EstatePass
Practice Of Real EstateFair_housingHARD

A property management company in Pontiac has a policy of requiring all rental applicants to provide proof of current employment. An applicant who is retired and living on Social Security and pension income is denied because she cannot show current employment. She files a complaint under the Michigan Elliott-Larsen Civil Rights Act, arguing age discrimination. The management company argues the policy is neutral and applies to everyone equally. Which of the following best describes the legal analysis?

Correct Answer

B) The policy may constitute disparate impact discrimination against older persons, who are protected under the Elliott-Larsen Act

Under the Michigan Elliott-Larsen Civil Rights Act (MCL 37.2102), age (18+) is a protected class in housing. Even a facially neutral policy — one that does not explicitly mention age — can constitute illegal discrimination if it has a disparate impact on a protected class. A requirement for current employment disproportionately affects retired persons, who are more likely to be older. The applicant may argue that the policy has a discriminatory disparate impact on older persons protected by the Elliott-Larsen Act, even without proving intentional discrimination.

Answer Options
A
The policy is lawful because it applies equally to all applicants regardless of age
B
The policy may constitute disparate impact discrimination against older persons, who are protected under the Elliott-Larsen Act
C
The policy is unlawful only if the applicant can prove the company intended to discriminate based on age
D
The policy is lawful because retirement status is not a protected class under the Elliott-Larsen Act

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

elliott_larsendisparate_impactage_protectionneutral_policyfair_housing

Related Concepts

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.

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing