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Practice Of Real EstateFair HousingMEDIUM

Robert owns a single-family home in Brentwood and decides to sell it himself without using a real estate agent. He posts a sign in his yard that reads 'For Sale by Owner — No Section 8.' A prospective buyer who relies on housing vouchers files a complaint with the Tennessee Human Rights Commission. Which of the following most accurately describes the legal situation under Tennessee and federal fair housing law?

Correct Answer

A) Robert's sign is lawful because source of income is not a protected class under the federal Fair Housing Act or the Tennessee Human Rights Act.

As of current Tennessee law, source of income (including Section 8 housing vouchers) is NOT a protected class under the federal Fair Housing Act or the Tennessee Human Rights Act (Tenn. Code Ann. § 4-21-101 et seq.). Therefore, Robert's 'No Section 8' sign does not, on its face, violate Tennessee state fair housing law or federal fair housing law solely on the basis of source of income. Some local jurisdictions have added source of income as a protected class, but Tennessee has not done so at the state level. This is a nuanced but testable distinction.

Answer Options
A
Robert's sign is lawful because source of income is not a protected class under the federal Fair Housing Act or the Tennessee Human Rights Act.
B
Robert's sign violates the Tennessee Human Rights Act because 'No Section 8' language constitutes discrimination based on familial status.
C
Robert is exempt from fair housing laws because he is selling his own home without a broker.
D
Robert's sign may constitute discrimination based on race because Section 8 housing voucher recipients are disproportionately members of racial minority groups.

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Related Topics & Key Terms

Key Terms:

source_of_incomesection_8protected_classtennessee_human_rights_actfsbo

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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