Real Estate Law Overview

A real estate broker can only share commissions with another brokerage or a salesperson affiliated with their own brokerage.

A real estate broker, not the salesperson, owns the listing, even if the salesperson created it.

Federal law that prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, or disability.

State laws that expand upon the Fair Housing Act, often adding extra protected classes, like sexual orientation and marital status.

A federal law that requires businesses to provide reasonable accommodations to individuals with disabilities.

An illegal practice where competing real estate agencies agree to fix prices for services.

A practice where businesses agree to boycott or exclude another business from a market.

Combining the sale of one product or service with the purchase of another unrelated item.

A person who helps homeowners avoid or slow down foreclosure by offering services for compensation.

A written contract between a foreclosure consultant and a homeowner that clearly states the services offered and their cost.

The practice of trying to persuade homeowners in a neighborhood to sell their homes by suggesting that the area is declining due to ethnic or racial changes.

Directing buyers or renters to or away from specific areas based on their race, religion, or other protected characteristics.

Refusing loan applications based on the neighborhood's characteristics, such as the racial composition of residents.

Prohibits discrimination by businesses, including real estate brokers, apartments, and condominiums, based on various protected characteristics.

Prohibits discrimination in all housing-related transactions, including selling, renting, advertising, and financing, based on several protected grounds.

Requires loan decisions to be based on the borrower's merits and the property's security, not on location.

Agents must comply with anti-discrimination provisions in the state's Real Estate Law to avoid disciplinary action.

A major federal law that prohibits activities that restrict competition in commerce.

Real estate agents should not discuss the commission rates with competitors, except to allocate shared commissions for joint transactions.

Antitrust laws aim to prevent harmful practices that can reduce competition in the marketplace.

An agreement between competitors to divide up customers or sales territories. Individual brokers can allocate customers or territories within their own brokerage.

A federal law requiring an environmental impact statement (EIS) for any action that may significantly impact the environment. This applies to private uses if a federal entity or federal loans are involved.

The state version of NEPA. This law applies to public and private projects and requires an environmental impact report (EIR) unless the project's impact is insignificant.

Federal and state laws designed to conserve habitats for threatened species listed on the Endangered Species Act.

A hazardous material found in older buildings. It becomes a hazard when it is old or damaged. Owners should hire a professional for handling asbestos.

A gas that forms when uranium decomposes. Radon gas can accumulate in buildings and pose health risks.

A type of paint that was banned for consumer use in 1978 due to health risks. Owners must disclose the presence of lead-based paint.

Underground storage tanks that pose environmental risks due to potential leaks. Both federal and state laws regulate the removal and cleanup of these tanks.

A common problem, especially in damp or wet areas. Mold poses health risks for people with allergies and respiratory conditions.

A type of geologic hazard where the weight of a structure on unstable soil causes ground movement downhill. This can occur, especially after heavy rain.

A geologic hazard caused by the collapse of ground into underground cavities. This can occur naturally or due to human activity.

A geologic hazard that is the least predictable and controllable. Earthquakes can cause significant damage and destruction.

A real estate agent cannot refuse to represent a seller based on their race or the racial makeup of the neighborhood. It is illegal to discriminate based on race.

A broker cannot refuse a listing just because the seller's asking price is too high. However, they can refuse a listing if the asking price is substantially above the fair market value.

Requiring a larger security deposit from a single man is illegal discrimination under the Fair Housing Act.

The Americans with Disabilities Act (ADA) primarily focuses on ensuring accessible public facilities for people with disabilities. However, discrimination against a disabled person seeking housing is prohibited by the Fair Housing Act.

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) created the Superfund to address the cleanup of toxic sites. Both past and present property owners can be held liable for hazardous waste cleanup.

It is illegal to fix prices for real estate services, even if it seems like a simple agreement between brokers. This can harm consumers by limiting competition and driving up costs.

