An Indiana property owner owns a single-family home and rents it out. The owner advertises the rental using a sign in the front yard that states 'No Section 8.' The owner does not use a broker and owns only this one rental property. Which statement best describes the fair housing implications under federal law?
Correct Answer
A) The owner is fully subject to the Fair Housing Act because the exemption does not apply when discriminatory advertising is used.
Under the Fair Housing Act (42 U.S.C. § 3603(b)(1)), a private individual who owns no more than three single-family homes and does not use a broker may be exempt from certain rental restrictions. However, this exemption explicitly does NOT apply if the owner uses discriminatory advertising. The 'No Section 8' sign in the yard constitutes advertising, and discriminatory advertising removes the exemption. Therefore, the owner loses the exemption and is fully subject to the Act.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
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