The Fair Housing Act is a landmark federal law drafted to prevent housing discrimination. Historically, some communities have excluded people from certain racial backgrounds. The Fair Housing Act effectively outlawed the consideration of characteristics such as race, marital status and religion when making decisions about who can purchase the property in a specific area.
Even though federal law may have clear rules in place, many homeowners still have deep-set personal biases that affect the real estate market. For example, a seller may indicate to their real estate agent that they don’t want people with certain characteristics buying their home. Some agents decide to cease working with clients who express those preferences. Others can educate their clients about the Fair Housing Act and try to prevent discrimination from occurring.
What are some ways to limit discrimination during real estate transactions?
Ignoring or returning love letters
The buyer love letter has long been a tactic used in competitive markets. Buyers try to establish a personal rapport with a seller by sending them a note about their family or expressing their passion for a particular home.
The goal in such cases is to stand out from others who may have made more aggressive offers or offered the same price. In practice, those letters often include information that can help sellers identify a buyer’s family status or race. Refusing to deliver such letters or simply conveying the basic information from them to sellers can help prevent claims of discrimination.
Having the seller leave for all showings
Whether the agent listing the property hosts an open house where dozens of families visit at once or they schedule one-on-one viewings, it is often preferable to have the seller leave during that process. That way, the agent can prevent scenarios in which the seller might express their discriminatory preferences directly to potential buyers.
Focusing on the figures, not personal characteristics
Real estate professionals have a fiduciary duty to their clients. They should try to help their clients obtain the best possible sales arrangement based on factors including the price, the contingencies in the offer and even the possession date proposed by the buyer.
Relaying those specific details and choosing not to present a seller who has expressed discriminatory preferences with the actual offer that may include personal information about the buyers, such as a racially-coded last name, could help prevent scenarios in which sellers let a personal prejudice influence a real estate transaction.
Real estate agents may need help preventing violations of the Fair Housing Act and/or responding to accusations they violated the law during a residential real estate transaction. Having the right processes in place can take some of the risk out of representing a seller with outdated values.