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Practice Of Real EstateFair_housingMEDIUM

A Utah property owner sells her single-family home without using a real estate agent and sells only to a buyer she personally selected based on race. She believes she is exempt from the Fair Housing Act because she is selling her own home without an agent. Which statement best describes her legal situation?

Correct Answer

D) She is not exempt because race discrimination is never permitted under the Fair Housing Act regardless of exemptions

While the Fair Housing Act does contain limited exemptions for certain private sellers (the 'Mrs. Murphy' exemption for owner-occupied buildings with four or fewer units, and exemptions for certain private club housing), these exemptions explicitly do NOT apply when the discrimination is based on race. Under 42 U.S.C. § 3603(b), the exemptions are unavailable if the person makes any statement indicating a racial preference or uses any discriminatory advertising. Furthermore, the Civil Rights Act of 1866 (42 U.S.C. § 1982) prohibits racial discrimination in all property transactions with no exemptions whatsoever.

Answer Options
A
She is fully exempt because private sellers acting without agents are not covered by the Fair Housing Act
B
She is not exempt because the exemption requires the seller to use a licensed agent to qualify
C
She is exempt only if she owns fewer than four single-family homes and does not use discriminatory advertising
D
She is not exempt because race discrimination is never permitted under the Fair Housing Act regardless of exemptions

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Related Topics & Key Terms

Key Terms:

racefha_exemptionsfederal_fair_housingprivate_sellercivil_rights_act_1866

Related Concepts

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.

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.

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