The civil rights laws that affect the real estate industry ensure that everyone has the opportunity to live where they choose. Federal, state, and local fair housing or equal opportunity laws affect every phase of a real estate transaction, from listing to closing. However, while the passage of laws may establish a code for public conduct, damaging attitudes reinforced by centuries of discrimination are not so easily eliminated.
Real estate licensees must eliminate actions or words that create discrimination (or the appearance of discrimination) if they wish to conduct an ethical and legal business. Real Estate Licensees are held to a higher standard in terms of discrimination that an average citizen. At times, restraints on information a licensee can provide a client may hint at or support steering, so licensees cannot provide that information, by law. Similarly, any discriminatory attitudes of property owners or property seekers must be addressed by the licensee if these attitudes affect compliance with fair housing laws.
The Illinois Real Estate License Act of 2000 and the general rules require that licensees fully adhere to the principles of equal housing opportunity. A licensee is prohibited from taking any listing or participating in any transaction in which the property owner seeks to discriminate based on race, color, ancestry, religion, national origin, sex, handicap, or familial status.
Breaking fair housing laws in Illinois is a criminal act and grounds for discipline. Violating provisions or restrictions of the Illinois Real Estate License Act of 2000 (or the rules) can result in suspension, nonrenewal, or revocation of the violator’s license or censure, reprimand, or fine imposed by IDFPR.
The Real Estate License Act of 2000 requires that when a judgment in either a civil or criminal proceeding has been made against a licensee for illegally discriminating, his license must be suspended or revoked unless an appeal is active. Finally, if there has already been an order by an administrative agency finding discrimination by a licensee, the board must penalize the licensee.
In addition to state and federal laws, many cities and villages in Illinois have their own fair housing laws. These laws are enforced on the local level and may take precedence over federal laws when the local law has been ruled substantially equivalent to the federal statute. Many local fair housing laws are stricter than state or federal laws. The strictest law is the one that is enforced. Licensees should be familiar with local regulations as well as with state and federal law.
Federal Laws
The federal government’s effort to guarantee equal housing opportunities to all U.S. citizens began with the passage of the Civil Rights Act of 1866. This law prohibits any type of discrimination based on race.
The U.S. Supreme Court’s 1896 decision in Plessy v. Ferguson established the “separate but equal” doctrine of “legalized” racial segregation. A series of court decisions and federal laws in the 20 years between 1948 and 1968 attempted to address housing inequities resulting from Plessy. Those efforts, however, often addressed only specific aspects of the housing market (such as federally funded housing programs). As a result, their impact was limited.
Title VIII of the Civil Rights Act of 1968, however, prohibited specific discriminatory practices throughout the real estate industry.
