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Which of the following is NOT a condition for real estate transactions to be exempted under the Fair Housing Act?

  1. Real estate licensee not involved

  2. Seller must not be a recent resident

  3. Exclusively advertising to specific racial groups

  4. No discriminatory advertising

The correct answer is: Exclusively advertising to specific racial groups

The choice that is identified as NOT a condition for real estate transactions to be exempted under the Fair Housing Act is correct because the Act is designed to prevent discrimination in housing based on race, color, religion, sex, national origin, familial status, or disability. Exclusively advertising to specific racial groups would violate the principles of the Fair Housing Act, as it promotes discrimination and segregation, which the Act explicitly seeks to eliminate. In the context of the Fair Housing Act, certain exemptions exist for specific types of transactions, such as those involving owner-occupied buildings with four or fewer units or single-family housing sold or rented by an owner without using a broker. However, these exemptions do not allow practices that discriminate based on race or promote racial segregation, such as targeting advertisements to specific racial groups. Understanding this framework helps to clarify why the other conditions listed—such as the involvement of a real estate licensee or the status of the seller as a recent resident—are part of the broader discussion on exemptions but do not negate the fundamental requirement against discrimination that the Fair Housing Act enforces. Therefore, the assertion that exclusively advertising to specific racial groups is a condition for exemption is fundamentally incorrect, reinforcing the Act's emphasis on non-discrimination.