Fair Housing Act
The Fair Housing Act prohibits discrimination in housing based on protected classes. Explore how this law promotes equal opportunity in real estate.
Definition
The Fair Housing Act, enacted in 1968 and expanded in 1974 and 1988, is a federal law that prohibits discrimination in housing transactions based on race, color, national origin, religion, sex, familial status, or disability. The law applies to the sale, rental, and financing of dwellings and covers real estate agents, landlords, lenders, and property managers. Prohibited practices include refusing to rent or sell, setting different terms, steering buyers or tenants to certain neighborhoods, or misrepresenting availability. The act empowers victims to file complaints with the U.S. Department of Housing and Urban Development (HUD) or sue in federal court. Compliance ensures fair and equal housing opportunities for all.
Why It Matters
A seller who writes "perfect for a young couple" in a listing has created federal exposure whether or not they meant anything by it. Washington's Law Against Discrimination reaches further than the federal act, covering sexual orientation, marital status, veteran status, and source of income, so refusing a tenant because their rent comes from a voucher is a violation here. Remedies include actual damages and the other side's attorney fees.
Examples
A for-sale-by-owner ad reading "ideal for a Christian family" draws a HUD complaint even though the seller accepted the first offer that came in.
An agent shows a family with three children listings in only one school district and redirects them away from the neighborhood they asked about, which is steering regardless of intent.
A Spokane landlord tells a caller the unit is taken and relists it the next morning; a fair housing tester has both calls documented.
Tips
Describe the property, never the buyer. "Three bedrooms, fenced yard" is safe. "Great for a growing family" is not.
Tie every offer decision to written terms you can point at: price, financing type, closing date, contingencies. A decision you cannot trace to a term is a decision you cannot defend.
When a buyer or tenant asks for a reasonable accommodation, answer in writing on the merits of the request rather than treating it as a negotiating move.
Related Terms
Truth in Lending Act (TILA)
The Truth in Lending Act requires lenders to disclose loan terms and costs. Discover how TILA protec...
FHA Loan
An FHA loan is a government-backed mortgage with low down payment requirements. Learn eligibility cr...
Down Payment
A down payment is the upfront portion of a home’s purchase price. Learn why down payments reduce loa...
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