Industry News

As Realtors®, we hold a unique and vital responsibility to uphold ethical standards and legal obligations while fostering a fair and inclusive housing market. Recent settlements highlight the critical importance of adhering to both the National Association of Realtors® (NAR) Code of Ethics and the New Jersey Law Against Discrimination (LAD).

Recent Settlements: A Wake-Up Call

The New Jersey Office of the Attorney General and the Division on Civil Rights have recently reached settlements in four housing discrimination cases involving organizations in NJ. These cases underscore the need for vigilance in preventing discriminatory practices and ensuring compliance with all relevant laws and ethical guidelines.

Key Takeaways from the Settlements

  1. Awareness of Discriminatory Practices: The settlements involved allegations of discrimination based on race, source of income, and familial status. These cases remind us that discrimination can manifest in various forms, intentionally or unintentionally.

  2. Training and Education: The involved organizations have agreed to implement comprehensive training programs to prevent future violations. This highlights the importance of continuous education for all real estate professionals to stay informed about legal requirements and ethical standards.

Risk Reduction Tips for Realtors®

To mitigate risks and ensure compliance, Realtors® should consider the following best practices:

  1. Understand and Adhere to the Code of Ethics: Familiarize yourself with the 2024 Code of Ethics and Standards of Practice. Key articles relevant to preventing discrimination include:

  2. Article 1: Protect and promote your client's interests while treating all parties honestly.

  3. Article 10: Do not deny equal professional services to any person for reasons of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity.

  4. Know the New Jersey Law Against Discrimination (LAD): The LAD prohibits discrimination in housing based on various protected characteristics, including race, religion, sex, disability, and source of lawful income (such as Section 8 vouchers). Ensure you are familiar with these provisions and incorporate them into your practice.

  5. Understand the Fair Chance in Housing Act (FCHA): Effective January 1, 2022, the FCHA aims to ensure that individuals with criminal records have a fair chance to obtain housing. This act prohibits landlords from discriminating against applicants based on their criminal history.

  6. Distribute the Required Fair Housing Notice: The New Jersey Real Estate Commission (REC) mandates that every licensed broker or salesperson must provide clients with a copy of the Attorney General's Fair Housing Letter. This notice helps clients comply with the LAD and the FCHA. Ensure you provide this notice to all clients when listing their properties.

  7. Avoid Discrimination in Representations: Do not represent landlords who refuse to accept tenants based on their source of income, such as Section 8 vouchers. Doing so violates the LAD and can lead to legal repercussions.

  8. Example: A landlord states they will not rent to anyone using Section 8 vouchers. As a Realtor®, you must inform the landlord that this practice is illegal and refuse to represent them if they insist on this policy.

  9. Provide Equal Service to All Clients: Ensure that all clients receive the same level of service, regardless of their background or circumstances. This includes showing all available properties to every client and providing equal opportunities for securing housing.

  10. Implement Fair Housing Practices in Your Business: Regularly review and update your business practices to ensure they align with fair housing laws. This can include:

  11. Developing written policies that prohibit discrimination.

  12. Training staff and agents on fair housing laws and ethical standards.

  13. Monitoring compliance through regular audits and evaluations.

  14. Document Your Actions: Keep detailed records of interactions with clients and landlords. Documentation can provide evidence of compliance and help defend against allegations of discrimination.

  15. Training and Education at NCJAR: Ensure that your company, agents, and employees receive adequate training on fair housing and ethics. NCJAR offers a variety of educational courses to help you stay compliant and informed. You can view and register for courses through the NCJAR course calendar.

  16. Review the Required Fair Housing Resource: The New Jersey Real Estate Commission (NJ REC) requires all real estate professionals to review the Fair Housing Letter from the Attorney General. This letter provides essential guidance on fair housing laws and practices. Make sure you have read and understood the contents of the 2021 Attorney General Fair Housing Letter.

Conclusion

Upholding the principles of fairness and equality is essential in our profession. By understanding and adhering to the NAR Code of Ethics and the New Jersey Law Against Discrimination, we can protect our clients, our business, and our profession. Let's commit to fostering an inclusive housing market where everyone has the opportunity to find their perfect home.

For more information on housing discrimination laws and best practices, please visit the New Jersey Division on Civil Rights and the NAR Code of Ethics.

Stay informed, stay compliant, and continue to champion fair housing for all.