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Gloria owns a single-family home in Grand Rapids, Michigan and decides to rent out one bedroom while continuing to live in the home. She tells a prospective tenant she will not rent to divorced individuals. The prospective tenant files a complaint under the Michigan Elliott-Larsen Civil Rights Act. Gloria argues she qualifies for the owner-occupied rooming house exemption. Which of the following is the most accurate analysis?

Correct Answer

A) Gloria's exemption claim may fail because marital status, which includes divorce, is a protected class under the Elliott-Larsen Act, and the owner-occupied exemption does not override the prohibition on discriminating based on marital status

The Michigan Elliott-Larsen Civil Rights Act (MCL 37.2502) includes marital status as a protected class in housing. While Michigan law does recognize a limited owner-occupied rooming house exemption (sharing living facilities with no more than two others), this exemption does not grant owners the right to discriminate based on all protected classes. Discriminating against divorced individuals constitutes discrimination based on marital status, which is a protected class unique to Michigan. The exemption is narrow and does not override core protected class prohibitions, particularly for a class as specifically defined as marital status under the Elliott-Larsen Act.

Answer Options
A
Gloria's exemption claim may fail because marital status, which includes divorce, is a protected class under the Elliott-Larsen Act, and the owner-occupied exemption does not override the prohibition on discriminating based on marital status
B
Gloria's exemption claim is valid because the owner-occupied rooming house exemption under Michigan law permits any tenant selection criteria the owner chooses
C
Gloria's exemption claim is valid because the Elliott-Larsen Act's owner-occupied exemption covers all housing decisions made by an owner living in the same dwelling, including tenant selection based on marital status
D
Gloria's exemption claim fails because the owner-occupied exemption under Michigan law does not apply when the owner uses a real estate licensee, but since Gloria is acting alone, she is fully exempt from the Elliott-Larsen Act

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Related Topics & Key Terms

Key Terms:

elliott_larsenmarital_statusowner_occupied_exemptionmichigan_specificcomplex_reasoning

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.

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