Good and Bad Demographic Information from Fair Housing Point of View

Recent reports are that providing racial demographic maps to buyer clients can lead to the REALTOR® being accused of racial steering and fair housing violations.

While NAR Code of Ethics allow REALTORS® to provide good demographic information, REALTORS® may not provide race, religion or ethnic information.

Good demographic information is information that does not aid in the discrimination of protected classes (race, color, religion, sex, national origin, familial status, disability…plus gender identity and sexual orientation).

Good demographic information can include population: education levels, income levels, employment status, occupations, perceived socio-economic status, criminal records, density, urban, rural, union membership, household income, politics, homeownership rates, length of time at residence, primary home, vacation home, rental home, length of ownership.

Demographic information that is higher risk for fair housing accusations because it can be code for protected classes: marital status, kids, age, birth rate, death rate, free lunches in schools, size of household, single head of household, home language spoken.

REALTOR Code of Ethics: Article 10

REALTORS® shall 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. REALTORS® shall not be parties to any plan or agreement to discriminate against a person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. (Amended 1/14)

REALTORS®, in their real estate employment practices, shall not discriminate against any person or persons on the basis of race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. (Amended 1/14)

• Standard of Practice 10-1
When involved in the sale or lease of a residence, REALTORS® shall not volunteer information regarding the racial, religious or ethnic composition of any neighborhood nor shall they engage in any activity which may result in panic selling, however, REALTORS® may provide other demographic information. (Adopted 1/94, Amended 1/06)

• Standard of Practice 10-2
When not involved in the sale or lease of a residence, REALTORS® may provide demographic information related to a property, transaction or professional assignment to a party if such demographic information is (a) deemed by the REALTOR® to be needed to assist with or complete, in a manner consistent with Article 10, a real estate transaction or professional assignment and (b) is obtained or derived from a recognized, reliable, independent, and impartial source. The source of such information and any additions, deletions, modifications, interpretations, or other changes shall be disclosed in reasonable detail. (Adopted 1/05, Renumbered 1/06)

• Standard of Practice 10-3
REALTORS® shall not print, display or circulate any statement or advertisement with respect to selling or renting of a property that indicates any preference, limitations or discrimination based on race, color, religion, sex, handicap, familial status, national origin, sexual orientation, or gender identity. (Adopted 1/94, Renumbered 1/05 and 1/06, Amended 1/14)

• Standard of Practice 10-4
As used in Article 10 “real estate employment practices” relates to employees and independent contractors providing real estate-related services and the administrative and clerical staff directly supporting those individuals. (Adopted 1/00, Renumbered 1/05 and 1/06)

Posted by : Byron King