A licensed broker in Oklahoma manages a 12-unit apartment complex. She has a policy requiring all applicants to provide references from two prior landlords. A recent immigrant from Mexico applies and cannot provide two prior Oklahoma landlord references because he rented in Mexico before moving to the United States. The broker denies the application solely because the applicant cannot meet the two-reference requirement. The applicant files a fair housing complaint alleging national origin discrimination. Which of the following best analyzes the broker's potential liability?
Correct Answer
A) The broker may have liability under a disparate impact theory if the two-reference requirement disproportionately excludes recent immigrants and is not justified by business necessity
Fair housing law recognizes two theories of discrimination: disparate treatment (intentional discrimination) and disparate impact (a facially neutral policy that disproportionately harms a protected class without sufficient business justification). A two-prior-landlord-reference requirement may have a disparate impact on recent immigrants, who disproportionately lack domestic rental history, thereby screening out applicants based on national origin. Under fair housing principles applicable in Oklahoma through Title 25 O.S. §§ 1451-1466 and consistent with federal fair housing law, the broker could face liability if the policy is not justified by business necessity or if less discriminatory alternatives exist.
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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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