Client “Steering” Is Not Only Unethical, It’s Against FHA Housing Laws

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AUGUST 2020

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VOLUME 25 • ISSUE 4

Client “Steering” Is Not Only Unethical, It’s Against FHA Housing Laws Austin Inspection Services

written by RIKI MARKOWITZ

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When the Fair Housing Act (FHA) was passed in 1968 at the height of the Civil Rights movement, it was landmark legislation that aspired to guarantee equal housing opportunity regardless of race, religion, sex, color and nationality. In 1988, with the support of the National Association of REALTORS (NAR), the law was amended to include families with children and the disabled. Today, every REALTOR in the state of Texas pledges to uphold the principles contained in the REALTORS Code of Ethics, within

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which is enshrined the Fair Housing Act. With these standards firmly in place for decades, it’s hard to imagine how a real estate professional could violate any anti-discrimination law. But what we’ve found is that even experienced REALTORS need an occa-

sional FHA refresher. That’s because most agents, at some point in their career, face scenarios that can be construed as illegal or unethical. And the penalty or punishment for violating fair housing laws, whether it’s a first or repeated offense, can be harsh. According to Texas REALTORS, disciplinary actions range from a fine to suspension or termination of NAR membership. When fair housing laws were adopted by NAR, the purpose was to eliminate discrimination. It removed barriers to housing for a large percentage of Americans, especially for disadvantaged populations. And to this day, Texas REALTORS prioritizes educating members about fair housing laws. But even with safeguards in place, agents can still find themselves on one type of ethical slippery slope or another. Consider one benignsounding question. In a blog post, Texas REALTORS asked members, “How often do clients ask you about whether a property is located in a good school district?” The implication is that most agents have fielded this question at some point in their career. And if you’ve ever answered it, you may be guilty of having steered your client away from considering living in a particular neighborhood. That could qualify as an ethical or fair housing violation. Texas REALTORS writes, “Fair housing laws prohibit you from steering clients, whether toward a particular area or away from that area.” If the decision [Steering continues on page 12]

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