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A Fair Housing Primer
Understanding Fair Housing Law for Maryland REALTORS®
BY CLEOPATRA PAPPAS, ESQ.
What is “Fair Housing?”
It means that everyone has the same opportunity to buy or rent a home, no matter who they are. These laws protect people from being treated unfairly when looking for a place to live. Fair Housing helps create stronger, more inclusive communities where everyone has access to safe and affordable housing. When people are treated fairly, neighborhoods grow, families thrive, and all Americans benefit from equal opportunities.
As a REALTOR® in Maryland, understanding Fair Housing laws is essential. These laws ensure equal access to housing and prevent discrimination. Federal, state, and local laws protect various groups of people from unfair treatment in housing-related transactions. This article provide an overview of the key laws and protections you need to know.
Federal Fair Housing Laws
The federal government began enacting fair housing laws in 1866 to address and combat racial discrimination in housing, aiming to ensure that all citizens regardless of race had the same rights to inherit, purchase, lease, sell, hold, and convey real property in the United States. Over time, additional legislation was enacted to further prohibit other types of discrimination. These laws were essential in promoting equal housing opportunities and addressing the systemic inequalities that had persisted for decades. The following are key laws furthering fair housing goals for all:
Civil Rights Act of 1866. The Civil Rights Act of 1866 was the first law to address housing discrimination. It states that all citizens have the same rights to buy, sell, lease, or hold property, regardless of race.
Executive Order 11063 (1962). Signed by President John F. Kennedy, this order prohibited discrimination in housing financed by the federal government. understanding Fair Housing laws is essential. These laws ensure equal access to housing and prevent discrimination.
Civil Rights Act of 1964. This law banned discrimination in programs that receive federal funds, including some housing programs.
The Fair Housing Act (1968). Title VIII of the Civil Rights Act of 1968, commonly known as the Fair Housing Act, made it illegal to discriminate in the sale, rental, or financing of housing based on race, color, religion, or national origin. It also established the framework for enforcement mechanisms.
Fair Housing Amendments Act of 1988. This law expanded protections by adding familial status (families with children) and disability as protected classes. It also strengthened enforcement mechanisms and penalties for violations.
Protected Classes Under Fair Housing Laws
Federal law protects individuals from housing discrimination based on:
Race
Color
Religion
National Origin
Sex (Gender)
Familial Status
Disability
Exemptions to Fair Housing Laws
Some verylimited housing situations are exempt from these laws:
The “Mrs. Murphy” exemption is a provision in the Fair Housing Act (FHA) that allows certain small property owners to be exempt from some of the Act’s requirements. The exemption applies to property owners who 1) own a dwelling with four or fewer rental units, and 2) live in one of those units.
Religious organizations that provide housing for members, as long as they do not discriminate based on race, color, or national origin.
Private clubs that provide housing for members only.
However, even if an exemption applies, discriminatory advertising and statements remain illegal. Additionally, keep in mind: Maryland licensees are NEVER exempt from any fair housing laws.
MarylandFairHousingLaws
Maryland’s fair housing laws are similar to federal laws but offer additional protections. In Maryland, it is also illegal to discriminate based on:
Marital status
Sexual orientation
Gender identity
Source of income
Military Status
Several Maryland counties and local jurisdictions have enacted other categories offering fair housing legal protection. You can access the Maryland REALTORS®’ Fair Housing brochure, in English and Spanish on our Fair Housing webpage.
What to Do If Your Client Faces Discrimination in Lending or Housing Applications
If you believe a buyer or tenant has been unfairly denied a loan or housing due to discrimination, follow these steps:
1. Educate your client. Let them know their rights under the Fair Housing Act and the Equal Credit Opportunity Act to protect them from discrimination.
2. Report it internally. Inform your broker about the situation so they can provide guidance.
3. Communicate with the lender. Speak with the loan officer or housing provider to address your concerns and clarify the issue.
4. Keep records. Write down what happened, including conversations, emails, or any actions you took to resolve the issue.
5. Advise your client on next steps. If discrimination persists, inform your client that they can file a complaint with:
• HUD (U.S. Department of Housing and Urban Development)
• State or local civil rights agencies
• A private fair housing organization
6. Consider legal help. You or your client may also want to consult with an attorney for legal advice.
This approach ensures you protect your client’s rights while following fair housing laws.
HISTORY: If you don't know it, you are doomed to repeat it.
How did we get here? Exclusionary practices in housing did not happen by accident. For decades, the federal government, banks, real estate brokerages ,and real estate boards ensured that certain people would be kept out of new homes and flourishing neighborhoods based upon their race, religion, or national origin.
Restrictive Covenants. These were legal agreements written into property deeds that prohibited homeowners from selling to certain racial or ethnic groups, keeping neighborhoods segregated. While unenforceable today, their legacy still impacts housing patterns.
Redlining. Banks and lenders would refuse loans or insurance to people in predominantly Black or immigrant neighborhoods, marking these areas in red on maps. This practice denied many families the opportunity to buy homes and build generational wealth.
The GI Bill. After World War II, the GI Bill helped veterans buy homes, but discriminatory lending and housing policies meant that Black veterans were often denied these benefits, worsening racial wealth gaps.
Blockbusting. Real estate agents would spread fear among white homeowners that Black families were moving into their neighborhoods, pressuring them to sell at low prices. These homes were then resold to Black families at inflated prices, exploiting both groups.
Land Contract Sales. Many Black and immigrant homebuyers, denied traditional mortgages, were forced into unfair land contracts, which had high payments and no equity. If they missed a single payment, they lost the home and everything they had invested.
