homes; rentals in owner-occupied dwellings; and lodgings in accommodations owned by a religious organization or private club. Also, housing designated for older persons is exempt from the rules concerning discrimination based on familial status.

Blockbusting

The Fair Housing Act prohibits blockbusting, which refers to trying to induce homeowners to list or sell by telling them that minorities are moving into the neighborhood.

Steering

The Fair Housing Act prohibits steering, which occurs when a real estate agent directs buyers or renters into or away from a particular neighborhood based on race or another protected class.

Fair housing Act Requirements

The Fair Housing Act was amended in 1988 to prohibit discrimination on the basis of handicap. These amendments require landlords to make reasonable accommodations and allow reasonable modifications to enable a handicapped tenant to use and enjoy a rental unit.

Home Mortgage Disclosure Act

The Home Mortgage Disclosure Act requires large institutional lenders to disclose data annually about where they made mortgage loans, so that federal investigators can look for neighborhoods where redlining might be occurring.

right to sue

The right to sue under antidiscrimination laws extends beyond the actual victims of discriminatory acts. It also extends to government agencies, fair housing organizations, and testers.

Fair Housing act

Title VIII of the Civil Rights Act of 1968 (better known as the Federal Fair Housing Act) prohibits discrimination in the sale or lease of residential property, on the basis of race, color, national origin, religion, sex, handicap, or familial status.

reasonable accommodations

Under the Fair Employment and Housing Act, landlords may be required to make reasonable accommodations for disabled tenants, if necessary for the tenants' use and enjoyment of a rental unit. This includes allowing a service animal or a companion animal in a "No Pets" building.