What background knowledge is needed for this Practice Of Real Estate question?

The Fair Housing Act was passed in 1968, just one week after the assassination of Dr. Martin Luther King Jr., as part of the Civil Rights Act of 1968. During congressional debates, legislators struggled with the question of whether to force private homeowners renting rooms in their own homes to accept tenants against their personal preferences, and the Mrs. Murphy exemption was the compromise solution. Over the decades, courts have consistently reinforced that this exemption has hard limits — most critically, the Civil Rights Act of 1866 (42 U.S.C. § 1982), which was passed after the Civil War, has been interpreted by the Supreme Court in Jones v. Alfred H. Mayer Co. (1968) to prohibit all racial discrimination in property transactions with no exceptions.

What is a good way to remember the answer to this Practice Of Real Estate question?

Picture 'Mrs. Murphy' as a sweet elderly landlady living in her four-unit brownstone — she can choose her housemates like family, BUT she can never, ever hang a 'No [race] allowed' sign because the Civil War settled that question permanently. Remember the magic numbers: 4 units or fewer, owner must live there, and RACE is always off-limits. Think: 'Murphy's Law for landlords — everything is allowed EXCEPT race, and don't advertise your bias.' Visualize Mrs. Murphy in her four-unit building, remembering the exemption allows her preferences except for racial discrimination.

What exam tip applies to this Practice Of Real Estate question?

When you see this question on the exam, immediately recall that this is one of the few Fair Housing Act questions where the answer is a proper name, not a legal category — 'Mrs. Murphy' is the only named exemption in fair housing law, which makes it highly testable. Always pair your answer with the critical limitation: the exemption never applies to race (Civil Rights Act of 1866) and never permits discriminatory advertising, as these two exceptions are frequently tested as follow-up questions.

How does this Practice Of Real Estate concept apply in real world practice?

Consider Rosa, a 70-year-old widow who owns a three-unit row house in Baltimore, lives on the first floor, and rents the upper two apartments. Under the Mrs. Murphy exemption, Rosa may legally decline to rent to a tenant based on religion or national origin because she is an owner-occupant of a building with four or fewer units. However, if Rosa posts a 'No Black tenants' sign in her window or refuses to rent to an African American applicant, she is fully liable under the Civil Rights Act of 1866 regardless of the exemption, and she could face federal civil rights litigation with no exemption defense available.

Practice Of Real EstateFair_housingHARD

The Fair Housing Act's exemption for owner-occupied buildings with 4 or fewer units is called the:

Correct Answer

B) Mrs. Murphy exemption

The 'Mrs. Murphy exemption' allows owner-occupied buildings with 4 or fewer units to be exempt from certain Fair Housing Act provisions. However, this exemption does NOT apply to racial discrimination (due to the Civil Rights Act of 1866) or if discriminatory advertising is used.

Answer Options

De minimis exemption

Mrs. Murphy exemption

Small landlord exemption

Residential exemption

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Practice Of Real Estate Questions

The Fair Housing Act's exemption for owner-occupied buildings with 4 or fewer units is called the:

Why This Is the Correct Answer

Why the Other Options Are Wrong

Deep Analysis of This Practice Of Real Estate Question

Background Knowledge for Practice Of Real Estate

Real World Application in Practice Of Real Estate

Common Mistakes to Avoid on Practice Of Real Estate Questions

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