In what scenario can a property transaction be considered exempt from the Fair Housing Act?

A property transaction can be considered exempt from the Fair Housing Act if the seller has not inhabited the dwelling. This exemption applies to certain transactions involving owner-occupied properties. The Fair Housing Act is designed to prevent discrimination in housing, but there are some specific exemptions for transactions that do not involve a direct relationship between the seller and the tenant or buyer in terms of occupancy.

When a seller has never resided in the property, they do not have the personal experience and connection that typically informs decisions on who they will sell to. Therefore, this situation can create a scenario where the provisions of the Fair Housing Act regarding discriminatory practices may not apply.

The other options do not align with the established exemptions under the Fair Housing Act. Selling a property for under market value, classifying the property as a luxury item, or having only one transaction every five years do not inherently exempt a transaction from the protections afforded by the Fair Housing Act. The law broadly applies to housing transactions to ensure equitable treatment regardless of pricing, frequency of transactions, or property type.