0:00
the Mrs Murphy exemption provides that
0:02
owner-occupied homes with four or fewer
0:05
rental units are exempt from certain
0:07
aspects of the fair housing act this
0:09
exemption allows Property Owners to
0:11
discriminate against certain groups when
0:13
looking for tenants and you must be
0:15
aware of this for your real estate exam
0:17
hello everybody it's Zach here from Real
0:18
Estate licensewizard.com and today we're
0:20
talking about the Mrs Murphy exemption
0:22
let's get started now before we explain
0:24
the Mrs Murphy exemption we must be
0:27
familiar with the fair housing act so
0:28
just a quick recap the Fair Housing Act
0:31
prohibits discrimination against
0:32
protected classes in real estate now
0:34
there are seven protected classes race
0:37
color religion sex familiar status and
0:41
disabilities now while the Fair Housing
0:44
Act protects these groups exceptions
0:46
exist such as the Mrs Murphy exemption
0:49
now what is the Mrs Murphy exemption
0:52
what is this specifically well the Mrs
0:54
Murphy exemption states that if an owner
0:57
occupied dwelling has four or fewer
0:58
rental units it is is exempt from the
1:01
fair housing act this means if a
1:03
property owner lives in a home with
1:05
three other rented rooms they can
1:07
technically discriminate against
1:09
protected classes certain protected
1:12
classes I should say but more on that
1:13
later so how did this come into play
1:15
well let us introduce you to Mrs Murphy
1:18
a hypothetical elderly woman and
1:20
property owner Senator Aiken created the
1:23
imaginary Mrs Murphy in 1964 to
1:26
exemplify why the Fair Housing Act
1:28
should have exemptions the hypothetical
1:30
Mrs Murphy set in her ways of bigotry
1:33
runs a small bed and breakfast to help
1:35
pay the bills she worries that her white
1:37
gas may not like sharing space with
1:40
racial minorities so she only chooses
1:43
tenants who are white the senator argued
1:45
that because Mrs Murphy lives in a
1:47
property with only four rental units she
1:50
should be able to choose whom she rents
1:53
out rooms to as a result of this
1:55
argument the Mrs Murphy exemption was
1:57
put into law under Title VII of the
1:59
civil Civil Rights Act of 1964. so that
2:02
was obviously back then how does it work
2:04
now now the Mrs Murphy exemption Works
2:06
differently now than it did in 1964. for
2:09
example Mrs Murphy's of the world can no
2:11
longer discriminate based on race
2:12
because the Civil Rights Act strictly
2:14
forbids it however property owners who
2:17
fall under the exemption could
2:19
technically still discriminate based on
2:21
sex religion familiar status and
2:23
disabilities if Mrs Murphy prefers
2:25
renting to female tenants or fellow
2:28
widows to support her limited income
2:30
this exemption gives her the right to
2:32
turn down other applicants if you think
2:34
this exemption sounds problematic you're
2:36
not alone many fair housing groups have
2:38
called for its repeal these
2:40
organizations argued that Mrs Murphy
2:42
exemption encourages housing
2:43
discrimination by denying equal
2:45
opportunities to protected classes now
2:48
it's important to note some states have
2:50
systems that limit or completely
2:52
override this discriminary loophole we
2:54
actually have a list of which states
2:56
recognize the Mrs Murphy exemption and
2:58
I'll leave a link down below of that now
3:01
it's important to note that this
3:02
exemption does not apply to advertising
3:04
for example Mrs Murphy cannot run a
3:07
rental advertisement stating that
3:09
certain religious groups should not
3:11
apply she also cannot tell prospective
3:13
renters why they are being denied she
3:16
must deny their tendency without
3:18
explaining her reasoning now this
3:20
exemption also does not apply in cases
3:22
where a real estate agent represents Mrs
3:25
Murphy Real Estate professionals must
3:28
comply with the federal fair housing act
3:30
so they cannot partake in discriminary
3:32
Behavior if Mrs Murphy decided to take
3:36
up real estate and become a real estate
3:38
agent then she can no longer
3:40
discriminate against tenants in her home
3:42
based on those specific exemptions now
3:46
there are other exemptions to the fair
3:48
housing act and don't worry we'll be
3:50
covering them on this channel so what do
3:52
you need to know for the real estate
3:53
exam well the Mrs Murphy exemption
3:55
states that if an owner occupied
3:57
dwelling has four or fewer rental units
3:59
it is exempt from certain aspects of the
4:01
fair housing act this means that if a
4:03
property owner lives in a home with
4:05
three other rented rooms they can
4:07
technically discriminate against certain
4:09
protected classes this legal loophole is
4:12
extremely controversial and is
4:14
considered to many a weak spot in the
4:16
fair housing act and yes guys this will
4:19
show up on the real estate exam so it's
4:21
super important to know for more on Fair
4:23
Housing click the video here and click
4:25
here to subscribe thank you guys so much
4:27
for watching until next time see ya bye
