“Are certain types of accounts protected from discrimination based on source of funds?”
April 13, 2023
Q: In regards to discriminating by source of funds, are savings accounts, or investment accounts that regularly pay out dividends, protected from discrimination based on source of funds? Does it matter whether the accounts are international?
A: Fair housing law prohibits discriminating against a prospective renter or buyer based on the source of their income, or source of funds. The Virginia Code defines “source of funds” as any source that lawfully provides funds to or on behalf of a renter or buyer of housing. So, a savings account does not apply as it is not an ongoing source of income. However, an investment account that regularly pays out dividends does constitute a source of income, and therefore would have protection from discrimination as a source of funds. The Code does not distinguish between domestic and international accounts; it only requires that the source of funds be lawful.
What is the Legal Hotline?
The Legal Hotline is a member benefit that has been supporting members for over 25 years. Our team of lawyers answers your important questions about real estate transactions quickly and accurately (usually within three business hours!).
Bonus! Here are some tips to help make the Legal Hotline work for you!
Information accurate as of 04/13/23
You might also like…
Ensure Your “Touring”—or Buyer—Agreements are Legal
By Laura M. Murray - May 2, 2024
A well-known property portal has recently announced it will have a “touring agreement” to be used with buyers who have been acquired through their lead-generation service. The “touring… Read More
“I have a limited service listing, what are my duties to my client?”
By Jon Haley - May 2, 2024
*Please note: Any questions regarding Legal Hotline Spotlights should be submitted via the Virginia REALTORS® Legal Hotline. Our attorneys are unable to respond to questions through our comments section. Q:… Read More
Home Inspection Reports and Copyrights
By Santiago Montalvo - May 2, 2024
What you need to know: In short, when you commission a work for hire, you need to be mindful of who keeps the copyrights for it. The copyrights… Read More