Login
Password

Forgot your password?

Real Estate Civil Rights and Fair Housing Laws Terms and Examples

By Edited Dec 8, 2013 0 0

1)    Civil Rights Acts of 1866-

Definition: An act that prohibits discrimination on race or ancestry in property transactions.

Example: Ron is an Caucasian man looking to buy a house in a primarily Mexican neighborhood. Ted, Ron’s realtor, tells Ron that this neighborhood is primarily Mexican and he should not buy there. Ron reports Ted because he knows it is against the law for Ted to discriminate based on race for property transactions.

Elements:

a)     Property transaction- Ron wants to buy a house.

b)    Discrimination based on race or ancestry- Ron tells Ted he should not buy a house in the neighborhood he wants because it is a primarily Mexican neighborhood.

c)     Illegal to discriminate- Ron reports Ted for discriminating based on race because it violates the Civil Rights Act of 1866.

 

2)    Blockbusting-

Definition: When someone predicts the entrance of minorities into a community and they imply that this will have a negative effect on the community such as lower property values, higher crime rates, etc.

Example: Randy is selling Sarah’s house for her. Randy wants to reduce the price of Sarah’s house but she refuses. Randy finds out that two houses in Sarah’s neighborhood sold to minorities in the past month. Randy shows Sarah the new neighbors and implies the neighborhood is going downhill because of the minorities and it is time to have a price reduction on her home.

Elements:

a)     Deceptive way to sell a house at a lower price- Sarah refuses to lower the price of her house so Randy looks for a reason to reduce the property.

b)    Stating that minorities are bringing the neighborhood down- Randy shows Sarah that minorities moved into the neighborhood and it is now going downhill.

c)     Inducing property owners to sell property for reduced price- Randy tells Sarah she needs to reduce the price of her home because the minorities are taking over the neighborhood bring it down.

 

3)    Redlining-

Definition: Refusal to make loans on a property because it is located in a particular area.

Example: Tara went to get a loan for a house she purchased in a primarily African American neighborhood. The bank refused to give her the loan because the house is in an African American neighborhood where property values are declining.

Elements:

a)     A person needs a loan to buy a house- Tara needs a loan to purchase a new property.

b)    Refusal to make a loan on the property- The bank refused to make a loan on Tara’s property.

c)     Discriminating on a particular neighborhood- The bank refuses to give a loan because the house is located in a primarily black neighborhood.

 

4)    The Fair Housing Act-

Definition: An act that prohibits any discrimination in home loans, and all other aspects of financing for residential purposes.

Example: Tara went to get a loan for a house she purchased in a primarily African American neighborhood. The bank refused to give her the loan because the house is in an African American neighborhood where property values are declining. Tara reports the bank to the FHEO for discriminating about race because it is illegal.

Elements:

a)     Refusal to make a loan on the property- The bank refused to make a loan on Tara’s property.

b)    Discriminating on a particular neighborhood- The bank refuses to give a loan because the house is located in a primarily black neighborhood.

c)     Reporting of discrimination- Tara reports the bank to FHEO because the bank discriminated based on race and violated The Fair Housing Act.

 

5)    The Unruh Civil Rights Act

Definition: An act that states all people have the right to full use of any services provided by a business establishment regardless of race, religion, disability, etc.

Example: Robert is a real estate agent in a primarily Caucasian area. An African American walked into his place of business and he told his broker he did not want to take the African American on as a client because the area is primarily Caucasian. The broker reminds Robert it is illegal to discriminate based on race and convinces Robert to take the African American on as a client.

Elements:

a)     Discrimination in a business- Robert does not want to work with the African American.

b)    All people have the rights to services provided by businesses- The broker reminds Robert it is illegal to discriminate based on race and convinces Robert to take the African American on as a client.

c)     Real estate agents must follow the Unruh Civil Rights Act- Robert must take on the African American as a client even though he will be selling him a house in a primarily Caucasian neighborhood.

 

6)    The Housing Financial Discrimination Act-

Definition: An act that prohibits a denial of a loan or stricter loan terms because of a neighborhoods characteristics.

