Patricia owns a four-unit residential building in Hoboken and lives in one of the units. She wants to select her next tenant without using a real estate agent and without advertising. She tells a neighbor she will only rent to a single person because she does not want families with children in the building. Under the New Jersey Law Against Discrimination, Patricia's tenant selection policy is:
Correct Answer
A) Unlawful because the NJ LAD does not provide an owner-occupant exemption comparable to the federal Fair Housing Act's exemption for small owner-occupied buildings
This is a key distinction between federal law and NJ law. The federal Fair Housing Act provides an exemption for owner-occupied buildings of four or fewer units rented without a broker and without discriminatory advertising (the 'Mrs. Murphy' exemption). However, the NJ LAD does not contain an equivalent broad exemption. New Jersey's statute is more protective of tenants. Familial status is a protected class under the NJ LAD, and Patricia's blanket refusal to rent to families with children violates the LAD regardless of her owner-occupant status in a four-unit building.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
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