EstatePass
Practice Of Real EstateFair_housingHARD

A landlord in Eden Prairie has a written policy requiring all prospective tenants to earn at least three times the monthly rent in gross income. A single mother who receives both employment income and child support applies for an apartment. The landlord counts only her employment income and rejects her application, even though her combined income (employment plus child support) exceeds the three-times threshold. The landlord argues that child support is not 'earned income.' Under the Minnesota Human Rights Act, which of the following best analyzes this situation?

Correct Answer

C) The landlord may have violated the marital status protection under the Minnesota Human Rights Act by treating a single parent differently than a married applicant would be treated

Under the Minnesota Human Rights Act (Minn. Stat. Ch. 363A), marital status is a protected class. By refusing to count child support income — income that is more likely to be received by single (unmarried) parents than by married applicants — the landlord may be applying the income policy in a way that discriminates against the applicant based on her marital status. A married applicant's combined household income would typically all be counted. This disparate application of the income policy may constitute discrimination based on marital status under Ch. 363A.

Answer Options
A
The landlord's policy is lawful because income verification requirements are a legitimate business practice not subject to fair housing scrutiny
B
The landlord may have violated the familial status protection under the federal Fair Housing Act by treating the applicant differently because she has a child
C
The landlord may have violated the marital status protection under the Minnesota Human Rights Act by treating a single parent differently than a married applicant would be treated
D
The landlord's policy is lawful because child support is not considered income under Minnesota landlord-tenant law

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:

marital_statusincome_verificationdiscriminatory_policyminnesota_human_rights_act

Related Concepts

A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.

A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.

Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.

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