Author: ft Editorial Staff

Civil rights and fair housing laws

This article outlines the federal and California anti-discrimination laws and how the laws affect the rental of residential property. Property rights cannot be based on status All citizens of the United States have the right to rent real estate, regardless of race. [42 United States Code §1982] Further, all persons within the United States, legally or illegally, have the same rights to make and enforce contracts (rental and lease agreements), sue, be sued, and enjoy the full benefits of the law. All are subject to the same punishments, penalties, taxes and licenses, regardless of race. [42 USC §1981] The Civil Rights Act applies to racial discrimination on the rental of all types of real estate, both residential and nonresidential. Thus, the right to lease real estate is protected by giving all persons the right to make and enforce contracts, regardless of race. Thus, racially motivated activities in any real estate leasing transaction are prohibited. The Civil Rights Act protects against racial discrimination in all activities between persons, and is much broader than the protection under the Federal Fair Housing Act, which is limited to dwellings. Anti-discrimination legislation for residential property The Federal Fair Housing Act (FFHA) prohibits unlawful discrimination in the rental or advertisement of dwellings for rent. [42 USC §§3601 et seq.] A dwelling includes any building or structure that is occupied, or designed to be occupied, as...

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Seniors-only housing

This article covers acceptable and unacceptable age discrimination in California housing. California’s fair housing laws A landlord of an apartment complex with an adults-only rental policy enters into a lease with a pregnant tenant. The lease contains a provision stating no person under 18 years of age can reside in the leased unit. The tenant gives birth prior to the expiration of the lease.   Civil rights and fair housing laws prohibit landlords from practicing discrimination when locating tenants for a property. The landlord immediately serves the tenant with a 3-day notice to remove the child from the premises or vacate. The tenant does neither. The landlord files an unlawful detainer to evict the tenant since the tenant remains in possession and has failed to perform under the notice. The tenant claims she cannot be evicted since the adults-only policy is an unlawful discriminatory practice and violates the child’s civil rights. Can the tenant avoid the landlord’s adults-only policy agreed to in the lease? Yes! The landlord cannot refuse to rent based on age unless the person can be excluded under senior citizen housing laws. The landlord’s adults-only policy violates California’s Unruh Civil Rights Act. [Marina Point, Ltd. v. Wolfson (1982) 30 C3d 721] Civil rights and fair housing laws prohibit landlords, property managers and leasing agents from practicing any discrimination (which is prohibited because of the protected status...

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Due-on waiver and the carryback seller

This article discusses the need for carryback sellers to negotiate a waiver of the senior lender’s due-on clause on a sale subject to its trust deed loan. Prior planning prevents a call A seller of real estate encumbered with a first trust deed lists the property for sale with his broker. The trust deed contains a due-on clause. Later, the broker presents the seller with a purchase offer from a buyer on terms which include: a cash down payment; an assumption of the existing first trust deed by the buyer; and a carryback note executed by the buyer in favor of the seller for the balance of the purchase price, to be secured by a second trust deed on the property. The seller accepts the offer, and a sales escrow is opened. As part of their instructions, escrow then requests a loan assumption package from the lender who holds the note secured by the existing trust deed.Before the close of escrow, the lender approves the sale on one condition: the buyer assumes the loan obligation and agrees to a modification of the interest rate and payment schedule in the note.   By consenting to the conveyance of secured property, the lender has, by its conduct, waived its rights under the due-on clause. The buyer agrees to the lender’s demands and signs a loan assumption and note modification agreement. The...

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The broker’s use of supervisors

This article explains the broker’s continuing responsibilities when delegating his supervisory duties to an office manager or transaction coordinator. Supervision delegated, not agency A salesperson employed by a broker is the agent of the broker, not the client. In turn, the broker is the agent of the client. As an agent representing the broker, a real estate salesperson is authorized to prepare listings, sales documents, disclosure sheets, etc., on behalf of the broker.   The broker may employ others to carry out his supervisory responsibility to review documents and maintain files. The DRE’s supervisory scheme requires the broker to reasonably supervise a salesperson’s activities. Reasonable supervision includes establishing policies, rules, procedures and statements to review and manage: transactions requiring a real estate license;   documents having a material effect upon the rights or obligations of a party to the transaction;   the filing, storage and maintenance of documents;   the handling of trust funds;   the advertisement of services that require a license;   the salesperson’s knowledge of anti-discrimination laws; and   the reports of the activities of the salespersons. [Department of Real Estate Regulation §2725] The broker may employ others to carry out his supervisory responsibility to review documents and maintain files, including: another licensed real estate broker; or a real estate salesperson employed by the broker. [DRE Reg. §2725] The review of documents and file maintenance should not just be a mechanical function...

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Community property

This article discusses the effect a marriage has on a spouse’s ability to sell real estate. The broker’s role A broker who represents a married person in the sale, lease or financing of community real estate must know whether the married person can avoid performing under a listing (paying the brokerage fee) or under a transactional purchase agreement (closing escrow) by raising community property defenses in order to inflict a loss on the broker. For example, a broker obtains an exclusive right-to-sell listing signed only by the wife. The real estate listed is community property, vested in the name of the husband and wife as joint tenants. During the listing period, the husband and wife sell the property without the aid of the listing broker. The listing entitles the broker to a fee if the property is sold by anyone during the listing period. [See first tuesday Form 102 §4.1(a)] The broker claims both the husband and wife are liable for the brokerage fee since the property was sold during the listing period. The wife claims the listing is unenforceable without the husband’s signature since the property listed cannot be sold and conveyed without her husband’s written consent.  Is the broker entitled to his fee? Yes! While the husband, who did not sign the listing agreement, is not personally liable for the brokerage fee, the wife is liable for...

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Recent Comments

  • John Pursell Ian, You have good intentions, but fail to understand that commercial and industrial property does not move in the same manner as residential property. An... – California’s Prop 13 is broken
  • John Pursell Yes, we have a Snowflake vs a Despicable . You haven't made any money until you sell the property-----------so the taxed go up when that... – California’s Prop 13 is broken
  • G. West And another thing, there is no state in the US that needs this protection as much as California because CALPERS is underfunded to the tune... – California’s Prop 13 is broken
  • G. West Only a young, brainwashed, snowflake could write an article like this. Total propaganda. She cites one of the reasons Prop 13 is broken is that... – California’s Prop 13 is broken
  • one warner Ben, my YES !!! above was intended for YOUR comment. I clicked wrong. Discriminating in the application of the law should be considered a violation... – California’s Prop 13 is broken
  • one warner "Prop 13 has failed to rein in California’s public sector. " From the linked Tax Foundation article, which also states that California in 1978 (pre-Prop... – California’s Prop 13 is broken
  • one warner Carrie B. Reyes apparently did not read her own referenced source material. The article linked about Michael Dell includes a CORRECTION that it was the... – California’s Prop 13 is broken
  • one warner Ian, you have good intentions. But your youth and inexperience does not make your defective logic "commonsense". Chevron is NOT "undertaxed". But if you increase... – California’s Prop 13 is broken
  • one warner Thank you for a much needed history lesson. – California’s Prop 13 is broken

Featured Comment

[M]ost people join CAR in order to obtain the forms, not for the other services. And if there were any viable choices for agents, CAR would immediately suffer as much as a 40% to 50% loss in membership. […] CAR owns the “for profit” company that produces their software, with top officers in CAR sitting in top management spots in ZipLogix. This is the living, breathing definition of a conflict of interest. […] On their website they parade their forms software as “free” when cost of their forms software for non-members as a percentage of their actual membership cost speaks for itself.

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