If you’re considering selling or buying a home, especially as a For Sale By Owner (FSBO) seller, it’s important to understand the Fair Housing Act (FHA). This Act was created to prevent discrimination in the housing market, ensuring everyone has an equal opportunity to buy, sell, or rent property, regardless of race, color, national origin, religion, sex, familial status, or disability.
Let’s dive into comprehending the Fair Housing Act, its key principles, and how it impacts you if you’re involved in an FSBO transaction.
What Is the Fair Housing Act?
The Fair Housing Act, passed in 1968 as a section of the Civil Rights Act, is a federal law focused on preventing discrimination in housing. Its main goal is to eliminate discrimination in the housing market. The act applies to most housing transactions, including buying and renting homes and advertisements for housing. It protects against discriminatory practices that could unfairly block or limit access to housing for people.
While the Act was originally aimed at landlords and real estate agents, it also applies to homeowners, who are selling their properties on their own – this means For Sale By Owner (FSBO) sellers must follow the FHA guidelines.
Helpful Note: To learn more about the Fair Housing Act, check out and enroll in our FSBO courses at Something Different RE FSBO. Whether you’re buying or selling, book a Consultation with Aleah today!
Impact of the Fair Housing Act on FSBO Sellers
As a For Sale By Owner seller, you are essentially stepping into the role of an agent. This means you must comply with all the laws and regulations that a professional agent would. If you sell your home without an agent, you may not realize that the Act still applies to you. This is why it’s crucial to understand your responsibilities and avoid any unfair practices when marketing, showing, and selling your property.
1. Advertising Your Home
When listing your property, online, in newspapers, or on any other platform, your advertising must be free from discriminatory language. The Fair Housing Act prohibits ads that suggest a preference for or against certain groups. For example, you cannot say things like “ideal for single professionals” or “no children allowed.” Such phrases could be seen as unlawful against families with children or people from certain social or demographic groups.
Instead, your advertising should focus on the property itself – its size, amenities, and location. Stay neutral and inclusive to ensure you’re not unintentionally violating the guidelines.
2. Showings and Interactions with Potential Buyers
As an FSBO seller, you’ll be directly involved in showing the property and interacting with potential buyers. During these interactions, you must avoid treating anyone differently based on their race, gender, religion, or other protected categories.
For example, you can’t refuse to show your home to someone because of their race, tell someone that a neighborhood isn’t right for them based on their national origin, or ask exclusionary questions like “Do you have children?” or “What is your religion?” Keep all conversations about the property itself, and treat every buyer equally, regardless of their background.
3. Selling Your Property
Once you find a potential buyer, the next step is negotiating the sale. The FHA requires that sellers treat all buyers equally, with no bias based on the protected categories. For example, if you’re offering certain terms or concessions to one buyer, you cannot deny similar terms to another buyer based on prejudiced factors.
You also cannot place conditions on the sale that discriminate against someone’s familial status or disability. For example, denying a sale to a person because they have a service animal or refusing to accommodate a disabled buyer’s needs during the transaction could result in a violation of the Act.
What Buyers Need to Know About the Fair Housing Act (FHA)?
1. Equal Treatment
This Act protects you from discriminatory practices by sellers, real estate agents, and landlords. If you feel that a seller is refusing to show you a home or treating you unfairly due to your race, national origin, or other protected status, you can file a complaint. As an FSBO buyer, you should feel confident that the seller will treat you with respect and fairness.
2. Accessibility Requirements for People with Disabilities
Under the Fair Housing Act, individuals with disabilities have the right to request reasonable accommodations and modifications when buying a home. If you are a buyer with a disability, you have the right to ask the seller to make necessary changes to the property to accommodate your needs. For example, if you need a ramp for a wheelchair or modifications to a bathroom, the seller must allow these modifications if they do not cause undue hardship to the property.
3. Understanding Housing Practices
The Act also protects against unfair practices when it comes to financing. Lenders cannot refuse a mortgage application based on race, ethnicity, or any other protected characteristic. If you believe that a lender is unfairly discriminating against you during the mortgage application process, this is a violation of the Fair Housing Act guidelines, and you have the right to file a complaint.
You can join our In-Person FSBO Home Buyer Course for more in depth knowledge!
Related Articles –
Understanding FSBO: Pros and Cons
Different Negotiation Techniques for Buyers
Skills You Will Learn in an In-Person FSBO Course for Home Buying
Wrapping Up: Importance of the Fair Housing Act for FSBO Transactions
You should know about the Fair Housing Act when you are buying or selling a home, it will ensure that everyone has a fair and equal opportunity in the housing market. From how you advertise your property to how you interact with potential buyers, you must avoid any form of discrimination based on race, color, national origin, religion, sex, familial status, or disability.
For buyers, the Act provides strong protections, ensuring you can search for a home without fear of being treated unfairly. You are entitled to equal treatment, and you have the right to request accommodations if you have a disability. It’s also important to know that lenders cannot discriminate against you during the financing process.
