Moving to Houston? Understand the Fair Housing Act
April is Fair Housing Month, which serves as the perfect opportunity to remind consumers of what fair housing is all about, and what it means for people who are buying and selling real estate.
The federal Fair Housing Act, which is part of the Civil Rights Act of 1968, along with the Texas Fair Housing Act encourages equal housing opportunities for everyone. It protects the rights of consumers to rent an apartment, buy a home, obtain a mortgage, or purchase homeowners insurance, free from discrimination based on race, color, national origin, sexual orientation, religion, sex, familial status, and disability.
Realtors must carefully abide by fair housing laws at all times. As such, they often have to explain to their clients why they cannot say or do certain things, because those acts would be in violation of fair housing laws.
It is important for Realtors to discuss such matters with their clients, especially those who might be new to Houston and to Texas.
Shad Bogany is a broker associate with Better Homes and Gardens Real Estate Gary Greene, and a former chairman of both the Houston Association of Realtors and the Texas Association of Realtors.
He said that while great strides have been made in fair housing since the passing of the Civil Rights Act in 1968, he still thinks that there is much more work to be done, and that more information needs to be brought to the forefront to properly educate consumers.
“We have made progress, but you can still find deed restrictions in some neighborhoods that say things like they don’t want certain classes of people living in the neighborhood, even though that is illegal,” Bogany said.
When working with relocation clients, Bogany said that he sometimes must explain fair housing to them, because they don’t realize what things would put him at risk of being in violation of the Fair Housing Act.
“When someone is moving to Houston, they assume that I am going to be fair with them, but I also have to explain that I have taken a pledge as a Realtor. So, I will show them everything that is available to them, and look out for their best interest. This is where our Realtor’s Code of Ethics comes into play, and fair housing is included in that. I also have to follow the Texas Real Estate Act, which states that we have to treat people fairly and honestly, and not discriminate.”
He added, “For instance, if I’m working with a buyer who tells me that he only wants to look at areas where a lot of white people live, and that he doesn’t want to look at areas that have too many minorities, I tell him that I can’t do that.”
Even if a relocation client from another country innocently says that they want to live in a neighborhood where other people from their country reside, Bogany said that he asks more questions to better understand their priorities in choosing a neighborhood.
“In those situations, people are typically just looking for physical familiarity more than anything else. It can be a very tight rope to walk when you are dealing with somebody who says that they want to be in a certain area, because they are looking for people who look like they do. Immediately, I tell them that I cannot discriminate against anybody, because it’s against my Code of Ethics as a Realtor,” said Bogany.
“So, I have always tried to turn the discussion back to money, and getting the best deal, the best house, and the best schools, which might be better for the client than the other area they mentioned,” he said.
Fair housing issues also come up when representing sellers. Bogany said that he sometimes has to explain to homesellers that they can’t place stipulations on the type of people they will be willing to sell their home to, as that is a direct violation of fair housing.
For instance, a home seller cannot state that they will only sell their home to someone with children, or only to people of a certain race.
When clients insist on forcing the issue, Bogany said that he has no choice, but to terminate his relationship with those clients.
“The seller could get sued if an allegation comes up that he has discriminated against a buyer,” Bogany said. “So, I tell the seller that he came to me and asked me to sell his property because of my reputation and skills, but that if he chooses to go down this path of discrimination, that I will have to terminate the relationship. And, they usually understand, because times have changed.”
For more information on fair housing, please visit www.HUD.gov.