In a rental scenario, a prospective tenant is denied for race in a 12-unit building where the owner lives on the premises. This would be:

• A. Unlawful, because this is a 12-unit building
• B. Unlawful, because the Mrs. Murphy exemption does not apply to a 12-unit building
• C. Lawful due to owner living on the premises
• D. Unlawful only if a real estate agent is involved

Answer: (B)

The key idea is how the Mrs. Murphy exemption works. The Fair Housing Act bans discrimination based on race in rental housing, but there’s a narrow exception for owner-occupied properties: the Mrs. Murphy exemption allows discrimination in a one- or two-family dwelling if the owner lives in one unit and no broker is involved. That exemption does not apply to larger multiunit buildings.

In a 12-unit building, even if the owner lives on the premises, the property isn’t eligible for the Mrs. Murphy exemption. So denying a prospective tenant because of race is unlawful under the Fair Housing Act. The on-site owner status doesn’t justify discrimination in a building that size, and the involvement (or not) of a real estate agent doesn’t change that.