California Real Estate SalespersonPractice of Real Estate and DisclosuresHard

A landlord adopts a race-neutral policy requiring all rental applicants to have a minimum credit score of 750. Statistical evidence shows this policy disproportionately excludes applicants of a particular national origin, even though the policy was not intended to discriminate. This scenario illustrates which fair housing violation theory?

  1. ARedlining
  2. BDisparate impact
  3. CSteering
  4. DDisparate treatment
Show answer & explanation

Correct answer: B. Disparate impact

Disparate impact discrimination occurs when a facially neutral policy disproportionately harms a protected class, regardless of intent, and can violate fair housing law unless justified by a legitimate business necessity with no less discriminatory alternative.

Why the other options are wrong

  • A. Redlining involves denying services based on geographic/racial composition of an area, not applicant screening criteria.
  • C. Steering involves directing buyers/renters toward or away from areas based on protected class.
  • D. Disparate treatment requires intentional discrimination, which is not indicated here.

Disparate Impact Discrimination

A facially neutral policy or practice that disproportionately affects a protected class can constitute unlawful discrimination even without discriminatory intent.

  • No intent to discriminate required
  • Statistical disproportionate effect is key evidence
  • Landlord may defend with legitimate business necessity

Memory trick: Neutral rule, unequal result — that's impact, not intent.

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