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Carlos is a private individual who owns three single-family rental homes in Trenton, New Jersey. He manages all three properties himself without using a real estate licensee. He places a classified advertisement in a local newspaper stating he prefers to rent to tenants without children. Under the New Jersey Law Against Discrimination, Carlos's advertisement is:

Correct Answer

A) Unlawful because the NJ LAD prohibits discriminatory advertising regardless of whether a broker is used or an exemption otherwise applies

Under the NJ LAD, N.J.S.A. 10:5-12, even where a limited exemption might otherwise apply to a small private landlord, discriminatory advertising is never permitted. The statute explicitly prohibits any notice, statement, or advertisement indicating a preference, limitation, or discrimination based on a protected class. Familial status is a protected class under the NJ LAD, and advertising a preference against tenants with children is a direct violation of the advertising prohibition.

Answer Options
A
Unlawful because the NJ LAD prohibits discriminatory advertising regardless of whether a broker is used or an exemption otherwise applies
B
Lawful because he owns fewer than four units and manages them without a broker
C
Lawful because familial status is not a protected class under the NJ LAD
D
Lawful because private landlords who manage their own properties are fully exempt from the NJ LAD's advertising requirements

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Related Topics & Key Terms

Key Terms:

LADdiscriminatory_advertisingfamilial_statusfair_housing_exemptionsadvertising_prohibition

Related Concepts

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

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