Fair Housing: What the NY Real Estate Exam Tests

Fair housing is one of the most tested topics. You must know the federal protected classes, NY's additional protections, and the specific prohibited practices.

Expect 5-7 questions. Protected classes and prohibited practices are tested on every exam.

Federal Protected Classes

The federal Fair Housing Act (1968, amended 1988) prohibits discrimination based on seven protected classes: race, color, religion, national origin, sex, familial status, and disability. Race and color have no exemptions whatsoever.

NY State Protected Classes

New York adds several protected classes beyond federal law: age, sexual orientation, gender identity or expression, marital status, military status, source of income, and lawful occupation. NY protections are broader and have fewer exemptions than federal law.

Prohibited Practices

Steering is directing buyers toward or away from neighborhoods based on protected class. Blockbusting is inducing panic selling by claiming a protected class is moving into a neighborhood. Redlining is refusing to lend in certain neighborhoods based on demographics.

Exemptions (and Their Limits)

The federal Fair Housing Act has limited exemptions for owner-occupied buildings with four or fewer units (Mrs. Murphy exemption), religious organizations, and private clubs. However, these exemptions do not apply to advertising discrimination, and they never exempt race or color.

Sample Exam Questions

Protected Classes

1. Which of the following is NOT a federally protected class under the Fair Housing Act?

ARace
BFamilial status
Age
DDisability

The seven federal protected classes are Race, Color, Religion, National Origin, Sex, Familial Status, and Disability. Age is NOT federally protected under the Fair Housing Act (though it is protected under NY State law).

Steering

2. 'Positive steering' is:

ARecommending neighborhoods based on a client's stated preferences
Directing buyers of a protected class only to neighborhoods already populated by that class
CProviding exceptional service to minority clients to overcome past discrimination
DShowing clients all properties in their price range

Positive steering, directing minorities only to minority neighborhoods because the agent believes they'll be more comfortable, is still illegal steering. Agents must show all suitable properties without regard to neighborhood demographics.

Disability

3. A landlord has a strict no-pets policy. A tenant with a documented disability requests permission to keep an emotional support animal. The landlord must:

ARefuse. The no-pets policy applies equally to all tenants
Allow the animal as a reasonable accommodation
CAllow the animal only if it's a trained service dog under ADA
DCharge an additional pet deposit to compensate for the exception

Under fair housing law, landlords must make reasonable accommodations for tenants with disabilities. An emotional support animal with proper documentation is a reasonable accommodation. The no-pets policy must yield.

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Key Terms to Know

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