Selling Your Home? Here’s What You Need to Know About Fair Housing Laws

When selling your home, it’s natural to hope for a buyer who will cherish it as much as you have. However, it’s crucial to ensure that personal preferences don’t inadvertently lead to discriminatory practices.

Understanding the Fair Housing Act

The Fair Housing Act is a federal law that prohibits discrimination in housing-related activities based on race, color, religion, sex, disability, familial status, or national origin. Some states may have additional protected classes, so it’s essential to be aware of local regulations. 

Actions to Avoid

To comply with the Fair Housing Act, avoid the following:

• Refusing to sell to someone based on their inclusion in a protected class.

• Offering different terms or conditions to different buyers.

• Falsely stating that a property is unavailable.

• Using discriminatory language in advertisements.

• Applying different criteria when evaluating offers. 

Be Cautious with Marketing Language

Certain phrases in listings, such as “ideal for families” or “near a church,” can be interpreted as discriminatory. It’s best to focus on the property’s features without implying a preference for a particular type of buyer.

The Issue with Buyer “Love Letters”

Buyers sometimes write personal letters to appeal to sellers. While heartfelt, these letters can reveal information about the buyer’s background, potentially influencing decisions in a way that violates fair housing laws. To avoid this, consider not reading such letters and base decisions solely on objective criteria like offer price and contingencies. 

Who Must Comply?

Anyone involved in the sale, rental, or financing of housing must adhere to fair housing laws. This includes homeowners, real estate agents, property managers, and lenders. 

Reporting Discrimination

If someone believes they’ve experienced housing discrimination, they can file a complaint with the U.S. Department of Housing and Urban Development (HUD). HUD will investigate and take appropriate action if a violation is found.

By understanding and following fair housing laws, you ensure a fair and legal home-selling process for all parties involved.