A broker cannot require a seller to use their company for future listings (list back) as a condition of the sale. This is a tie-in arrangement and violates antitrust laws.

The Unruh Civil Rights Act prohibits discrimination by businesses, including real estate brokers, apartments, and condominiums, based on various protected characteristics.

The Fair Employment and Housing Act (Rumford Act) in California expands upon the Fair Housing Act, including protections against housing discrimination based on sexual orientation and marital status.

Advertising a property only with white models can be grounds for a discrimination suit, even if unintentional, because it implies the property is not available to everyone.

Asbestos is a naturally occurring mineral that was widely used in building materials because of its fire-resistant and insulating properties. However, when it disintegrates and releases fibers into the air, inhaling these fibers can cause serious health problems, including lung cancer.

Urea formaldehyde is a chemical commonly found in adhesives used for pressed wood products, such as plywood and particleboard. Exposure to urea formaldehyde can cause respiratory problems, skin irritation, and potentially cancer.

Radon is a colorless, odorless, and tasteless radioactive gas that occurs naturally from the decay of uranium in the ground. It can seep into homes through cracks in foundations and floors, increasing the risk of lung cancer.

Lead-based paint was commonly used in homes before 1978. While it's not harmful if intact, lead paint chips can be ingested, especially by young children, leading to severe neurological and brain damage.

Mold is a type of fungi that can grow in damp, unexposed areas of homes. While some molds are harmless, others can cause respiratory problems, allergies, and other health issues in sensitive individuals.

The National Environmental Policy Act (NEPA) requires federal agencies to conduct environmental impact assessments before taking any action that could significantly impact the environment. This includes things like building roads, damming rivers, or developing new energy sources.

The California Environmental Quality Act (CEQA) is similar to NEPA, but applies specifically to California. It requires state agencies to prepare environmental impact reports (EIRs) before taking any action that could significantly impact the environment within California.

The California Coastal Act aims to preserve and protect California's coastlines from overdevelopment. It establishes guidelines for development along coastal areas, ensuring that new construction doesn't harm the environment.

The Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) is designed to clean up hazardous waste sites and hold responsible parties accountable. It created a Superfund to finance the cleanup of contaminated sites.

The Clean Water Act regulates water pollution, including the discharge of pollutants into rivers, lakes, and oceans. It also protects wetlands by requiring landowners to obtain permits before filling or draining them.

The Fair Housing Act is a federal law that prohibits discrimination in housing based on race, color, religion, national origin, sex, familial status, or disability. It ensures equal access to housing opportunities for everyone.

The Unruh Civil Rights Act expands upon the Fair Housing Act, prohibiting discrimination in business establishments based on race, color, religion, national origin, ancestry, sex, sexual orientation, gender identity, disability, medical condition, or marital status. This ensures everyone is treated equally in commercial settings.

The Americans with Disabilities Act (ADA) requires businesses to provide reasonable accommodations to individuals with disabilities, ensuring they have equal access to services, employment, and public spaces. It covers various aspects like accessibility for people with mobility impairments, visual impairments, or hearing impairments.

An agreement where a seller hires a broker exclusively to find a buyer but can also sell the property themselves without paying commission.

An agreement where a seller hires a broker exclusively to find a buyer and pays commission even if they sell the property themselves.

A clause in a listing agreement that protects the broker from being held liable for inaccurate information provided by the seller.

A clause in a listing agreement that allows the broker to earn commission if a sale occurs within a set time after the listing expires, even if the broker wasn't directly involved with the sale.

A type of listing where the broker's commission is a percentage of any sale price above a set minimum price determined by the seller.

Prohibiting fair housing practices based on race, color, religion, national origin, sex, familial status, or disability.

A law that prohibits development in wetlands without proper government permits.

A law that prohibits development without a permit from the appropriate local government agency in California's coastal zone.

A chemical that can be harmful to humans and is often found in older homes.

A law that assigns cleanup costs associated with properties contaminated with hazardous waste.