For aspiring real estate professionals in the Pine Tree State, thoroughly understanding fair housing laws is not just a moral and legal obligation—it is a critical component of passing the state licensing exam. The Maine Real Estate Commission requires all candidates to demonstrate a deep understanding of both federal regulations and state-specific statutes. To ensure you are fully prepared, this article is a vital supplement to your Complete Maine Exam Guide.

While the Federal Fair Housing Act provides a baseline of anti-discrimination protections, the Maine Human Rights Act (MHRA) expands on these provisions, adding several protected classes and enforcing stricter exemptions. Understanding the interplay between these two sets of laws is essential for your daily practice and for navigating the Maine pass rate statistics and difficulty associated with the state-specific portion of the exam.

Federal Fair Housing Act vs. Maine Human Rights Act

The Federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968, as amended) prohibits discrimination in the sale, rental, and financing of dwellings based on seven protected classes. However, Maine law goes further. Under Title 5, Chapter 337 of the Maine Revised Statutes, the Maine Human Rights Act (MHRA) adds additional layers of protection that every Maine real estate licensee must memorize.

The Protected Classes

To pass your exam, you must be able to distinguish between federal protected classes and Maine-specific protected classes.

Federal Protected Classes (FReSH CoRN):

  • Familial Status (added in 1988)
  • Race
  • e
  • Sex (added in 1974)
  • Handicap / Disability (added in 1988)
  • Color
  • o
  • Religion
  • National Origin

Additional Maine Protected Classes:

  • Sexual Orientation: Includes perceived sexual orientation.
  • Gender Identity or Expression: Added to ensure comprehensive protections for transgender and gender non-conforming individuals.
  • Ancestry: Distinct from national origin, protecting individuals based on their lineage or descent.
  • Source of Income: A landlord or seller cannot discriminate against someone because they use federal, state, or local public assistance (such as Section 8 housing vouchers) to pay for their housing.
  • Order of Protection Status: Protects victims of domestic violence who have obtained a protective order.

Maine Fair Housing Complaints by Protected Class (%)

Note: Disability and Source of Income consistently rank as the top reasons for fair housing complaints filed with the Maine Human Rights Commission.

Prohibited Practices in Real Estate

The exam will test your ability to identify illegal practices in real-world scenarios. Whether you are dealing with buyer vs. seller representation, you must never engage in the following prohibited acts:

1. Steering

Steering is the illegal practice of guiding prospective home buyers or renters toward or away from certain neighborhoods based on their membership in a protected class.

Maine Exam Scenario: A buyer using a Section 8 voucher asks to see apartments in a high-income neighborhood. The licensee says, "You probably wouldn't feel comfortable there; let me show you some places in a more affordable area where other voucher holders live." This is illegal steering based on source of income.

2. Blockbusting (Panic Selling)

Blockbusting involves inducing owners to sell or rent their homes by predicting that members of a protected class are moving into the neighborhood, implying this will negatively impact property values.

Maine Exam Scenario: A licensee distributes flyers in a Portland neighborhood stating, "A new immigrant community is moving in. Sell now before your property values drop!" This is a textbook example of blockbusting.

3. Redlining

Redlining is typically committed by lenders or insurance companies. It is the refusal to make loans or issue insurance policies in specific geographic areas for discriminatory reasons, regardless of the applicant's financial qualifications.

4. Discriminatory Advertising

It is illegal to make, print, or publish any notice or advertisement that indicates any preference, limitation, or discrimination based on a protected class. Crucial Exam Rule: There are NO exemptions for discriminatory advertising. Even if a property is exempt from fair housing laws, the advertising for that property cannot be discriminatory.

Important Exemptions (And Maine's Stricter Rules)

Both federal and state laws contain limited exemptions, but the Maine exam frequently tests the differences between the two. Remember: An exemption never applies if a real estate licensee is involved in the transaction.

The "Mrs. Murphy" Exemption

This exemption applies to owner-occupied multi-family housing, but Maine's law is much stricter than the federal law:

  • Federal Law: Exempts owner-occupied buildings with up to four units.
  • Maine Law: Exempts owner-occupied buildings with only two units (a duplex). Furthermore, in Maine, an owner-occupied 4-unit building is exempt only from the prohibition against discrimination based on sexual orientation, but not the other classes.

If you are tested on a scenario where an owner occupies one unit of a three-unit building in Bangor and wants to discriminate based on religion, under federal law they might be exempt, but under Maine law, they are in violation.

Housing for Older Persons Act (HOPA)

Housing intended for older persons is exempt from "familial status" protections if it meets specific criteria:

  • 100% of units are occupied by individuals 62 or older; OR
  • At least 80% of the units are occupied by at least one person 55 or older, and the community publishes and adheres to policies demonstrating an intent to house older persons.

Enforcement and Penalties

In Maine, fair housing complaints are investigated by the Maine Human Rights Commission (MHRC). A complaint must be filed with the MHRC within 300 days of the alleged discriminatory act. Federally, complaints are handled by the Department of Housing and Urban Development (HUD) and must be filed within one year.

Penalties for fair housing violations are severe. They can include actual damages, punitive damages, civil penalties, and attorney's fees. Furthermore, the Maine Real Estate Commission can suspend or revoke your real estate license if you are found guilty of a fair housing violation. To ensure you fully grasp these legal concepts, consider reviewing the Maine best study materials and resources to find practice exams featuring state-specific legal scenarios.

Frequently Asked Questions

Does Maine have additional protected classes beyond the Federal Fair Housing Act?

Yes. In addition to the federal protections (race, color, religion, national origin, sex, familial status, and disability), the Maine Human Rights Act protects against discrimination based on sexual orientation, gender identity, ancestry, source of income, and order of protection status.

What is the "Mrs. Murphy" exemption in Maine?

While federal law exempts owner-occupied buildings with up to four units from certain fair housing rules, Maine law is stricter. Maine's general exemption only applies to owner-occupied two-family dwellings (duplexes). Furthermore, no exemptions apply if a real estate licensee is involved in the transaction.

Can a landlord in Maine refuse to rent to someone using a Section 8 voucher?

No. "Source of income" is a protected class under the Maine Human Rights Act. A landlord or property manager cannot refuse to rent to an applicant solely because they plan to use a federal, state, or local housing subsidy, such as a Section 8 voucher.

What is the difference between steering and blockbusting?

Steering targets buyers or renters by guiding them toward or away from specific neighborhoods based on their protected class. Blockbusting targets sellers by inducing panic selling based on the rumor that members of a protected class are moving into the neighborhood.

How are fair housing complaints handled in Maine?

Complaints at the state level are filed with the Maine Human Rights Commission (MHRC). The complaint must be filed within 300 days of the alleged discrimination. The MHRC will investigate and, if they find reasonable grounds, will attempt conciliation before the matter potentially goes to civil court.