Margaret owns four single-family homes in Columbia, South Carolina and rents them out. She does not use a real estate agent and does not advertise publicly. She tells a prospective tenant that she will not rent to him because of his race. The prospective tenant files a complaint with the South Carolina Human Affairs Commission. Which of the following best describes Margaret's legal exposure?
Correct Answer
D) Margaret is in violation because the private owner exemption for single-family homes applies only if she owns three or fewer such homes.
Under the federal Fair Housing Act (42 U.S.C. § 3603(b)), the private owner exemption for single-family homes applies only if the owner owns three or fewer such homes at any one time. Margaret owns four single-family homes, which exceeds the three-home limit, so she does not qualify for the exemption. South Carolina's fair housing law (S.C. Code Ann. §§ 31-21-10 et seq.) mirrors this federal framework. Because she owns four homes, she is subject to the full fair housing protections, and refusing to rent based on race is a violation.
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Related Topics & Key Terms
Key Terms:
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.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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