PRACTICE & FAIR HOUSING — CHEAT SHEET

ANTITRUST (Sherman Act)

Per Se Violations (never allowed): |---|---| KEY RULE: Commissions always negotiable. Never discuss rates with competitors. ---

FAIR HOUSING — 7 PROTECTED CLASSES

Remember: R-CENSUS

• Race

• Color

• National Origin

• Religion

• Sex (incl. sexual orientation, gender identity in many states)

• Disability

• Familial Status (families with children <18; pregnant persons)

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PROHIBITED PRACTICES

|---|---|---| ---

FAIR HOUSING EXEMPTIONS

|---|---|---| ⚠️ RULE: Race is NEVER exempt from Fair Housing. ---

DISABILITY ACCOMMODATIONS

Reasonable Accommodation: Policy/procedure change (no cost to landlord)

• Example: Allow service animal despite "no pets" policy

Reasonable Modification: Physical alteration (tenant typically pays)

• Example: Accessible ramp installation

Accessible Design: Required for new construction (4+ units, post-1991) ---

ENFORCEMENT & TIMELINES

|---|---|---|

Violation	Example
Price fixing	Agreeing with competitors on commission rates
Market allocation	"You take north side, I'll take south side"
Group boycott	Refusing to work with a broker as punishment
Tie-in arrangement	"Use my title company or I won't list your property"
Practice	Definition	Red Flag
Steering	Directing buyers by protected class ("That neighborhood is for…")	Limiting showings by class
Blockbusting	Panic selling by implying class will move in ("Your neighborhood is changing…")	Fear-based solicitation
Redlining	Area-based loan denial or refusal to serve	Discriminatory underwriting
Discriminatory advertising	Ads suggesting class preference ("Peaceful community," "Near golf club")	Code words; photos/language
Exemption	Requirements	CRITICAL LIMITS
Mrs. Murphy	Owner-occupied 1–4 units; no broker; no discriminatory ads	Does NOT apply to disability; Race ALWAYS covered
Religious org.	Non-commercial; may limit to members	Racial discrimination is NEVER exempt
Senior housing	55+ or 62+; occupancy policies enforced	Must be bona fide senior community
Forum	Jurisdiction	Statute of Limitations
HUD	Federal complaints	1 year
State agency	State complaints	Varies by state
Court	Private civil action	Typically 2 years

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NAR CODE OF ETHICS (KEY ARTICLES)

• Article 1: Put client interests first (fiduciary duty to clients)

• Article 17: Arbitrate compensation disputes with other members

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MATERIAL FACT DISCLOSURE

Definition: Information affecting buyer's decision or price Mandatory disclosure to ALL parties (clients AND non-clients):

• Known defects in property

• Environmental hazards (known)

• Stigmatized property (varies by state)

"As is" does NOT waive seller's duty to disclose known material defects. ---

LEAD-BASED PAINT (PRE-1978 RESIDENTIAL)

• Form required: Yes (not waivable)

• Pamphlet: Required with disclosure

• Inspection window: 10 days (waivable by buyer)

• Records retention: 3 years

• Applies to: Sales + long-term rentals

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PROPERTY MANAGEMENT BASICS

• License required in most states

• Habitability duty: Landlord must maintain safe, habitable property

• Security deposit rules: Proper accounting, interest, return timelines (varies by state)

• Entry notice: Proper notice required (typically 24–48 hours, except emergency)

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QUICK DECISION RULES

✓ Always negotiable: Commissions ✓ Always disclose: Known material defects (even if "as is") ✓ Always exempt from Fair Housing: None—except Mrs. Murphy & religion (but NOT for race) ✓ Always required in writing: Listing agreements, buyer rep agreements, lease >1 year ✓ Always needed before touring: Written buyer-broker agreement (per NAR 8/17/24 settlement) with compensation amount & MLS non-publication statement