California Real Estate Broker Practice Exam

A deed restriction that prohibits the sale of property to certain ethnic groups is illegal and unenforceable because it violates the Fair Housing Act, which prohibits discrimination based on race, color, national origin, religion, sex, familial status, or disability. This federal law aims to ensure that all individuals have equal rights in housing transactions, including the right to buy or rent property regardless of their ethnicity.

Such restrictions are considered a form of discrimination and have been deemed contrary to public policy. As a result, even if a deed or contract includes these restrictive covenants, they cannot be enforced in a court of law. Courts will not uphold any agreements that discriminate against individuals based on their ethnicity, meaning that any attempts to enforce such a deed restriction would fail legally.

This principle reinforces the importance of fair access to housing and property ownership for all, highlighting societal values that oppose discrimination.