A property management company in Knoxville maintains a policy of requiring all applicants to submit to a credit check and earn at least three times the monthly rent. A prospective tenant who uses a wheelchair applies and is denied because he does not meet the income requirement. He files a complaint with the Tennessee Human Rights Commission alleging disability discrimination. Which statement most accurately describes the legal analysis?
Correct Answer
B) The company likely did not violate fair housing law if the income requirement is applied uniformly to all applicants regardless of disability status
A neutral, consistently applied financial qualification standard — such as requiring income of three times the monthly rent — does not constitute disability discrimination if it is applied uniformly to all applicants. Under the Tennessee Human Rights Act and the federal Fair Housing Act, disability is a protected class, but landlords may still enforce legitimate, non-discriminatory screening criteria. The key issue is whether the policy was applied in a discriminatory manner or whether the disability itself was the basis for denial. If the denial was solely due to failure to meet the income requirement applied equally to everyone, no fair housing violation occurred.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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