Suppose you are representing buyers who would like for you to provide them with education data on the schools in few different neighborhoods. A question that often arises in such a situation is whether the buyer’s agent can provide such information without violating fair housing law or the code of ethics.   

The federal Department of Housing and Urban Development (“HUD”) recently issued a letter with guidance regarding what licensees can and cannot say to prospective buyers regarding school quality data. This guidance, sought to push back on claims that licensees violate the Fair Housing Act merely by discussing with prospective home buyers or renters the quality of schools in neighborhoods. ​ 

Giving raw data to clients that is otherwise publicly available is not a violation of fair housing law, or the Code of Ethics for that matter. However, it is very important to be mindful to not to engage in steering. The Code of Ethics specifically prohibits steering clients to/away from particular neighborhoods based on their membership in a protected class. If you do provide raw data, make sure you are not also offering your own opinions or encouraging them to see properties only in one neighborhood and not others.​ 

The HUD letter clarifies that in order for a statement to constitute steering, it has to be made with the intent to direct a client based on his race or prevailing racial characteristics of a neighborhood. In other words, providing information without discriminatory intent could not be deemed as steering. ​ 

NAR has long agreed that the disclosure of neighborhood data is allowed, except for information about racial, ethnic, or religious makeup. What is discouraged is substituting commentary for fact. Subjective, personal opinions regarding school quality can cross the line into discriminatory conduct. It’s always safer to provide clear, reliable, and objective facts and let your clients make their own judgments based on those facts. ​ 

And remember, as a licensee in Virginia, you are bound by Virginia Fair Housing law, too. 18VAC135-50-100 defines “unlawful steering practices” as, among other things, “Discouraging the purchase or rental of a dwelling because of [a protected class] by exaggerating drawbacks or failing to inform any person of desirable features of a dwelling or of a community, neighborhood, or development.” That’s a broad definition that could prove problematic if you try to editorialize about the schools in a certain neighborhood. It is best to stick to objective facts concerning neighborhoods. ​ 

In the end, it is always better and safer to be the source of the source and direct your clients to where they can find the information themselves. 

Have questions about this article? You can reach VAR’s Legal Team through our Legal Hotline.