For candidates preparing for the Massachusetts real estate salesperson or broker exam, few topics are as heavily tested—and legally critical—as fair housing laws. Understanding protected classes and discrimination is not just about passing a multiple-choice test; it is the ethical and legal bedrock of your future real estate career.

Massachusetts has some of the strictest fair housing regulations in the country. While federal laws provide a baseline of protection, the Commonwealth expands upon these significantly. To ensure you are fully prepared, this guide will break down the exact statutes, protected classes, and discriminatory practices you must know. For a broader overview of exam topics, be sure to bookmark our Complete Massachusetts Exam Guide.

The Foundation: Federal vs. Massachusetts Protected Classes

To succeed on the exam, you must be able to distinguish between federal protected classes and those specific to Massachusetts. Questions frequently attempt to trick candidates by mixing the two.

Federal Fair Housing Act (FHA) Baseline

The federal Fair Housing Act of 1968 (and its subsequent amendments) prohibits discrimination in housing based on seven core classes:

  • Race (Protected since the Civil Rights Act of 1866)
  • Color
  • Religion
  • National Origin
  • Sex
  • Familial Status (Added in 1988; protects families with children under 18 and pregnant women)
  • Disability (Added in 1988; covers physical and mental disabilities)

Massachusetts General Laws Chapter 151B (M.G.L. c. 151B)

Massachusetts expands fair housing protections far beyond the federal level. Under M.G.L. c. 151B, the Commonwealth adds several specific protected classes. If you see any of the following on your exam, know that they are strictly protected in Massachusetts:

  • Age (Specifically protecting individuals 40 and older)
  • Sexual Orientation
  • Gender Identity and Expression
  • Marital Status
  • Veteran or Active Military Status
  • Source of Income (Crucial exam topic: This includes Section 8 housing vouchers, alimony, and child support)
  • Genetic Information
  • Ancestry

Enforcement: The Massachusetts Commission Against Discrimination (MCAD)

In Massachusetts, fair housing laws are enforced by the Massachusetts Commission Against Discrimination (MCAD). Anyone who believes they have been discriminated against can file a complaint with MCAD within 300 days of the alleged discriminatory act.

To give you an idea of what regulators are actively monitoring, here is a breakdown of the most common housing discrimination complaints filed in Massachusetts based on recent historical data:

Estimated MCAD Housing Complaints by Basis (%)

Prohibited Discriminatory Practices to Know

The exam will test your knowledge of specific illegal practices. You must know the definitions and be able to identify them in situational scenarios.

1. Steering

Steering occurs when a real estate agent guides prospective buyers or renters toward or away from certain neighborhoods based on their protected class.
Example: An agent assumes a Hispanic buyer would only want to look at homes in a predominantly Hispanic neighborhood and refuses to show them listings in other areas. This is illegal.

2. Blockbusting (Panic Peddling)

Blockbusting is the illegal practice of inducing panic selling in a neighborhood for financial gain by representing that members of a protected class are moving into the area.
Example: An agent distributes flyers in a neighborhood stating, "The demographics of your neighborhood are changing quickly! Sell now before your property values drop!"

3. Redlining

Redlining is typically committed by lenders or insurance companies. It involves refusing to issue mortgages or insurance policies in specific geographic areas based on the demographics of that area, rather than the applicant's creditworthiness.

Massachusetts-Specific Fair Housing Nuances

The Massachusetts exam loves to test candidates on local nuances that differ from general national practices. Pay special attention to these three areas.

Source of Income and Section 8

In Massachusetts, it is strictly illegal for a landlord or property manager to refuse to rent to a tenant simply because they use a Section 8 housing voucher or receive public assistance. Advertisements stating "No Section 8" are blatant violations of M.G.L. c. 151B and will result in severe penalties.

Lead Paint and Familial Status

Massachusetts has stringent lead paint laws. If a property was built before 1978 and a family with a child under the age of six wishes to rent it, the landlord must de-lead the property.
Exam Trap: A landlord cannot refuse to rent to a family with young children simply to avoid the cost of de-leading. Doing so constitutes familial status discrimination. (Read more about proper disclosures in our guide on Massachusetts Contract Essentials and Elements).

Exemptions (And When They Do Not Apply)

Under M.G.L. c. 151B, there are very narrow exemptions to fair housing laws. For example, an owner-occupied two-family home (a duplex) is exempt from some state fair housing laws regarding the rental of the other unit.
However, there are two massive caveats you must know for the exam:

  1. There are never any exemptions for discrimination based on race, due to the federal Civil Rights Act of 1866.
  2. Real estate licensees can NEVER use these exemptions. If a landlord hires you to represent them, the exemption disappears. As a licensed professional, you must adhere to all fair housing laws at all times. Failing to understand this is one of the Common Mistakes Candidates Make on the exam.

Exam Application: Practical Scenarios

Let’s look at how this knowledge translates to exam questions.

Scenario: A landlord owns a three-family building, lives in one unit, and wants to rent out the other two. He tells his real estate agent, "I don't want any veterans living here, they make me nervous." How should the agent respond?

Analysis: Veteran status is a protected class in Massachusetts. Furthermore, because the landlord is using a real estate agent, any potential owner-occupied exemptions are nullified. The agent must refuse the listing if the landlord insists on this discriminatory instruction. If the agent complies, both the landlord and the agent are violating M.G.L. c. 151B.

Understanding these laws is just as critical as understanding the mechanics of property ownership, which you can review in our Massachusetts Deeds and Title Transfer guide.

Frequently Asked Questions (FAQs)

Who enforces fair housing laws in Massachusetts?

The Massachusetts Commission Against Discrimination (MCAD) is the primary state agency responsible for enforcing M.G.L. c. 151B and handling complaints regarding housing discrimination.

Can a Massachusetts landlord refuse a tenant because they use a Section 8 voucher?

No. "Source of Income" is a protected class in Massachusetts. Refusing a tenant solely because they rely on a Section 8 voucher, alimony, or other public assistance is illegal.

Are real estate agents exempt from fair housing laws if they are selling their own property?

No. Real estate licensees are held to a higher standard. Even when selling or renting their own personal property, licensed real estate agents in Massachusetts cannot claim owner-occupied exemptions and must fully comply with all fair housing laws.

What is the penalty for violating Massachusetts fair housing laws?

Penalties can be severe, including out-of-pocket damages to the victim, emotional distress damages, civil penalties (fines), mandatory anti-discrimination training, and the suspension or revocation of your real estate license by the Board of Registration of Real Estate Brokers and Salespersons.

How does the Massachusetts Lead Law intersect with Fair Housing?

It is illegal to refuse to rent a property built before 1978 to a family with a child under six to avoid de-leading the property. Doing so is considered discrimination based on "Familial Status." The landlord is legally required to abate the lead hazard.