Washington Real Estate Fundamentals
Lesson 15:
Civil Rights and
Fair Housing
© 2011 Rockwell Publishing
Introduction
Federal and state laws prohibit discrimination:
 based on race, religion, sex, and other
characteristics
 in almost all real estate transactions
Particular laws vary in terms of:
 protected groups
 types of activities and transactions
covered
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Federal Antidiscrimination Laws
Civil Rights Act of 1866
Civil Rights Act of 1866:
 prohibits discrimination on basis of race
or color
 applies to any type of property
transaction
 personal or real property
 residential or commercial property
 improved or unimproved property
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Federal Antidiscrimination Laws
Civil Rights Act of 1866
Act was passed right after Civil War.
Not widely used until after 1968 Supreme
Court decision Jones v. Mayer:
 Court held act prohibits “all racial
discrimination, private or public, in the
sale and rental of property.”
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Civil Rights Act of 1866
Remedies
Remedies available to plaintiff who wins
lawsuit under 1866 act:
 injunction (order to stop a violation)
 actual damages (to compensate plaintiff)
 punitive damages (additional amount as
penalty)
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Federal Antidiscrimination Laws
Civil Rights Act of 1964
Civil Rights Act of 1964 prohibits discrimination:
 based on race, color, religion, or national
origin
 in programs and activities that receive
financial assistance from federal
government
Little impact on housing discrimination,
because FHA and VA loans excluded from law.
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Federal Antidiscrimination Laws
Civil Rights Act of 1968
Title VIII of Civil Rights Act of 1968 is better
known as the Fair Housing Act.
Applies to:
 residential property
 vacant land to be used for residential
construction
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Fair Housing Act
Scope of law
In regard to residential property, Fair Housing
Act prohibits discrimination in:
 sales
 leasing
 advertising
 lending
 brokerage
 other services
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Fair Housing Act
Scope of law
Act prohibits discrimination based on:
 race
 color
 religion
 sex
 national origin
 disability
 familial status
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Fair Housing Act
Exemptions
Act applies to majority of residential
transactions, but four types are exempt:
 single-family home for sale or rent by
owner
 owner-occupied rental
 property owned by religious
organization
 lodgings run by private club
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Fair Housing Act
Exemptions: single-family home
Doesn’t apply to sale or rental of single-family
home by private individual if:
 owns no more than 3 such homes
 no real estate agent employed
 no discriminatory advertising used
If owner not most recent occupant, exemption
may be used only once every 24 months.
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Fair Housing Act
Exemptions: owner-occupied rental
Doesn’t apply to rental of room or unit in
dwelling with up to four units if:
 owner resides in dwelling, or one of the
units
 no real estate agent employed
 no discriminatory advertising used
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Fair Housing Act
Exemptions: religious organization
Religious organization dealing with own
property may limit occupancy to or give
preference to members.
 Transactions must be noncommercial.
 Membership can’t be restricted based on
race, color, or national origin.
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Fair Housing Act
Exemptions: private club lodgings
Lodgings belonging to private club may limit
occupancy to or give preference to members,
as long as lodgings are not:
 operated for commercial purpose
 open to general public
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Fair Housing Act
Exemptions usually irrelevant
Fair Housing Act exemptions don’t matter:

If discrimination based on race.
 1866 Act applies in all transactions.

Whenever real estate licensee involved.
 Agents never allowed to discriminate.

In Washington State.
 State law has narrower exemptions for
real estate transactions.
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Fair Housing Act
Display of fair housing poster
Poster must be displayed at any place of
business involved in sale, rental, or financing
of dwellings:
real estate firms
 mortgage lenders
 apartment buildings
 condominiums
 model homes in subdivisions

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Fair Housing Act
Prohibited actions

Refusing to rent or sell residential property
after receiving good faith offer.

Refusing to negotiate for sale or rental of
residential property, or otherwise making it
unavailable.

Changing terms of sale or lease for different
potential buyers or tenants.
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Fair Housing Act
Prohibited actions, continued

Using advertising that indicates a
preference or intent to discriminate.

Representing that property is not available
for inspection, sale, or rent when it is in fact
available.

Using discriminatory criteria when making a
housing loan.
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Fair Housing Act
Prohibited actions, continued

Limiting participation in an MLS or similar
service.

Coercing, intimidating, threatening, or
interfering with anyone on account of
enjoyment, attempt to enjoy, or
encouragement or assistance of others in
enjoying rights granted by Fair Housing Act.
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Fair Housing Act
Prohibited actions, continued
Fair Housing Act also prohibits these
discriminatory practices:
 blockbusting
 steering
 redlining
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Discriminatory Practices
Blockbusting
Blockbusting: When someone tries to induce
homeowners to sell by predicting that:
 members of minority groups will be
moving into neighborhood
 property values and quality of life will
suffer as a result
Also called panic selling.

