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THE CIVIL RIGHTS ACT OF 1866
This law states that "all citizens of the United States shall have the same right, in every state and territory as is enjoyed by white citizens thereof to inherit, purchase, lease, sell, hold and convey real and personal property." The act prohibits discrimination based on race or color.
a) Jones V. Mayer - The U.S. Supreme Court upheld the act in the landmark 1968 case of Jones v. Mayer. The court ruled that the Civil Rights Act of 1866 prohibits all racial discrimination in the sale or rental of property, and that it is constitutional based on the 13th Amendment, which prohibits slavery
THE FEDERAL FAIR HOUSING ACT
Contained in Title VIII of the Civil Rights Act of 1968, the Fair Housing Act is intended to provide fair housing opportunity throughout the United States.
A. Protected Classes - The Act makes it illegal to discriminate on the basis of race, color, religion, sex, national origin, disability, or familial status in the sale or lease of residential property, or in the sale or lease of vacant land for the construction of residential buildings.
1. Nonresidential transactions - The Act does not apply to nonresidential transactions, such as those involving commercial or industrial properties
2. Real estate licenses are covered - The law prohibits discrimination in real estate advertising and brokerage. A broker approached by a seller who wishes to violate the Fair Housing Act should decline the listing.
B. Exemptions - While the Fair Housing Act applies to the majority of residential real estate transactions that are exempt from it.
1. Sale of home by owner - The law does not apply to the sale or rental of a single-family home by its owner, provided that (1) the owner does not own more than three such homes; (2) no real estate licensee is used in the transaction; and (3) no discriminatory advertising is used
2. Residential rental - The law does not apply to the rental of a unit or a room in a dwelling with up to four units, provided that (1) the owner occupies one of the units as her residence; (2) no real estate licensee is employed; and (3) no discriminatory advertising is used.
3. Religious or nonprofit organizations - In dealing with their own property in noncommercial transactions, religious societies or nonprofit organizations may limit occupancy to or give preference to their own members, so long as membership isn't restricted on the basis of race, color, or national origin.
4. Private clubs - Private clubs with lodging that isn't open to the public and that isn't operated for a commercial purpose may limit occupancy to or give preference to their own members.
PROHIBITED ACTS
1. Refusing to rent or sell - The Act refusing to rent or sell residential property after receiving a bona fide offer.
2. Refusing to negotiate - The Act prohibits refusing to negotiate for the sale or rental of residential property, or otherwise making it unavailable.
3. Changing terms - The Act prohibits changing the terms of sale or lease for different potential buyers or tenants.
4. Discriminatory advertising - The Act prohibits using advertising that indicates a preference or intent to discriminate.
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