Michigan License Law Practice Test

What is a violation of Fair Housing according to Michigan law?

1. Refusing a sale based on earnest money

2. Discrimination based on race

3. Negotiating commission rates

4. Discussing client details with others

The correct answer is: Discrimination based on race

Discrimination based on race is a clear violation of Fair Housing laws, as both federal and state laws explicitly prohibit such practices. The Fair Housing Act and similar Michigan legislation aim to ensure that all individuals have equal access to housing opportunities, regardless of their race, color, religion, sex, national origin, familial status, or disability. Violations of these laws can result in severe penalties, including fines and legal action, as they undermine the fundamental principle of equality in housing. In contrast, the other options presented do not constitute Fair Housing violations. For instance, refusing a sale based on earnest money does not relate to discriminatory practices but rather concerns financial matters. Negotiating commission rates is also a standard business practice and is unrelated to the principles of fair housing. Lastly, discussing client details with others, while it may violate privacy or confidentiality agreements, does not pertain to discrimination based on protected classes as outlined by Fair Housing laws.