# Federal Real Estate Law > The Fair Housing Act's protected classes, the practices it prohibits, and the other federal laws that shape every transaction. **Source:** https://www.texasreprep.com/learn/texas-real-estate/national-federal-real-estate-law **Published:** 2026-08-24 **Updated:** 2026-09-02 Texas RE PREP™ — independent practice for the Texas real estate license exam, National (Uniform) and Texas State portions. Not affiliated with, endorsed by or operated by the Texas Real Estate Commission (TREC) or Pearson VUE, who administer the actual exam. --- Federal real estate law is tested harder than almost any other national-portion topic, because getting it wrong in practice creates real legal exposure — not just a missed exam question. ## The Fair Housing Act's seven protected classes Race · Color · Religion · Sex National Origin · Familial Status · Disability Familial status and disability were added later, by the 1988 amendments ## Three practices to know by name SteeringDirecting buyers toward or away from a neighborhood based on a protected class. BlockbustingInducing panic selling by suggesting a protected class moving in will hurt property values. RedliningDenying or limiting loans (or insurance) to an area based on its racial or ethnic makeup. All three are illegal regardless of whether the agent believes they're being helpful — a well-intentioned agent who only shows a family with children listings near parks and schools is still steering. ## Reasonable accommodation vs. reasonable modification These two disability-related duties get confused constantly: Policy vs. physical change **Reasonable accommodation** is an exception to a policy or rule — like waiving a no-pets policy for an assistance animal. **Reasonable modification** is an actual physical change to the unit, like a wheelchair ramp. In most private housing, the landlord generally bears the cost of an accommodation; the tenant generally bears the cost of a modification. ## Exemptions exist — but they're narrow The Fair Housing Act has a handful of recognized exemptions: certain small owner-occupied dwellings (the "Mrs. Murphy" exemption), religious organizations housing their own members, and qualifying housing for older persons. Every one of these exemptions is narrower than it sounds — the Mrs. Murphy exemption disappears the moment a licensed agent is used to find a tenant, and the religious exemption never extends to racial discrimination even when it otherwise applies. ## Housing for older persons — the exemption has two versions The "housing for older persons" exemption from familial-status discrimination isn't one simple rule — it generally requires satisfying specific, defined conditions, and there are two recognized versions: - **62-and-older housing** — every resident must generally be 62 or older, with essentially no exceptions. - **55-and-older housing** — at least 80% of occupied units must generally have at least one resident 55 or older, and the community must generally publish and adhere to policies demonstrating an intent to operate as 55-and-older housing, not merely claim the label informally. A community that doesn't actually satisfy one of these specific frameworks can't just decide to exclude families with children by calling itself an "adult community" — the exemption is earned by meeting defined conditions, not claimed by preference. ## How fair housing complaints actually get enforced A fair housing violation can be pursued through more than one channel, and the exam expects you to know they aren't mutually exclusive: HUD administrative complaintA person who believes they've experienced discrimination can file a complaint with the Department of Housing and Urban Development, which investigates and can pursue an administrative hearing. Private civil lawsuitA person can also sue directly in federal court, independent of whether they've filed with HUD at all. DOJ pattern-or-practice suitThe Department of Justice can separately sue when it identifies a broader pattern or practice of discrimination, not just a single incident. ## The other federal statutes on the exam - **ADA** — accessibility in public accommodations (a real estate office, not a private home) and, separately, employer obligations under Title I. - **Civil Rights Act of 1866** — prohibits race discrimination in property transactions with no exemptions at all, reaching even purely private transactions. - **ECOA** — prohibits credit discrimination, covering some bases (like age) that the Fair Housing Act doesn't. Quick Check An agent shows a family with young children listings only in neighborhoods near parks and schools, genuinely believing it will help them. Is this generally still steering? Generally yes — steering is illegal regardless of the agent's motive, and familial status is a protected class Generally no — good intentions generally excuse an otherwise-illegal practice Generally no — steering only applies to race, not familial status Generally yes, but only if the family actually complains about it Steering based on any protected class — including familial status — is illegal regardless of the agent's intent. A benign motive doesn't change the legal analysis, and no complaint is required for the practice itself to be a violation.