If you are preparing for your Michigan real estate license, understanding fair housing laws is absolutely non-negotiable. Not only is it a moral and legal imperative for practicing real estate agents, but it is also one of the most heavily tested subjects on the state licensing exam. To ensure you are fully prepared, this article serves as a deep dive into protected classes and discrimination, supplementing our Complete Michigan Exam Guide.

In Michigan, real estate professionals must adhere to both federal guidelines and strict state-specific laws. Navigating the intersection of the Federal Fair Housing Act and Michigan's Elliott-Larsen Civil Rights Act (ELCRA) is a crucial skill for passing the exam and maintaining your future license.

Federal vs. Michigan Fair Housing Laws

Real estate discrimination laws operate on multiple governmental levels. A general rule of thumb for the exam is that while local and state laws can be more restrictive (offering more protections) than federal law, they can never be less restrictive.

The Federal Fair Housing Act (FHA)

The Federal Fair Housing Act of 1968, along with its amendments (most notably in 1974 and 1988), prohibits discrimination in the sale, rental, and financing of dwellings based on seven federally protected classes. An easy acronym to remember these is FReSH CoRN:

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

Michigan's Elliott-Larsen Civil Rights Act (ELCRA)

For the Michigan state portion of your exam, you must know the Elliott-Larsen Civil Rights Act (Public Act 453 of 1976). ELCRA expands upon federal laws to include several additional protected classes unique to Michigan.

Under ELCRA, it is illegal to discriminate in real estate transactions based on:

  • Age
  • Marital Status
  • Height
  • Weight

Note for 2026 Examinees: Following recent legislative updates (Public Act 6 of 2023), sexual orientation and gender identity or expression are also explicitly codified as protected classes under ELCRA. You must be prepared to identify these Michigan-specific protections on your exam.

Michigan Persons with Disabilities Civil Rights Act

While the federal ADA and FHA cover disabilities, Michigan has its own specific legislation: The Persons with Disabilities Civil Rights Act (Public Act 220 of 1976). This act guarantees equal opportunity in housing for individuals with physical or mental disabilities that substantially limit one or more major life activities, provided the disability is unrelated to the individual's ability to acquire, rent, or maintain property.

Understanding the Reality of Fair Housing Complaints

To give you an idea of how these laws apply in the real world (and why the Michigan Department of Civil Rights takes them so seriously), let's look at the breakdown of fair housing complaints in the state. Disability-related complaints consistently make up the vast majority of infractions.

Fair Housing Complaints in Michigan by Protected Class (%)

Prohibited Discriminatory Practices

The Michigan exam will test your ability to identify illegal practices using specific terminology. You must be able to differentiate between the following three major violations:

1. Steering

Steering occurs when a real estate agent guides prospective buyers toward or away from certain neighborhoods based on their protected class.
Example: A licensee assumes a Korean buyer would prefer to live in a neighborhood with a high Asian population and only shows them homes in that specific zip code. Even if the agent thinks they are being "helpful," this is illegal steering.

2. Blockbusting (Panic Peddling)

Blockbusting is the illegal practice of inducing homeowners to sell their properties by making representations regarding the entry or prospective entry of persons of a particular protected class into the neighborhood.
Example: An agent distributes flyers in a neighborhood stating, "The neighborhood is changing due to an influx of young, unmarried renters. Sell now before your property values drop!" This violates ELCRA's protections on age and marital status.

3. Redlining

Redlining is typically committed by lenders or insurance companies. It involves refusing to issue loans or insurance policies in specific geographic areas, regardless of the applicant's financial qualifications.
Exam Tip: Lenders must evaluate borrowers based on objective financial data. While a lender will heavily scrutinize Michigan loan-to-value and down payment calculations, they cannot deny a well-qualified buyer simply because the property is located in a predominantly minority neighborhood.

Practical Scenarios for the Michigan Exam

The state licensing exam frequently uses situational questions to test your applied knowledge. Here are two scenarios modeled after actual exam questions:

Scenario A: The Overweight Tenant
A landlord refuses to rent a second-floor apartment to an applicant because the applicant weighs over 350 pounds. The landlord claims he is worried the tenant will damage the older hardwood floors.
Verdict: This is illegal in Michigan. Weight is a protected class under the Elliott-Larsen Civil Rights Act.

Scenario B: The College Students
A property manager refuses to lease a home to a legally married couple because they are 19-year-old college students, stating "I don't rent to teenagers."
Verdict: This is a direct violation of ELCRA. The property manager is discriminating based on Age. (Note: Age protections in Michigan housing apply to anyone old enough to legally enter into a contract, which is 18).

Penalties and Enforcement

In Michigan, fair housing complaints are investigated by the Michigan Department of Civil Rights (MDCR). If an individual believes they have been discriminated against, they have up to 180 days to file a complaint with the MDCR, or up to 1 year to file with HUD at the federal level.

For real estate licensees, the stakes are incredibly high. A violation of fair housing laws can result in:

  • Immediate suspension or revocation of your real estate license by the Department of Licensing and Regulatory Affairs (LARA).
  • Civil fines running into the tens of thousands of dollars.
  • Actual and punitive damages awarded to the victim.

Because the Department of Licensing and Regulatory Affairs (LARA) takes these violations so seriously, the topic is heavily weighted on the exam. Mastering this section is a proven way to improve your score and beat the historically challenging Michigan pass rate statistics and difficulty.

Frequently Asked Questions (FAQs)

What are the Michigan-specific protected classes not covered by Federal law?

Under the Elliott-Larsen Civil Rights Act, Michigan protects individuals from housing discrimination based on age, marital status, height, and weight. Recently, sexual orientation and gender identity were also explicitly codified into state law.

Are there any exemptions to fair housing laws in Michigan?

Yes, but they are incredibly narrow. For example, a religious organization may restrict housing to members of its own religion, provided membership in the religion is not restricted by race, color, or national origin. Furthermore, an owner-occupant of a 1-to-2 family dwelling may be exempt from certain rental restrictions, but a real estate licensee can never participate in discriminatory practices, even if the owner is exempt.

Can a landlord charge a pet fee for a service animal in Michigan?

No. Under both the Federal Fair Housing Act and the Michigan Persons with Disabilities Civil Rights Act, service animals and emotional support animals are not considered "pets." Therefore, landlords cannot charge pet deposits, pet rent, or cleaning fees for these animals, nor can they apply breed or weight restrictions.

What is the difference between steering and blockbusting?

Steering targets buyers or renters by guiding them toward or away from specific areas based on a protected class. Blockbusting targets sellers by inducing panic selling based on the entry of a protected class into their neighborhood.

Who enforces the Elliott-Larsen Civil Rights Act?

The Michigan Department of Civil Rights (MDCR) is the primary agency responsible for investigating complaints and enforcing the Elliott-Larsen Civil Rights Act. If a real estate agent is involved, the Michigan Board of Real Estate Brokers and Salespersons (under LARA) will also take disciplinary action regarding the agent's license.