A landlord in Edison, New Jersey owns a duplex and lives in one unit. He rents the other unit without using a real estate licensee and without placing any public advertisement. He tells a prospective tenant that he will not rent to her because she is divorced. The prospective tenant files a complaint under the NJ LAD. Which analysis most accurately reflects New Jersey law?
Correct Answer
A) The landlord has violated the NJ LAD because marital status is a protected class under New Jersey law and no exemption eliminates this protection in owner-occupied two-family dwellings
This question tests the critical distinction between the federal Fair Housing Act and the NJ LAD on two levels. First, marital status is a protected class under the NJ LAD, N.J.S.A. 10:5-4, but is NOT a protected class under the federal FHA. Second, the NJ LAD does not provide the same 'Mrs. Murphy' owner-occupant exemption for small buildings that the federal FHA provides. Even though the landlord lives in the duplex, rents without a broker, and placed no public advertisement, the NJ LAD still applies. The refusal based on the tenant's divorced status is a direct violation of the NJ LAD's marital status protections with no applicable exemption.
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Related Concepts
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FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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