| THE FAIR HOUSING ACT
Q. Can a homeowner legally refuse to sell a home to a potential
buyer?
A. The Fair Housing Act, Title VIII of the Civil Rights Act of
1968, covers housing
discrimination. This law prohibits housing discrimination by real estate
firms and homeowners.
This means that homeowners may not refuse to lease or sell property based
on race, religion,
gender, color, or national origin. In some localities, special housing
discrimination ordinances or
laws also cover sexual orientation. This does not mean, however, that
sellers must sell you their
home. It means that you could take legal action if the seller refuses
to sell and you believe it was
due to discrimination.
A homeowner can face serious financial penalties if found in violation
of this law. The
potential buyer could sue for actual monetary losses as well as attorney's
fees, court costs, and
even punitive damages.
A homeowner may lawfully discriminate on economic grounds. Without too
much fear of
legal action, a seller could refuse the bid of a buyer with a poor credit
rating or inability to obtain a loan. The homeowner's argument could be
that he or she cannot be forced to remove the home from the market while
waiting for a loan commitment that had little chance of materializing.
Perhaps the safest thing for the seller to do if the economic viability
of an offer is in question is to tell the buyer that offer might be accepted
once the loan commitment is obtained if no other offers were received
in the interim.
Q. What is steering?
A. Real estate firms and agents also are covered by the Fair
Housing Act, which prohibits them
from steering, a practice of showing potential buyers homes located only
in certain neighborhoods.
For example, a firm or agent might be accused of steering if the homes
shown to prospective black buyers were located only in black neighborhoods.
Q. How can I tell if discrimination is occurring, and what can
I do about it?
A. You may suspect discrimination if:
• somebody tells you that a listed home is no longer for sale but
it remains on the market;
• an agent avoids showing you homes in areas you have requested;
• a seller refuses a full-price bid on a home.
If you suspect that someone has discriminated against you, request a complaint
form by calling the federal Department of Housing and Urban Development
(HUD) at 1-(800) 424-8590 or online at http://www.hud.gov/hdiscrim.html.
Its job is to investigate such complaints. You also may be able to contact
a local civil rights organization to find out if your area has specific
organizations to contact. Usually, you will have to consult a lawyer about
possible legal action against the homeowner.
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