Blockbuster profits from commissions on
sales or by purchasing homes cheaply.
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Discriminatory Practices
Steering
Steering: Channeling prospective buyers
or tenants to or away from particular
neighborhoods:
 based on race, ethnicity, or another
protected characteristic
 to maintain or change character of
neighborhoods
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Discriminatory Practices
Redlining
Redlining: When lender refuses to make
mortgage loans in a particular neighborhood
because of its racial or ethnic composition.
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Fair Housing Act
Protected classes added in 1988
1988 amendments to Fair Housing Act added
two more protected classes:
 disability
 familial status
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Fair Housing Act
Disability
Disability (handicap): Fair Housing Act
prohibits discrimination based on disability,
defined as:
 physical or mental impairment
 that substantially limits one or more
major life activities
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Disability
Scope of protected class
Included under disability protection (examples):
 chronic alcoholism
 mental illness
 HIV/AIDS
Not included:
 direct threat to health or safety of others
 currently using controlled substances
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Disability
Reasonable accommodations
For disabled tenants, landlord must:
 make reasonable exceptions to rules
 allow reasonable modifications to property:
 at tenant’s own expense
 if necessary for full use & enjoyment
Tenant may be required to restore property to
original condition at end of tenancy.
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Disability
Wheelchair accessibility
Act’s wheelchair accessibility rules apply to
residential buildings with four or more units
built since 1991.
 Entryways, hallways, kitchens, and
bathrooms must be designed to
accommodate wheelchairs.
 But if building has no elevator, units above
ground floor do not have to be wheelchairaccessible.
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Fair Housing Act
Familial status
Familial status: Refers to adults who have one
or more children under 18 living with them.
 Illegal to refuse to rent or sell to someone
because:
 she is pregnant
 he or she has children
 he or she is about to adopt or gain
custody of children
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Familial Status
Exemption: housing for older persons
Act allows discrimination based on familial
status in “housing for older persons”:
 developed under government program to
assist elderly,
 intended for and solely occupied by persons
62 or older, or
 adheres to policies demonstrating intent to
house persons 55 or older, if 80% of units
occupied by at least one person who is 55+.
© 2011 Rockwell Publishing
Fair Housing Act
Enforcement
Within one year after discrimination,
aggrieved party may file:

lawsuit in state or federal court, or

complaint with HUD’s Office of Fair
Housing and Equal Opportunity.
In states with similar fair housing laws, HUD
may refer complaint to state agency
(Washington Human Rights Commission).
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Enforcement
Procedures after complaint filed
HUD investigates complaint, tries to negotiate
conciliation agreement between parties.
If no agreement:
 Either party may move case to federal
court.
 Otherwise, administrative hearing held:
 HUD attorneys litigate for complainant
 administrative law judge decides case
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Enforcement
Remedies and penalties

Injunction
 order to stop discriminatory activity
 order to take affirmative steps to correct
violation

Compensatory damages

Punitive damages (court), or civil penalty
(administrative law judge)

Attorney’s fees
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Enforcement
Pattern or practice cases
If case involves “pattern or practice” of
discrimination, U.S. Attorney General may file
suit in federal court.
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Summary
Federal Antidiscrimination Laws
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•
•
•
•
•
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Civil Rights Act of 1866
Civil Rights Act of 1964
Fair Housing Act
Steering
Blockbusting
Redlining
Disability or handicap
Familial status
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Federal Antidiscrimination Laws
In addition to laws covered so far, federal
antidiscrimination laws include:

Equal Credit Opportunity Act (ECOA)

Home Mortgage Disclosure Act (HMDA)

Americans with Disabilities Act (ADA)
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Other Federal Laws
Equal Credit Opportunity Act
ECOA applies to all credit transactions and
prohibits discrimination based on:
 race
 color
 religion
 national origin
 sex
 marital status
 age
 receipt of public assistance
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Other Federal Laws
Home Mortgage Disclosure Act
HMDA helps detect redlining.
 Large lenders required to file annual
report on residential mortgage lending:
 number of loans made or purchased
 type of loans (FHA, VA, other)
 loan amounts
 location of properties
Government investigates lenders that made no
loans or few loans in certain neighborhoods.
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Other Federal Laws
Americans with Disabilities Act
ADA is 1992 law intended to ensure disabled
people equal access to public facilities.
Disability: Physical or mental impairment
that substantially limits one or more major
life activities.
 Public accommodation: Nonresidential
place owned, operated, or leased by private
entity and open to public, whose operation
affects commerce.

