What does the term Fair Housing mean?
The Fair Housing Act of 1968 forbids discrimination based on race, color, national origin, religious preference, sex, familial status, and handicaps. More recent state and local Fair Housing laws have tightened the rules that Realtors must follow even further. For example, if a seller doesn’t want to accept an offer from a gay couple, that is a violation of the Fair Housing laws. But even if a buyer has young children and requests to move into a neighborhood that has lots of families, an agent cannot follow those specific instructions without being in violation of the Fair Housing Act – that is discrimination based on familial status.
According to regulators, it is the price and features of a home that agents must concentrate on, not the neighbors.
Keeping with the theme of Fair Housing, real estate agents are not allowed to “steer” buyers to certain areas. Steering is the practice of trying to place buyers in areas based primarily on the racial and ethnic makeup of that area.
Blockbusting is another illegal practice. Blockbusting is the practice of scaring people about an area because of events or conditions that will “supposedly” hurt a neighborhood. Many decades ago, blockbusting occurred when homeowners felt threatened that an influx of minority groups would occur and affect the desirability of the neighborhood. These homeowners sold at low prices to get out quickly. Today, any form of blockbusting inevitably drives prices down as the perception is the area is “going downhill,” crime will rise, and home values will decline.
On the flip side, searching for a home based on school district is perfectly acceptable. Many buyers in the Lansdale area want a home that is in the North Penn School District. Many want to avoid districts such as Norristown based on reputation or “what they have heard.” Others will compare districts online which include statistics like graduation rates, spending per student, and SAT and PSSA scores and make selections based on their own analysis of the facts. For example, on a scale of 1-10, Education.com gives a test rating of 9 to North Penn SD and a 2 to Norristown SD. Public schools are not a protected class under the Fair Housing Laws.
So there are clear cut things that a Realtor can and cannot discuss with buyers and sellers when it comes to Fair Housing and ensuring there is no discrimination involved in a real estate transaction. Crime and Megan’s Law get a little fuzzier in terms of what is allowed and not allowed. That will be a topic for another blog.
~Lisa
Contact Scott Loper, Associate Broker, Realtor®, RE/MAX Realty Group at 215-513-1333 for help buying or selling a home in Lansdale, Harleysville, Hatfield, Souderton, Skippack, Collegeville, North Wales and the surrounding areas of Montgomery County of Pennsylvania. To Search for Homes For Sale in Montgomery County Click Here.
What does the term Fair Housing mean? - Copyright © 2011, The Scott LoperTeam, All rights reserved.
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The Scott Loper Team
Scott Loper - Associate Broker
Lisa Loper - Sales Associate
Gina Wherry - Sales Associate
RE/MAX Realty Group
439 Main Street
Harleysville, PA 19438
Ph: 215-256-1200 x-213
