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A Georgia licensee is reviewing which practices are prohibited under the federal Fair Housing Act. Which of the following is correct regarding prohibited conduct under the Act?

Correct Answer

A) Steering, blockbusting, discriminatory advertising, and refusals to rent or sell on a protected-class basis are all prohibited under the federal Fair Housing Act.

The federal Fair Housing Act (42 U.S.C. §§ 3604–3606) broadly prohibits multiple forms of housing discrimination, including steering (directing persons toward or away from neighborhoods based on protected class), blockbusting (inducing sales by representing that protected-class members are moving into an area), discriminatory advertising (making or publishing statements indicating a preference based on protected class), and outright refusals to rent or sell. These prohibitions apply to Georgia licensees in covered transactions.

Answer Options
A
Steering, blockbusting, discriminatory advertising, and refusals to rent or sell on a protected-class basis are all prohibited under the federal Fair Housing Act.
B
Blockbusting is prohibited, but steering based on familial status is permitted if the licensee is acting in the client's best interest.
C
Discriminatory advertising violates the Act only when it results in a completed transaction that causes measurable financial harm.
D
The owner-occupied exemption for single-family homes also exempts the owner from the Act's prohibition on discriminatory advertising.

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Related Topics & Key Terms

Key Terms:

georgiastate_portionfederal_fha_overlay_in_georgiaga_fair_housing

Related Concepts

Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.

Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.

Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.

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