In real estate transactions, federal fair housing law applies without exemptions when what condition exists?

• A. Only for owner-occupied residential property.
• B. Only in rental transactions.
• C. Only for large commercial deals.
• D. It applies with no exemptions when a real estate license is involved.

Answer: (D)

When a real estate license is involved in the transaction, federal fair housing law applies with no exemptions. The Fair Housing Act prohibits discrimination in housing sales and rentals, and while there are some exemptions in certain limited situations (such as some owner-occupied or specific non-commercial arrangements), those exemptions do not apply to transactions handled by licensed real estate professionals. The presence of a license means the transaction is conducted under professional real estate services, and the law requires equal opportunity regardless of protected characteristics.