- Civil Rights Act of 1866: "All citizens of the united
States shall have the same right in every State and
Territory, as is enjoyed by the white citizens thereof
to inherit, purchase, lease, sell, hold, and convey
real and personal property."
In 1968, the U.S. supreme Court affirmed the 1866 act
in Jones v. Mayer prohibiting "all racial discrimination,
private as well as public, in the sale of real property."
- 1968 Fair Housing Law: [Title VIII of the Civil Rights
Act of 1968]
Prohibits discrimination based on race, color, religion,
sex or national origin with regard to the sale or rental
of housing and any vacant land offered for residential
construction or use. In particular this includes:
- refusing to sell, rent or negotiate;
- discriminating as to terms or conditions;
- discriminating by advertising;
- denying availability when property really is available;
- varying loan terms;
- denying participation in real estate services,
e.g. MLS (Multiple Listing Service), or Realtors'
associations, etc.
- steering & blockbusting.
- Fair housing Amendments Act of 1988: Prohibits discrimination
based on handicap and familial status (families with
children).
- Blockbusting: ("PANIC-PEDDLING")
The unlawful practice of blockbusting is defined
as intentionally trying to induce another person
to transfer an interest in real estate or discourage
that person from purchasing by referring to persons
of any particular race, color, sex, religion or
national origin, or in any way suggest that the
presence of such persons will lower property values,
change the racial, religious, or ethnic character
of the block, neighborhood or area where the property
is located, increase criminal or antisocial behavior
in the area or cause a decline in the quality of
the local schools.
Congress has declared that blockbusting "cheats
homeowners, increases interracial tensions, promotes
neighborhood instability and creates ghettos, which
do harm to the citizens of Maryland and that it
promotes panic, fear and hate for purposes of financial
profit." Blockbusting is always illegal, whether
or not the blockbuster is acting for monetary gain.
A person who violates the provisions of this law
can be found guilty of a misdemeanor and on conviction
subject to fine and/or imprisonment.
- Steering is the illegal practice of directing
minority members to or away from certain neighborhoods.
- Redlining: Refusing to make mortgage loans
or issue insurance policies in specific areas without
regard to economic qualifications. this practice
contributes to the deterioration of neighborhoods
and may be based on racial grounds. However, refusal
based solely on sound economic grounds cannot be
accused of redlining.
- Housing Discrimination--Elderly: A landlord,
real estate broker or agent may not refuse to rent
or sell housing to a person 62 years of age or older.
- TESTERS: From time to time real estate
agents are approached by fair housing testers. These
are individuals or organizations that respond to
advertising and visitreal estate offices to test
for compliance with fair housing laws. The tester
plays the role of a person looking for housing to
buy or rent and observes if fair housing laws are
being followed. If not, the tester may lodge a complaint
with the appropriate fair housing agency.
Antitrust and Real Estate
- Establishing Company commission rates:
- unilaterally without consultation with affiliated
or competing firms; and
- insure independent pricing for services.
- Varying compensation among cooperating offices:
- conspiracy claims
- motivations are critical
- Ethical duties: Cooperation vs. Price Fixing
- Cooperation
- duty not to solicit the client of another Realtor
- Prohibition against 2 or more brokers agreement
regarding cooperative compensation each will pay
a 3rd broker. However, normal cooperation agreements
should be before an offer to purchase has been procured
by the cooperating office.
[This prevents cooperating brokers from using a
sales contract as leverage to compel the listing
broker to modify the terms of a listing agreement.]
- Comparative Advertising: truthful nondeceptive advertising
required.
|