A landlord refuses to rent to a family with children, claiming the property is 'adults only.' This is legal ONLY if:
Correct Answer
B) The property qualifies as housing for older persons
The Fair Housing Act allows age-restricted housing (55+ or 62+) under the Housing for Older Persons exemption. To qualify, at least 80% of units must have one resident 55 or older, and the community must publish policies demonstrating intent to be housing for older persons.
Why This Is the Correct Answer
The Housing for Older Persons exemption under the Fair Housing Act specifically allows communities designed for seniors to restrict occupancy based on age, provided they meet certain criteria including having at least 80% occupied by persons 55 or older and publishing policies demonstrating their intent to be senior housing.
Why the Other Options Are Wrong
Option A: The landlord lives on the property
A landlord residing on the property does not create an exemption from fair housing laws. The Fair Housing Act applies regardless of whether the owner lives on-site or not.
Option C: The lease specifies no children
Lease agreements cannot override federal fair housing laws. A 'no children' clause in a lease is unenforceable under the Fair Housing Act unless the property qualifies for the Housing for Older Persons exemption.
Option D: The property has fewer than 4 units
The size of the property (fewer than 4 units) does not create an exemption from fair housing protections. Familial status protections apply regardless of property size.
Deep Analysis of This Practice Of Real Estate Question
This question addresses a critical area in real estate practice: fair housing protections. Discrimination based on familial status (families with children) is prohibited under the Fair Housing Act, with specific exemptions. Understanding these exemptions is essential for real estate professionals to avoid fair housing violations while properly advising clients. The question tests knowledge of the Housing for Older Persons exemption, which is one of the few exceptions to the general prohibition against familial status discrimination. To arrive at the correct answer, students must recognize that only certain age-restricted housing qualifies for this exemption. Option A is incorrect because a landlord's residence doesn't create an exemption. Option C is wrong because leases cannot override federal law. Option D is incorrect as property size alone doesn't qualify for an exemption. The challenge lies in understanding the specific requirements for the Housing for Older Persons exemption and recognizing it as the only valid exception among the options provided.
Background Knowledge for Practice Of Real Estate
The Fair Housing Act of 1968 prohibits discrimination in housing based on race, color, religion, sex, disability, familial status, or national origin. Familial status refers to households with children under 18 living with parents or legal guardians. The Housing for Older Persons exemption, established under the Housing for Older Persons Act of 1995, allows communities designed for seniors to restrict occupancy based on age. To qualify, communities must meet one of two options: either have at least 80% occupied by persons 55 or older and publish policies demonstrating intent to be senior housing, or be designated specifically for persons 62 or older with significant services and facilities.
Memory Technique
acronymOLD 55+
Remember the key elements of the Housing for Older Persons exemption: O - Occupancy by 80% seniors, L - Lawful exemption, D - Designated for seniors, 55+ - Minimum age requirement
Exam Tip for Practice Of Real Estate
When encountering questions about familial status discrimination, remember the only valid exception is the Housing for Older Persons exemption meeting specific requirements. Other options like property size or lease terms are common distractors.
Real World Application in Practice Of Real Estate
A property manager is reviewing applications for an apartment community and notices that several families with young children have applied. The owner has expressed a preference for 'quieter' residents and asks if they can implement a 'no children' policy. As the property manager, you must explain that such a policy would violate fair housing laws unless the property qualifies for the Housing for Older Persons exemption. If the property is already 80% occupied by persons 55 or older and has published policies demonstrating its senior status, you could explain this exemption to the owner.
Common Mistakes to Avoid on Practice Of Real Estate Questions
- •Confusing the small housing exemption with familial status exemption - believing smaller properties can discriminate against families
- •Assuming that any age restriction automatically qualifies under the Housing for Older Persons exemption
- •Thinking that lease terms can override federal fair housing protections
Related Topics & Key Terms
Related Topics:
Key Terms:
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