A Washington property owner rents out rooms in her personal residence, which has four bedrooms. She lives in the home and rents three rooms to tenants. She refuses to rent to a prospective tenant because of the tenant's sex. The prospective tenant files a complaint under the federal Fair Housing Act. Which of the following best describes the owner's legal position?
Correct Answer
A) The owner is fully exempt from the Fair Housing Act under the 'Mrs. Murphy' exemption because she lives in the building and it has four or fewer units
The federal Fair Housing Act includes the 'Mrs. Murphy' exemption (42 U.S.C. § 3603(b)(2)), which exempts owner-occupied buildings with four or fewer dwelling units from most provisions of the Act. A single-family home where the owner lives and rents out rooms qualifies as an owner-occupied dwelling with four or fewer units (the owner's room counts as one unit). Under this exemption, the owner may decline to rent to a prospective tenant based on sex — provided she does not use a real estate agent or broker and does not use discriminatory advertising. Note: The exemption does NOT apply to race discrimination (Civil Rights Act of 1866 still applies), but sex discrimination is covered by the exemption in this scenario.
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Key Terms:
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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.
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