Fair Housing Act
National Real Estate Exam glossary · Practice Of Real Estate
Definition
The federal law (Title VIII of the Civil Rights Act of 1968, as amended) prohibiting discrimination in the sale, rental, financing, and advertising of housing. The protected classes are race, color, religion, and national origin (1968), sex (1974), and familial status and disability (1988). Limited exemptions exist for certain owner-occupied small dwellings and single-family homes sold without a broker, but never for race (barred separately and absolutely by the 1866 Act), never for discriminatory advertising, and never when a broker is used.
Fair Housing Act in plain English
The Fair Housing Act is the main U.S. law that makes it illegal to treat people unfairly when it comes to housing — you can't refuse to sell, rent, lend money for, or even ADVERTISE a home in a way that discriminates against someone for who they are. The law protects specific groups (called 'protected classes'): race, color, religion, and national origin from 1968, then sex added in 1974, and family status (like having kids) plus disability added in 1988. There are a few narrow exceptions for tiny owner-occupied buildings or an owner selling their own single-family home without an agent — but those loopholes NEVER apply to race (a separate 1866 law bans that completely), never to discriminatory ads, and never when a real-estate agent is involved. Think of it as the rulebook ensuring the housing 'game' is played fairly for everyone.
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