2.3 Fair Housing in Tennessee

Fair housing prohibits discrimination in residential transactions. Tennessee licensees are bound by federal law and the Tennessee Human Rights Act (THRA), and TREC treats fair-housing violations as grounds for discipline.

Federal Fair Housing Act - Seven Protected Classes

The federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968, as amended) protects seven classes:

Memory aid: R-C-R-N-S-F-D. HUD currently enforces 'sex' to include sexual orientation and gender identity. The exam's baseline answer for the number of federal protected classes is seven.

Exam point: Age and marital status are not federal protected classes. 'Familial status' protects households with minor children, which is different from age.

Tennessee Human Rights Act (THRA)

The THRA is Tennessee's state fair-housing law and is enforced by the Tennessee Human Rights Commission (THRC), which has a cooperative (substantially equivalent) relationship with HUD. The THRA prohibits housing discrimination on the basis of:

• Race, color, religion (creed), sex, national origin
• Familial status and disability

The THRA closely mirrors the federal classes and adds creed. A consumer may file a complaint with HUD or the THRC, generally within one year of the discriminatory act.

Note: A licensee who discriminates can face HUD/THRC penalties and TREC discipline for the same act.

Prohibited Practices

The exam expects you to identify these by definition:

Advertising trap: Phrases like 'perfect for a young couple,' 'adult building,' or 'walking distance to a church' can imply familial-status, age, or religious preference and violate fair-housing advertising rules. Describe the property, not the ideal buyer.

Disability: Accommodations and Modifications

For persons with disabilities, two distinct rights are tested:

Key point: An assistance animal (service or support animal) is not a pet. A no-pets policy and pet deposits do not apply, though the tenant remains responsible for actual damage. New multifamily construction also has accessibility design requirements.

Limited Exemptions (and Why They Rarely Help a Licensee)

The federal Act has narrow exemptions, but they collapse whenever a real estate licensee or discriminatory advertising is involved.

Critical: Race is never exempt. The 1866 Civil Rights Act bars all racial discrimination in property with no exemptions. And because licensees are always 'using a broker,' a Tennessee agent cannot rely on the Mrs. Murphy or for-sale-by-owner exemptions, and may never place or follow a discriminatory instruction.

What a Tennessee Licensee Must Do

• Treat all clients and customers equally; never steer.
• Refuse any client instruction to discriminate (you cannot 'just follow the seller's wishes').
• Keep advertising about the property, not the buyer.
• Honor reasonable accommodation/modification requests and assistance animals.
• Display fair-housing/equal-opportunity information as required.

Equal Service Is the Operating Rule

The simplest way to answer most fair-housing questions is to ask whether the licensee is providing equal professional service regardless of a protected class. Offering the same information, showing the same range of properties, quoting the same terms, and never editorializing about 'who lives there' keeps a licensee compliant. The violations - steering, blockbusting, redlining, discriminatory advertising, and refusing to deal - are all departures from equal service driven by a protected characteristic.

A frequent trap is the 'client's wishes' scenario: a seller instructs the agent not to show the home to members of a particular group, or a landlord says 'no kids.' A licensee may never follow such an instruction, even from a paying client, and following it is itself a violation. The licensee's duty to obey the client is always limited to lawful instructions, and a discriminatory instruction is unlawful. The correct response is to decline the instruction and, if necessary, withdraw from the representation.

Disability, Advertising, and Enforcement Nuances

Disability questions hinge on the difference between an accommodation (a change in rules, usually at the provider's expense, like waiving a no-pets policy for an assistance animal) and a modification (a physical change, usually at the tenant's expense, like a ramp). Assistance animals are not pets, so pet fees do not apply, though the resident remains responsible for actual damage. New multifamily construction must also meet accessible-design standards.

Advertising questions reward describing the property rather than the ideal occupant - 'two bedrooms, ground floor, near transit' is safe, while 'great for a young Christian family' implies familial-status and religious preferences.

On enforcement, remember the layered structure: a complainant may go to HUD or the Tennessee Human Rights Commission, generally within one year, and the same conduct can independently support TREC discipline. Race is protected absolutely under the 1866 Civil Rights Act with no exemptions, and because a licensee is always involved, the narrow 'Mrs. Murphy' and for-sale-by-owner exemptions are unavailable to agents. When two answer choices look close, the one that treats all consumers equally and refuses to discriminate is almost always correct.