On February 1, AAR published the new Fair Housing Advisory. Of course, with a new form, there are always questions. This author served on the AAR committee that developed the form and saw firsthand the reasons why this form should become a standard of care. Some facts…
Sadly, REALTORS across the US have taken liberties to promote racism and hatred, on their personal social media and on other media tools, even at live events.
In 2019, Newsday A Long Island NY newspaper published the results of a 3-year, exhaustive, hidden camera expose of Realtors on Long Island showing the bold and repugnant discrimination.
As a result, the State of New York developed a Fair Housing Advisory that is REQUIRED on every real estate interaction with a potential new client. The Governor’s office, with the NY legislature, has created very strict penalties of any agent that does not utilize the form with their clients.
Then, in 2020, the NAR Professional Standards Committee developed a new Standard of Practice in Article 10 of the REALTOR Code of Ethics, SOP 10-5, which clearly says that a REALTOR shall not use hate speech, intimidating speech, slurs and epithets when referring to a protected class under the Federal Fair Housing Laws and the REALTOR Code of Ethics.
But the discrimination has continued across the country. As a result, in some cases, many state governments have created similar forms, while in other states, the state association of REALTORS created the form.
The AAR Risk Management Committee (this author serves on the committee) decided to create a statewide advisory. A workgroup was formed, and we reviewed forms from other states and associations, along with the guidance from HUD. The result was this Advisory, which we feel should significantly reduce discrimination in real estate. Why?
Why and how would it reduce discrimination? If every licensee in the state was obligated to have a frank conversation with every prospect about their rights in real estate, what would be considered discrimination, and where they may file a complaint if they feel they were a victim of discrimination. It should make licensees more mindful of their obligations, and possibly stop them from discriminating.
Here are a few Q&A’s
Where do I obtain the form? It is on Transaction Desk, (or if outside of Phoenix, most likely in your on-line forms programs. Also, AAR has it on their website for all members
Is usage of the form required by AAR or the state? As of this moment, no, it is not. However, many brokers state-wide have indicated that they will require it from each of their licensees, and this author and AAR applaud any broker that takes that position.
To whom should the form be presented? Any person(s) who are potential clients, such as buyers, sellers, landlords and tenants. Any property manager should present the form to their owners.
Our position as REALTORS and licensees should be to provide the best opportunity for everyone to begin and complete a transaction without ever feeling that they were a victim of discrimination. And to inform them that if they were a victim, they have recourse and resources as to how and where they could file a complaint.