Real Estate Ethics, Laws, and Fair Housing Principles — Flashcards

Real estate in the U.S. is governed by federal, state, and local laws—primarily the Fair Housing Act (FHA)—which prohibit discrimination based on race, color, religion, sex, disability, familial status, and national origin. Ethical standards, such as the National Association of REALTORS® Code of Ethics, mandate honesty, integrity, and client confidentiality. 

Key Fair Housing Principles & Laws
Fair Housing Act (1968): Prohibits discrimination in selling, renting, financing, or advertising housing.
Protected Classes: Race, color, religion, sex (including sexual orientation and gender identity), disability, familial status, and national origin.
Prohibited Practices: Steering (directing buyers to certain areas), blockbusting (inducing panic selling), redlining (denying loans in certain areas), and discriminatory advertising.
Accessibility: The Americans with Disabilities Act (ADA) and FHA require reasonable accommodations and modifications for people with disabilities.
Civil Rights Act of 1866: Prohibits all racial discrimination in property transactions. 

Real Estate Ethics & Standards
Code of Ethics: The National Association of REALTORS® (NAR) Code of Ethics consists of 17 Articles focused on duties to clients, the public, and other brokers.
Core Principles: Fiduciary duty to clients, honesty in representations, non-discrimination, and confidentiality.
Advertising Rules: Must be truthful, disclose company branding, and avoid discriminatory language (e.g., targeting specific demographics). 

Common Violations
Misrepresentation: Exaggerating facts or failing to disclose material defects.
Steering: Limiting housing options based on a protected class.
Compensation Violations: Modifying commission arrangements without consent. 

Compliance
Real estate professionals must follow HUD guidelines and NAR’s Fair Housing Action Plan (ACT!), which emphasizes Accountability, Culture Change, and Training.