A property owner in Edina, Minnesota owns a duplex and lives in one unit while renting the other. She tells her real estate agent she prefers to rent only to single women because she feels safer. The agent knows this preference violates fair housing law. However, the property owner claims she qualifies for an exemption because she is an owner-occupant of a small rental property. Under the Minnesota Human Rights Act, which of the following BEST describes whether an exemption applies?
Correct Answer
D) An exemption applies only if the owner does not use a real estate agent or broker in the rental transaction
Under the federal Fair Housing Act, the 'Mrs. Murphy' exemption allows owner-occupants of buildings with four or fewer units to discriminate in rental — BUT only if they do not use a real estate broker or agent and do not use discriminatory advertising. Minnesota's Human Rights Act (Ch. 363A) has a similar limited exemption for owner-occupants of small properties (typically two-unit owner-occupied buildings), but the exemption is forfeited the moment a real estate agent or broker is used in the transaction. Since the property owner is using a real estate agent, the exemption does not apply, and she must comply with fair housing law.
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Related Topics & Key Terms
Key Terms:
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.
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.
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