Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

Under which circumstances can a dwelling be exempt from the federal Fair Housing Act?

1. Properties rented to government employees

2. Single-family residences sold by owners

3. Commercial properties

4. Vacant land rental

The correct answer is: Single-family residences sold by owners

A dwelling can be exempt from the federal Fair Housing Act under specific circumstances, and one such circumstance pertains to single-family residences sold by owners. This exemption is categorized under the act's provisions which allow for certain owner-occupied housing to be exempt from the requirements if the owner does not own more than three such homes at any one time and does not use discriminatory advertising or engage in discrimination during the sale process. This exemption is significant because it recognizes the rights of individual homeowners to sell their properties without the complexities of mandatory Fair Housing regulations, provided they meet specific criteria. The intent here is to balance the enforcement of fair housing practices with the rights of private property owners. In contrast, when properties are rented to government employees, are commercial properties, or involve vacant land rental, they do not generally fall under the homeowner exemption applicable to the sale of single-family residences. Government employees and commercial properties are often subject to different regulations, while rental of vacant land is typically not classified under the exemptions designed for owner-occupied residential sales.