A private club in Michigan owns a lodge with 12 residential units that it rents exclusively to its members. A non-member applies for a unit and is denied. The applicant files a complaint under the Michigan Elliott-Larsen Civil Rights Act. Which of the following best describes the likely outcome?
Correct Answer
B) The club may be exempt if it is a bona fide private club not open to the public and the housing is provided incident to club membership on a non-commercial basis
Both federal fair housing law and the Michigan Elliott-Larsen Civil Rights Act recognize a limited exemption for bona fide private clubs that are not open to the public and that provide housing incident to membership on a non-commercial basis. The club must be genuinely private and not use membership criteria as a pretext for discrimination based on a protected class. If these conditions are met, the club may lawfully restrict housing to its members.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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.
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