Example: Gail wanted to buy a house in an economically poor neighborhood. She went to the bank to get a loan. The bank decided to give her the loan, but gave her strict rules that they do not normally give their clients because of the neighborhood the house is in.  Gail must pay her mortgage between the 1st and 5th every month and will be charged a 50% penalty if she is one day late on her mortgage. Gail takes the loan, only to later find out it is illegal and she reports the bank. They lift the restrictions because they were violating The Housing Financial Discrimination Act.

Elements:

a)     A person needs a loan- Gail needs a loan to buy her new house.

b)    Discrimination based on a neighborhood’s characteristics- The bank decided to give Gail stricter rules on her loan because of where her house is located.

c)     Illegal to give stricter rules- Gail takes the loan, only to later find out it is illegal and she reports the bank. They lift the restrictions because they were violating The Housing Financial Discrimination Act.

 

7)    Testers-

Definition: A person who goes undercover as a buyer to investigate a discrimination complaint.

Example: Holly goes undercover and visits Danny, a real estate agent who is accused of discriminating on religious values. Holly asks to see a particular house that a Hindu family owns and Danny refuses to show her the house because Holly is not Hindu and the family will only sell to another Hindu family.

Elements:

a)     A discrimination case is reported- Danny is accused of discriminating based on race.

b)    Person is sent out to investigate- Holly goes undercover to see if Danny is discriminating.

c)     Discrimination is either found or not- Holly asks to see a particular house that a Hindu family owns and Danny refuses to show her the house because Holly is not Hindu and the family will only sell to another Hindu family.

 

8)    Steering-

Definition: When someone directs buyers or tenants to certain areas based on their race, religion, national origin, or ancestry.

Example: Rosa is of Mexican ethnicity and is working with a real estate agent who keeps directing her to buy in primarily Mexican neighborhoods. Rosa notices her real estate agent doing this and asks to see houses in different area. The real estate agent keeps showing her Mexican neighborhoods and Rosa decides to report her real estate agent because it is illegal to direct people to certain areas based on race.

Elements:

a)     Directing buyers or tenants to certain areas- Rosa’s real estate agent repeatedly shows her houses in primarily Mexican neighborhoods.

b)    Discriminating based on race- Rosa real estate agent shows her houses in primarily Mexican neighborhoods because she is of Mexican ethnicity.

c)     Illegal- Rosa decides to report her real estate agent because it is illegal to direct people to certain areas based on race.

 

9)    Compensatory Damages-

Definition: An award given to the plaintiff for out of pocket expenses and any mental or emotional distress.

Example: Sally lend out $30,000 to her friend Ed to put a down payment on a house. Ed agreed to pay Sally back in monthly payments of $400. Ed skipped town and never put the money on a down payment and never paid Sally back. Sally sued Ed for her money back plus $100,000 in emotional distress. The judge awarded Sally everything she wanted.

Elements:

a)     Problem that needs court involvement- Ed skipped town and never put the money on a down payment and never paid Sally back.

b)    Award given to a plaintiff for out of pocket expenses- Sally was awarded the $30,000 she lend Ed.

c)     Award given to plaintiff for emotional distress- Sally was awarded $100,000 in addition to the $30,000 for her emotional distress.

10) Injunction-

Definition: A court order that makes a party do or not do a particular action.

Example: Tom inherited his home from uncle Bob. Bob wrote in will that Tom may not sell the home for 10 years after Bob passes away. Tom tries to sell the house 3 months after Bob’s death. Bob’s lawyer takes Tom to court for trying to sell the house. The judge orders that Tom must follow what Bob’s will says and he cannot sell the house.

Elements:

a)     A court order- The judge rules Tom must follow what is in Bob’s will.

b)    A party can or cannot do a particular action- Tom may not sell Bob’s home for 10 years.

c)     Breaking of a contract- The judge stopped Tom from breaking his uncle Bob’s will.

 

Advertisement

Comments

Add a new comment - No HTML
You must be logged in and verified to post a comment. Please log in or sign up to comment.

Explore InfoBarrel

Auto Business & Money Entertainment Environment Health History Home & Garden InfoBarrel University Lifestyle Sports Technology Travel & Places
© Copyright 2008 - 2016 by Hinzie Media Inc. Terms of Service Privacy Policy XML Sitemap

Follow IB Business & Money