The Fair Housing Act and Discrimination in Real Estate

What Is the Fair Housing Act?

The Fair Housing Act (FHA) makes it illegal for various real estate and lending institutions to take part in discriminatory practices against certain groups of people. Entities and occupations subject to FHA regulation include:

• Real estate companies and their agents
• Landlords
• Banks and lending institutions
• Municipal/Local governments
• HOA’s
• Home insurance companies

All of these institutions are banned from discriminating on the basis of several characteristics. They are:

• Sex/Gender
• Race/Color/Nationality
• Religion
• Disability
• Familial status (families with children)

What Kind of Activity Is Illegal Under the FHA?

Put simply, the FHA aims to ensure that institutions in the real estate industry treat people equally and do not discriminate based on the previously mentioned characteristics. Moreover, in all aspects of real estate—such as buying and selling homes, lending home loans, renting properties, and advertising real estate services—the FHA explicitly outlaws discriminatory practices.

The FHA explicitly prohibits all covered institutions from discriminating based on race, sex, religion, disability, or familial status. Specifically, this applies when:

• Choosing who to buy or sell a home to
• Negotiating offers on a property
• Setting the terms of the offer/sale
• Providing services (parking spots, gym usage)
• Charging rent on a property
• Evicting tenants
• Maintaining a rental property
• Choosing which units each tenant will live in
• Showing people where to buy homes (steering)
• Loaning/Setting terms of mortgages
• Appraising a property
• Advertising properties to people

Some Examples of FHA Violations:

• An owner of an apartment building with a gym refuses to allow disabled people to use it for fear of making others uncomfortable

• A real estate agent who is selling a house decides to accept a lower offer from a Christian family, when other non-Christians made higher offers

• A mortgage lender charges racial minorities with higher interest rates, claiming that their loans are riskier to give out

How Do I Take Legal Action if I Was Discriminated Against?

You also have the option to sue the entity that discriminated against you. As a result, taking action can entitle you to compensation for any hardship or injury you have endured.

Additionally, you have the option to file a complaint with the federal Department of Housing and Urban Development. You can submit it online through their website or mail it directly to them. Specifically, the complaint should include:

• Your name and Address
• Who discriminated against you, and their address
• Describe what happened, how it violated your rights, and the impact on you.
• The dates of the alleged discrimination

Fair Housing Act and Discrimination in Real Estate Attorney

Do you feel like you or a loved one have been discriminated against by a real estate agency or licensee? Get in touch with our law firm KAASS Law for legal assistance right away.

How Long Does it Take to File a Lawsuit For a Violation of The Fair Housing Act?

Under federal law, victims of housing discrimination must act quickly. It is important to note that there is a limited time frame for filing a lawsuit. Specifically, you may file a complaint with the Department of Housing and Urban Development (HUD). Within one year of the alleged violation.

However, if you want to file a civil lawsuit in court, you have two years to file a complaint. Filing a complaint with HUD may suspend the statute of limitations for a court action. Therefore, it is recommended that you consult with an attorney as soon as possible. This will help you avoid all risks, including the risk of losing your right to defend yourself.

Compensation and Remedies

If you have been the victim of discrimination, the court may award you various forms of compensation. For example:

• Financial compensation
• Moral damages
• Punitive damages
• An order to stop the wrongdoing

In addition, the court may order the wrongdoer to change a policy or practice. This is to prevent similar cases in the future. In some cases, it is also possible to recover attorney’s fees. This is especially true if your claim was successful.

How Can a Lawyer Help In a Real Estate Discrimination Case?

Contacting an attorney is the most important and first step in protecting your rights. An attorney can:

• Analyze the facts of your case
• Help you gather evidence
• Prepare a lawsuit or complaint to HUD
• Represent your interests in negotiations or in court

An attorney can also determine if the Fair Employment and Housing Act (FEHA) has been violated. This is a California law that complements the federal law. This is especially important if the discrimination occurred within the state.

Contact KAASS LAW