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Fair Housing & Ethics

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Fair Housing & Ethics — Quick Reference Cheat Sheet

Federal Fair Housing Act — 7 Protected Classes

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Memory device: R-C-N-R-S-F-D (Race, Color, National origin, Religion, Sex, Familial status, Disability)

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Texas Additional Protections (TRELA / Local)

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> Exam note: For the TX Broker exam, know the 7 federal classes. Local city ordinances are beyond state exam scope but brokers should be aware of them for practice.

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ADA Title III — Commercial Properties

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ADA Title III does NOT apply to: Private clubs, religious organizations, single-family homes, owner-occupied buildings with ≤ 4 units.

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NAR Code of Ethics — Key Articles

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Enforcement: NAR Code of Ethics is enforced by local Realtor® associations. TREC enforces state license law — these are separate bodies. Violations of the Code of Ethics can result in censure, fines, suspension, or expulsion from the association.

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Prohibited Practices Defined

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Advertising Rules

Prohibited:

  • Using language that limits or prefers applicants based on protected class ("perfect for a Christian family," "no children")
  • Using neighborhood descriptors that function as coded racial language
  • Showing only one race/demographic in property photos in a way that signals preference
  • Omitting property from MLS to avoid showing to certain groups

Required / Recommended:

  • Include the Fair Housing logo or "Equal Housing Opportunity" statement in advertising
  • HUD's Meacham logo (equal housing symbol) should appear in all printed marketing
  • Reasonable description of property features is acceptable; coded language is not

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Exemptions to Federal Fair Housing Act

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> Critical: The broker/agent involvement test — as soon as a licensed agent is involved, most individual exemptions disappear. A broker always owes fair housing compliance regardless of the client's wishes.

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Disability Accommodation Rules

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ClassAddedNotes
Race1968Original Civil Rights Act of 1866; no exemptions
Color1968Complexion, shade of skin
National Origin1968Country of birth, ancestry, ethnicity
Religion1968Includes lack of religion
Sex1974Includes gender; HUD guidance extends to gender identity/sexual orientation
Familial Status1988Families with children under 18; pregnant women; placement for adoption
Disability (Handicap)1988Physical or mental impairment that substantially limits a major life activity
ProtectionAuthority
No additional classes under state TRELATRELA mirrors federal classes
City of AustinAdds source of income, sexual orientation, gender identity, student status
City of DallasAdds sexual orientation, gender identity, source of income
City of HoustonAdds sexual orientation, gender identity
San AntonioAdds sexual orientation, gender identity
RequirementApplies To
"Places of public accommodation"Retail, offices, restaurants, hotels, theaters open to public
New construction (after Jan 26, 1993)Must be fully accessible
AlterationsMust make altered portions accessible "to the maximum extent feasible"
Existing buildingsMust remove barriers when "readily achievable" (no undue burden)
Residential housingCovered by Fair Housing Act (not ADA Title III)
ArticleCore Principle
Art. 1Protect and promote client's interests; treat all parties honestly
Art. 2No misrepresentation, concealment, or withholding of facts
Art. 3Cooperate with other brokers except when cooperation is not in client's best interest
Art. 9All agreements in writing; keep copies
Art. 10No discrimination based on race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity
Art. 11Competent only in areas of competence; disclose limitations
Art. 12Honest and truthful in communications; no false or misleading advertising
Art. 16No soliciting clients of other REALTORS® without consent
Art. 17Mediation/arbitration of disputes with other REALTORS®
PracticeDefinitionExample
SteeringDirecting buyers toward or away from neighborhoods based on protected classShowing Black buyers only homes in predominantly Black neighborhoods
BlockbustingInducing owners to sell by suggesting protected-class groups are moving in, causing property values to decline"You should sell now before the neighborhood changes"
RedliningRefusing to provide loans, insurance, or services in certain geographic areas based on race/national originBank refusing mortgages in certain ZIP codes
DiscriminationRefusing to rent, sell, or negotiate based on a protected classTelling a Hispanic family the unit is "already rented" when it isn't
ExemptionConditionsAgent Exception
Mrs. Murphy ExemptionOwner-occupied building with ≤ 4 units; owner lives in one unitExemption is LOST if a real estate agent or broker is used
Single-family homesOwner selling/renting without a broker; no discriminatory advertising; no more than 3 homes at a timeBroker involvement removes this exemption
Religious organizationsMay restrict occupancy to members of the same religion for non-commercial housingCannot restrict on basis of race, color, or national origin
Private clubsNon-commercial; lodging incidents to primary purposeCannot restrict on race, color, national origin
55+ senior housing80% of units occupied by at least one person ≥ 55; policies/procedures to verify agesFamilial status exemption only — all other classes still protected
62+ senior housingAll occupants must be 62 or olderFamilial status exemption only
RuleDetails
Reasonable accommodationMust be provided unless undue hardship; examples: allowing service animals in no-pet buildings, reserved accessible parking
Reasonable modificationTenant may make physical modifications at their own expense; landlord may require restoration on move-out (unless federally assisted housing)
Service animalsNot covered by ADA in residential; covered under Fair Housing Act — must be allowed even in no-pet buildings if disability-related
Emotional support animalsCovered by Fair Housing (not ADA) — documentation may be requested
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Quick Facts

  • Fair Housing complaints filed with HUD (within 1 year) or federal district court (within 2 years)
  • TX TREC may also receive complaints involving license law violations related to discrimination
  • Maximum civil penalties (first offense): $21,663 (as of recent HUD updates); subsequent violations higher
  • Brokers are vicariously liable for the discriminatory acts of their salespersons
  • "Testers" — individuals sent by fair housing organizations to document violations — are lawful and commonly used

Aligned to the Texas TREC broker exam content outline.

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