California Real Estate Practice Exam

Which of the following is NOT an exemption under the federal fair housing laws?

1. Sale of an owner-occupied, single-family house based on race

2. Renting without the use of a broker

3. Religious organizations restricting occupancy to members

4. Private clubs restricting occupancy to members

The correct answer is: Sale of an owner-occupied, single-family house based on race

An exemption is a rule or law that makes an exception or frees someone from certain requirements. In the context of federal fair housing laws, exemptions are specific circumstances where certain discriminatory practices are allowed. Option A, "Sale of an owner-occupied, single-family house based on race" does not fit any of the exemptions under federal fair housing laws. In fact, this type of discriminatory practice is expressly prohibited as it goes against the core principle of fair housing which is to provide equal access to housing regardless of one's race. Options B, C, and D are exemptions under the federal fair housing laws. However, they may still be subject to certain limitations and restrictions. For example, religious organizations must provide housing only to their members, and private clubs must be restrictive enough to still be considered as private and exclusive. This means that the other options may have exceptions and limitations while option A does not have any exemption at all, making it the correct answer for this question.