Page 485 - Principals of Real Estate

Unit 13 Real Estate Brokerage 475

Housing Financial Discrimination Act

The Housing Financial Discrimination Act (Holden Act) prohibits all
financial institutions from discriminating in real estate loan approvals based
on the geographic location, the neighborhood, or any other characteristic of
the property. In particular, redlining—the practice of disapproving real estate
loans in economically or physically blighted areas—is forbidden unless it can
be proved to be based on sound business practice. Violations may be reported
to the state Secretary for Business and Transportation, who must act on the
complaint within 30 days.

California Civil Code (Section 54-55.1)

This section of the Civil Code prohibits discrimination in the rental, leasing,
or sale of housing accommodations to the blind, visually handicapped, deaf,
or otherwise physically disabled. It also precludes restrictions on seeing-eye
dogs and signal dogs from no pet clauses.

Commissioner’s Regulations

The California Real Estate Commissioner has made it very clear that a person’s
real estate license will be restricted, suspended, or revoked for any violation of
the fair housing laws. The Commissioner regulates all aspects of the real estate
transaction from prospecting for listings through the closing of the transaction.
In fact, every conceivable activity is regulated.

Activities Prohibited by Regulation 2780

• Refusing to list and show properties to selected people
• Processing some applications more slowly than others
• Stating to some people that property is not available when it is
• Using special codes on applications
• Actively discouraging other licensees from working with

minorities
• Charging more for the cleaning or security deposit to some

applicants
• Assisting other licensees to discriminate

Regulation 2781 Prohibits Blockbusting
Licensees are prohibited from creating fear, alarm, or transmitting written or
oral warnings regarding the present or prospective entry of one or more persons
of another race, color, sex, religion, ancestry, marital status, or national origin
into an area or neighborhood.