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Other Federal Laws
Americans with Disabilities Act
Examples of public accommodations: real
estate offices, retail stores, restaurants, banks,
doctor’s offices
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Americans with Disabilities Act
Requirements
If “readily achievable” in a public
accommodation:
 architectural and communications
barriers must be removed
 auxiliary aids and services must be
provided
New commercial construction must be
accessible to the disabled, unless structurally
impractical.
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Summary
Other Federal Laws
•
•
•
•
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Equal Credit Opportunity Act
Home Mortgage Disclosure Act
Americans with Disabilities Act
Disability
Public accommodation
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State Antidiscrimination Laws
Washington’s antidiscrimination laws include:

Washington Law Against Discrimination

Washington Fair Lending Act

provisions of real estate license law
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Washington Law Against Discrimination
Protected classes
 Race
 Creed
 Color
 National origin
 Sex
 Marital status
 Familial status
 Sexual orientation
 Sensory, physical, or
mental disability
 Use of trained guide dog
or service dog
 Honorably discharged
veteran or military status
© 2011 Rockwell Publishing
Washington Law Against Discrimination
Scope
Prohibits discrimination in:
 employment
 insurance
 credit transactions
 public accommodations
 real estate transactions
Applies to all real estate, not just housing.
 Sale, appraisal, exchange, purchase,
rental or lease, financing, brokerage.
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Washington Law Against Discrimination
Prohibited actions
Actions prohibited in regard to real estate
transactions include:
 refusing to engage in a transaction
 discriminating in terms or conditions
 discriminating in providing services or
facilities
 refusing to receive or failing to transmit a
bona fide offer
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Washington Law Against Discrimination
Prohibited actions, continued
refusing to negotiate
 representing that property is not available for
inspection, sale, or lease when it is available
 failing to advise a prospect about or refusing
to allow a prospect to inspect a listing
 discriminating in sale or rental of a dwelling,
making a dwelling unavailable, or otherwise
denying a dwelling

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Washington Law Against Discrimination
Prohibited actions, continued
advertising or signs that directly or indirectly
indicate an intent to discriminate
 application forms, records, or inquiries that
directly or indirectly indicate an intent to
discriminate
 offering, soliciting, accepting, or retaining a
listing with the understanding that a person
may be discriminated against
 expelling a person from occupancy

© 2011 Rockwell Publishing
Washington Law Against Discrimination
Prohibited actions, continued
discriminating in negotiating, executing, or
financing a transaction
 discriminating in negotiating or executing any
services for a transaction
 blockbusting
 inserting discriminatory provisions in a
document or attempting to honor them
 discriminating by denying credit, increasing
fees, requiring collateral, or other credit terms

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Washington Law Against Discrimination
Exemptions

Student housing: discrimination based on
sex, marital status, or familial status
allowed.

Private club run by religious organization:
discrimination based on religion allowed.

Housing for older persons: discrimination
based on familial status allowed.
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Washington Law Against Discrimination
Exemptions
No exemptions for sellers or landlords in
ordinary transactions.
One exception:
 Person may deny reasonable
modifications when arranging to share
dwelling unit he or she occupies:
 homeowner renting room in own house
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Washington Law Against Discrimination
Enforcement
Person who feels he or she has been
discriminated against may file complaint with
Human Rights Commission.
 Complaint related to real estate must be
filed within one year after incident.
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Washington Law Against Discrimination
Enforcement

Investigation followed by conference,
conciliation, and persuasion.

If unsuccessful, administrative hearing.

Possible remedies:
 cease and desist order
 affirmative relief
 actual damages
 civil penalty
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State Antidiscrimination Laws
Washington Fairness in Lending Act
Prohibits redlining: denying single-family
home loans or varying loan terms based on
neighborhood.
 Doesn’t prevent lender from using sound
underwriting practices based on:
 borrower’s creditworthiness
 property’s value

Does prohibit use of lending standards
with no economic basis.
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State Antidiscrimination Laws
Real estate license law
Licensee’s violation of any antidiscrimination
law also violates license law and is grounds
for disciplinary action.
Possible sanctions:
 license suspension or revocation
 fines
 completion of course on civil rights
 gross misdemeanor charges
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Summary
State Antidiscrimination Laws
• Washington Law Against Discrimination
• Washington Fairness in Lending Act
• Real estate license law
© 2011 Rockwell Publishing