42 U.S.C. § 3605
Discrimination in residential real estate-related transactions (THE PUBLIC HEALTH AND WELFARE (42 U.S.C.))
Operative Text
It shall be unlawful for any person or other entity whose business includes engaging in residential real estate-related transactions to discriminate against any person in making available such a transaction, or in the terms or conditions of such a transaction, because of race, color, religion, sex, handicap, familial status, or national origin. As used in this section, the term “residential real estate-related transaction” means any of the following: The making or purchasing of loans or providing other financial assistance— for purchasing, constructing, improving, repairing, or maintaining a dwelling; or secured by residential real estate. The selling, brokering, or appraising of residential real property. Nothing in this subchapter prohibits a person engaged in the business of furnishing appraisals of real property to take into consideration factors other than race, color, religion, national origin, sex, handicap, or familial status.
Under 42 U.S.C. § 3605, businesses involved in residential real estate-related transactions — including mortgage lending, loan purchasing, brokering, and property appraisal — are prohibited from treating people differently based on race, color, religion, sex, handicap, familial status, or national origin. This applies both to whether a transaction is made available at all and to the specific terms or conditions offered. Appraisers, however, are permitted to consider factors unrelated to those protected characteristics when valuing property.
Plain English — not legal advice.
Lenders, brokers, and appraisers operating under 42 U.S.C. § 3605 generally maintain policies and practices that ensure protected characteristics play no role in loan approvals, pricing, brokerage services, or appraisal outcomes. Compliant operators typically document their decision-making criteria to demonstrate that factors such as creditworthiness or market conditions — rather than race, religion, sex, or other covered characteristics — drive transaction terms. Training staff to recognize and avoid differential treatment in residential real estate-related transactions is a common component of fair lending and fair housing compliance programs.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
42 U.S.C. § 3605 gives individuals the right to be free from discrimination in mortgage lending, brokerage, and appraisal services based on protected characteristics such as race, national origin, sex, handicap, or familial status. If someone believes they were denied a loan, offered worse terms, or received a discriminatory appraisal on a prohibited basis, they may have the option to file a complaint with the U.S. Department of Housing and Urban Development (HUD), pursue a claim through the federal court system, or reach out to a local fair housing organization for information about available remedies. Tenant-rights and fair housing organizations can help individuals understand how this provision may apply to their circumstances.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 11, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
Effective Timeline
References Out
No outbound references recorded yet for this provision.
References In
No inbound references recorded yet for this provision.