Fair housing act of 1968: What a buyer or renter must know

Before looking for that perfect home to buy or rent, you need to know everything about your rights. And, that’s where the Fair Housing Act of 1968 comes into the picture.

According to the Act, people can’t be treated unfairly when they buy, rent, sell, or get money for a house. This law makes it illegal to treat someone differently because of their race, skin color, where they’re from, religion, gender, any disability, or if they have kids.

Additionally, it’s against the law to threaten, scare, or force people who are using their housing rights. It’s also illegal to say or advertise that you have restrictions or preferences for housing based on someone’s protected characteristics.

Why and how was the Fair Housing Act of 1968 passed?

Back in the late 1960s, there was still a lot of unfair treatment based on race in housing. Minorities, including African Americans, often couldn’t live in certain parts of cities or neighborhoods. Or, they were denied loans to buy homes there. And when people tried to change these unfair rules, they often faced rejection, unfriendliness, and sometimes even violence.

The Fair Housing Act, also known as Title VIII of the Civil Rights Act of 1968, came into being to combat this problem. President Lyndon B Johnson signed the law on April 11, 1968. It was made to build on the Civil Rights Act of 1964. It came days after civil rights leader Dr. Martin Luther King, Jr. was assassinated.

One of its main goals was to stop discrimination based on race, religion, and gender in the housing market.

What is the Fair Housing Act of 1968?

The Fair Housing Act makes it clear that it’s not allowed to treat people unfairly when they’re renting, buying, or getting a loan for a house. This rule applies to landlords, real estate companies, banks, people who help with mortgages, real estate agents, and even home insurance companies. 

The Fair Housing Act strongly states that such unfair practices, rules, and behaviors in the housing rental, buying, and financing industry are not allowed. It covers differential treatment, harassment, threats, or punishment against people because of their race, color, religion, gender, origin, family situation, or disabilities.

The law also gives them a way to get help if they think their rights have been violated.

What are the most common fair housing violations?

The Fair Housing Act prohibits discrimination based on several protected characteristics. Here are some examples of discrimination under the Fair Housing Act of 1968:

• Race or color discrimination: Refusing to rent or sell a home to someone because of their race or the color of their skin.
• National origin discrimination: Mistreating someone because of their country of origin, nationality, or ancestry.
• Religious discrimination: Refusing to rent or sell a home to someone because of their religion or religious beliefs.
• Sex discrimination: Treating someone differently because of their gender. For example, refusing to rent to a single mother.
• Disability discrimination: Failing to make reasonable accommodations for people with disabilities, such as not allowing a service animal or not providing accessible housing.
• Familial status discrimination: Treating families with children unfairly, such as having a policy that bans families with kids from certain housing.
• Sexual orientation and gender identity discrimination: Some jurisdictions extend Fair Housing Act protection to include discrimination based on sexual orientation and gender identity. This means it would be illegal to discriminate against someone because they are gay, lesbian, bisexual, transgender, or gender non-conforming in those areas.

What rules should landlords, real estate brokers, or agents abide by?

Under the Fair Housing Act, it is against the law for landlords, real estate companies, property sellers, or anyone involved in housing to use a person’s protected characteristics as a reason to:

• Falsely say there are no available homes.
• Block access to housing services or facilities.
• Say no to sale, rental, and financing.
• Refuse to discuss housing options.
• Offer different terms for sale or rent than others.
• Say no to access or membership for housing-related services such as Multiple Listing Service (MLS).
• Provide different housing services or facilities.
• Ask for a different price for sale or rent.
• Neglect or delay repairs and home maintenance.

What rules should banks, lenders, and mortgage companies abide by?

Loan lenders or mortgage brokers are forbidden to engage in the following based on anyone’s protected class:

• Refuse to share details about loan options.
• Reject a mortgage application.
• Apply distinct conditions or requirements, such as varying interest rates, points, or fees.
• Practice bias when assessing the value of a property.
• Decline to buy a loan.

Are there exceptions to the Fair Housing Act?

The law doesn’t apply to houses where the owner lives. Or, if there are only fewer units or single-family homes rented or sold directly by the owner (without a middleman). It also doesn’t apply to places run by private clubs or groups that only let their members live there.

Read more: Sell home or keep it as a rental

How can you use the Fair Housing Act if your rights are violated?

If you think you were treated unfairly, you can lodge a complaint at the Office of Housing and Urban Development (HUD). The United States Department of Housing and Urban Development allows filing complaints online through forms in different languages. But, there’s a time limit for when you can report discrimination based on race, color, national origin religion, sex familial status, and disability. 

When you complain, you’ll need to give your name and address, the name and address of the person or company you’re complaining about, and where this happened. You must also state why you think your rights were violated.

Read more: What is CAM in commercial real estate?

Written by Ramona Sinha. November 16, 2023

Ramona is the Senior Content Writer for Kukun. This experienced blogger uses simple and succinct words to decipher the complex phenomenon called life. She has written articles covering a broad range of topics, such as real estate, lending and mortgage, finance, business, taxation, home designs, home improvement projects, decor concepts, and more. An avid traveler, she’s a digital nomad at heart and an animal lover from the depth of her soul.