California Real Estate Broker ExaminationReal Estate PracticeMedium
A real estate licensee is preparing an advertisement for a property. The advertisement states, 'Beautiful home, perfect for young families, located in a quiet, established neighborhood with excellent schools.' Which of the following statements is true regarding this advertisement?
- AIt is acceptable as long as the neighborhood does indeed have excellent schools.
- BIt is permissible because it does not explicitly mention race or religion.
- CIt potentially violates Fair Housing laws by discouraging certain protected classes.
- DIt is only problematic if the licensee intended to discriminate.
Show answer & explanationAnswer & explanation
Correct answer: C. It potentially violates Fair Housing laws by discouraging certain protected classes.
Phrases like 'perfect for young families' can be seen as discriminatory under Fair Housing laws, as they may imply a preference or limitation based on familial status, which is a protected class. Even without explicit mention of race or religion, such language can create an exclusionary impression.
Why the other options are wrong
- A. The truthfulness of the school claim does not negate potential discrimination based on familial status.
- B. Fair Housing laws extend beyond explicit mention of protected classes; subtle or implicit discrimination is also prohibited.
- D. Under Fair Housing, discriminatory effect or impact can be sufficient for a violation, regardless of intent.
Fair Housing Advertising Guidelines
Advertisements for real estate must not express any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin, even if implicitly.
- Avoid terms suggesting a specific type of buyer (e.g., 'empty nesters', 'executive home').
- Focus on property features, not ideal occupants.
- Cannot use exclusionary language about neighborhoods or amenities.
Memory trick: Ads must be neutral, not hint at who should or shouldn't live there.