A property owner in Houma, Louisiana, rents out a room in her personal residence where she also lives. She refuses to rent to a male applicant, preferring a female roommate for privacy reasons. She did not use a real estate agent and did not place any discriminatory advertisement. Under Louisiana's Equal Housing Opportunity Act and applicable federal law, which of the following best describes the legal outcome?
Correct Answer
D) The owner is exempt from the federal Fair Housing Act under the single-family home and roomer exemptions, but may still be subject to Louisiana's Equal Housing Opportunity Act.
Under the federal Fair Housing Act (42 U.S.C. §3603(b)), the 'roomer exemption' (sometimes called the Mrs. Murphy exemption) applies when an owner rents rooms in a dwelling where the owner also resides, provided the owner does not use a real estate broker and does not publish a discriminatory advertisement. Under these conditions, the federal Fair Housing Act does not apply. However, Louisiana's Equal Housing Opportunity Act (La. R.S. 51:2601 et seq.) may have different or narrower exemptions. Candidates must recognize that state law can be more restrictive than federal law, and the federal exemption does not automatically shield the owner from state law liability. The safest and most accurate answer acknowledges the federal exemption while noting continued potential exposure under Louisiana state law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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