1. Modern Real Estate Practice in Pennsylvania 12th Edition Chapter 17: Ethical Practices and Fair Housing

2. 17 Fair Housing and Ethical Practices • Learning objectives • Distinguish between law and ethics • Identify classes of people who are protected against discrimination in housing by various state and federal laws • Describe how state and federal fair housing laws are enforced, including penalties, sanctions • Explain the impact of state and federal fair housing laws on licensee conduct, advertising, and marketing • Define key terms

3. 17 Fair Housing and Ethical Practices • Professional ethics • System of moral standards for integrity and competence • Define code of conduct for relations within the industry • Fair Housing Act • Code of ethics

4. 17 Fair Housing and Ethical Practices • Equal opportunity in housing • Legal framework • Opportunity to live where one chooses • Real estate licensees must avoid prejudice • In themselves • From property owners • State laws often more strict than federal

5. 17 Fair Housing and Ethical Practices • Federal laws • Civil Rights Act of 1866 • Plessy v. Ferguson; Jones v. Mayer • Title VIII, Civil Rights Act of 1968 (Fair Housing Act) • Race, color, religion, national origin • Administered by HUD

6. 17 Fair Housing and Ethical Practices • Equal opportunity in housing • Fair Housing Amendments Act • Families with children • Disability • Housing for Older Persons Act (HOPA) • Repealed “significant facilities and services” • 55 and older • Elderly persons • 62 years (federal) • 40 years (Pennsylvania)

7. 17 Fair Housing and Ethical Practices • Definitions • Familial status • Under 18 living with parent/guardian over 18 • Same terms and conditions for all • Disability • Physical and mental impairment • Substantially limits one or more major life activities • Does not protect current users of illegal substances • Landlords must allow reasonable modifications • Can require deposit to restore to previous condition

8. 17 Fair Housing and Ethical Practices • Exemptions • Most federal exemptions under federal law do not apply in PA • Owner-occupied one-to-four family dwellings • Single-family housing sold or rented by owner • Organizations and private clubs • Individual does not own more than three such homes at one time • Real estate licensee is not involved • No discriminatory advertising

10. 17 Fair Housing and Ethical Practices • Megan’s Law • Equal Credit Opportunity Act • Americans with Disabilities Act • Pennsylvania Human Relations Act • Broader, applies to four or more employees • Applies to commercial property • Limited exemptions

11. 17 Fair Housing and Ethical Practices • Pennsylvania Real Estate Licensing and Registration Act • Prohibits discriminatory activities • Commission may discipline licensees • Official notice and poster • Prominently displayed in place of business • Failure may be considered evidence of discrimination

12. 17 Fair Housing and Ethical Practices • Fair housing issues • Blockbusting (panic selling) • Steering • Advertising • Appraising • Redlining • Intent and effect • Response to concerns of terrorism • Threats or acts of violence

13. 17 Fair Housing and Ethical Practices • Enforcement of the Fair Housing Act • Complaints initiate investigation by HUD • Conciliation • Administrative proceedings • Penalties • First offense: up to $16,000 • Second offense: up to $37,500 • Three or more offenses: up to $65,000 • Civil action in federal court

14. 17 Fair Housing and Ethical Practices • Implications for real estate licensees • Licensees are communities real estate experts • Must uphold reputation of community • Fair housing is the law • PA fair housing guidelines • Standardized inventory • Consistent practices • Verifiable and measureable criteria • Written documentation