Question 29

Federal civil rights legislation permits an unlicensed landlord to rent only to women if the rental is a bedroom in the landlord's own house and no advertising is used.

This legislation allows for specific exemptions under certain conditions, such as when a landlord rents out a room in their own home without public advertising, thereby permitting discrimination based on sex in this limited context.

A) a lender to use forms and records that refer to a loan applicant's race, color, religion, sex, or national origin

This option is incorrect as federal civil rights legislation prohibits lenders from using discriminatory practices based on race, color, religion, sex, or national origin in evaluating loan applications. Such practices would violate the Fair Housing Act and other anti-discrimination laws.

B) an unlicensed landlord to rent only to women if the rental is a bedroom in the landlord's own house and no advertising is used

This option is correct because federal civil rights legislation includes provisions that allow for certain exemptions in housing discrimination laws, particularly in situations where the landlord occupies the residence and does not engage in public advertising. This creates a limited exception for gender-based rental decisions.

C) a broker to inform a minority prospect that a house is unavailable for sale when, in fact, it is available

This option is incorrect as it constitutes discriminatory practices against minority individuals. Under federal civil rights legislation, it is illegal for brokers to engage in deceptive practices that deny access to housing based on race or ethnicity.

D) a broker to imply that the racial composition of a neighborhood is going to change, thus encouraging homeowners in that neighborhood to list their homes with that broker

This option is also incorrect because it promotes discriminatory practices through steering, which is prohibited under federal civil rights legislation. Brokers cannot imply or suggest that a change in racial composition is imminent as a tactic to manipulate homeowners into selling.

Conclusion

The correct answer, option B, highlights a specific exemption in federal civil rights legislation that permits limited discrimination under certain conditions. In contrast, all other options reflect practices that violate anti-discrimination laws, emphasizing the importance of understanding legal boundaries in housing and lending practices.