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Practice Of Real EstateFair_housingMEDIUM

A Nevada property owner who rents out a single-family home using a Nevada-licensed property manager tells the manager to reject any applicant who attends a specific religion's house of worship. The property manager refuses to follow this instruction. Which of the following best explains the property manager's legal obligation under the federal Fair Housing Act?

Correct Answer

C) The property manager must refuse the instruction because religion is a federally protected class and using a licensed agent eliminates any single-family home exemption.

Religion is one of the seven federally protected classes under the Fair Housing Act. While the FHA does contain a limited exemption for single-family home owners who rent without using a broker or agent and without discriminatory advertising, this exemption is lost when a licensed real estate agent or property manager is used. Because the property manager is a licensed Nevada agent, the single-family home exemption does not apply, and the manager is legally required to refuse the discriminatory instruction.

Answer Options
A
The property manager may follow the owner's instruction because single-family home rentals are exempt from the Fair Housing Act when managed by a licensed agent.
B
The property manager must follow the owner's instruction because the owner has the right to select tenants for a single-family home.
C
The property manager must refuse the instruction because religion is a federally protected class and using a licensed agent eliminates any single-family home exemption.
D
The property manager may follow the instruction only if the owner provides a written statement of the religious preference.

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Related Topics & Key Terms

Key Terms:

religionfederal_protected_classessingle_family_exemptionproperty_managementfair_housing_act

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