National Real Estate Practice Exam

What is a notable exception under the Federal Fair Housing Act?

1. Multi-family units owned by a corporation

2. Religious organizations renting out their property

3. Government-owned properties

4. Properties listed by real estate agents

The correct answer is: Religious organizations renting out their property

The Federal Fair Housing Act includes certain exceptions which allow for some flexibility in specific situations. One notable exception is the provision that allows religious organizations to rent out property owned by the organization without being subjected to the same obligations under the Act. This is because the federal law recognizes the right of religious organizations to operate their properties in a manner that reflects their values and doctrines, allowing them to provide housing specifically to members of their faith or adhere to their religious beliefs. In contrast, multi-family units owned by a corporation, government-owned properties, and properties listed by real estate agents typically fall under the purview of the Fair Housing Act, requiring compliance with anti-discrimination laws in terms of tenant selection and leasing practices. These properties do not enjoy the same religious-specific exemptions, as they are often considered public or commercial entities that must adhere to fair housing standards.