The Rise of Suburbia. Government-backed loans and highway expansion helped develop suburbs, but these programs often excluded people of color through discriminatory zoning, lending, and homeowner association rules.
Cost of Segregation. Segregation has long term social and economic impacts, including lower property values, underfunded schools, and fewer job opportunities in minority-majority communities.
Article 34 of the NAR Code of Ethics. Until it was removed in 1950, this rule forbade REALTORS® from integrating neighborhoods, essentially enforcing segregation in housing.
Maryland Board Contracts. Some historical real estate contracts in Maryland contained discriminatory clauses or practices that made it harder for minority buyers to purchase homes, reinforcing segregation and unequal access to housing.
Pocket Listings. These are off-market home sales where agents only share listings with select buyers, often excluding minority buyers and reducing fair housing opportunities. This practice can limit access to housing for those who are not in exclusive networks.
Steering. REALTORS® direct buyers toward or away from neighborhoods based on race, religion, or ethnicity, often under the pretense of “helping” them find the “right” community. This is illegal under the Fair Housing Act.
Source of Income Discrimination. Some landlords refuse to rent to tenants who rely on housing vouchers, disability benefits, or other legal income sources, disproportionately affecting low-income and minority renters. Maryland law prohibits this discrimination.
Love Letters. Personal letters from buyers to sellers may seem harmless, but they can reveal race, religion, or family status, leading to unconscious bias in home sales. Fair housing advocates discourage them, to ensure unbiased decision-making.
By understanding these practices, real estate professionals can work to ensure fair, equal access to housing for all.
Enforcement of Fair Housing Laws
Both the U.S. Department of Housing and Urban Development (HUD) and the Maryland Commission on Civil Rights (MCCR) enforce fair housing laws. Complaints can be filed with either agency if discrimination occurs. Violations can result in fines, legal and criminal actions, and mandated corrective measures for offenders.
3 hot topics and key rules landlords must follow regarding Fair Housing and Rentals:
1. Reasonable Accommodations for Persons with Disabilities
Landlords must make reasonable changes to rules, policies, or services if needed for a person with a disability to have equal access to housing. If a tenant requests a reasonable modification to the property, such as installing a ramp, the landlord must allow it—at the tenant’s expense. However, landlords may require tenants to restore the interior when they move out, except for normal wear and tear.
2. Assistance Animals
Landlords must allow service animals and emotional support animals as a reasonable accommodation, even if they have a “no pets” policy. They cannot charge pet fees or deposits for these animals. However, landlords can request documentation if the disability and need for the animal are not obvious but cannot ask for medical records or demand certification. See our guidance on emotional support animals, page 27.
3. Housing Vouchers
In many states, including Maryland, landlords cannot refuse tenants just because they use housing vouchers or other legal sources of income. They must apply the same screening criteria to all applicants and cannot set different terms (like charging higher rent) just because a tenant uses a voucher.
Fair Housing Best Practices for Real Estate Agents
Follow the “Platinum Rule.” Treat others as they want to be treated, ensuring fairness and respect for all.
Educate Clients. From your first meeting, inform buyers and sellers about fair housing laws using NAR and Maryland REALTORS® resources. Read through the fair housing paragraphs in the listings for sale/lease and buyer/tenant agency agreements with your clients.
Treat Everyone Equally. Use standardized forms and checklists to ask the same questions and request the same information from all prospects.
Use Inclusive Language. Choose appropriate vocabulary and definitions when discussing housing to avoid discrimination.
Let Buyers Choose. Allow buyers to select their own neighborhoods based on their preferences— never assume or steer them toward certain areas.
Base Listings on Objective Criteria. Provide listings only based on a client’s stated needs and preferences, not assumptions.
Follow Fair Housing Advertising Guidelines. Use an advertising checklist to ensure compliance with fair housing laws.
Market to a Wide Audience. Promote properties to a diverse group of potential buyers to encourage inclusivity.
Avoid Discriminatory Advertising. Do not use exclusionary words, phrases, or images in marketing materials.
Display the Equal Housing Opportunity Logo. Include the fair housing logo in marketing materials to show commitment to non-discriminatory practices.
Commit to Fair Housing. Continuously promote and uphold fair housing principles in all real estate transactions.
A strong commitment to fair housing practices not only upholds legal standards but also fosters trust and credibility in the real estate industry.
How Real Estate Agents Can Ensure Compliance
Real estate agents play a crucial role in upholding fair housing laws. To remain compliant, agents should:
Educate themselves and clients about fair housing laws and prohibited practices.
Avoid discriminatory advertising that suggests a preference for or against certain groups. Closely related, see page 24, CEO Chuck Kasky’s column, about the professional and personal use of social media.
Treat all clients equally, offering the same level of service and opportunities to all.
Stay informed on updates to housing laws, including Maryland-specific regulations.
Report violations and avoid engaging in any discriminatory practices, even if requested by a client or property owner.
Final Thoughts
Understanding and following Fair Housing laws is critical for Maryland real estate agents. These laws ensure that all individuals have equal access to housing opportunities. By staying informed and adhering to these protections, you help create a fair and inclusive housing market for all. A strong commitment to fair housing practices not only upholds legal standards but also fosters trust and credibility in the real estate industry.
Fair Housing Resources
The following resources will help you with understanding and working with Fair Housing laws.
Cleopatra Pappas, Esq., is the Senior Associate Counsel at Maryland REALTORS®.
