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Love ‘em or hate ‘em, buyer love letters are still a thing, especially in competitive housing markets. While many people believe love letters give buyers an edge, they could put you at risk of inadvertently violating the Fair Housing Act.
The Fair Housing Act prohibits discrimination against seven protected classes: race, color, religion, sex, national origin, familial status, and disability. So how might a buyer love letter violate the Fair Housing Act? Here are three everyday examples:
Violation No. 1: Familial status
Writing something like, “This is the perfect place to raise our family,” or worse, a buyer including a photo of their family in a love letter, could result in potential discrimination that violates the Fair Housing Act. Sellers should evaluate offers based on terms, and are prohibited from choosing a buyer because they’re married, single, have children or are expecting a child.
If a seller decides to research potential buyers and make a decision that’s influenced by the buyer’s familial status, that’s on the seller and their agent. But as the buyer’s agent, you can make sure your clients don’t make the mistake of revealing any details about their familial status before closing.
Violation No. 2: Religion
For many buyers, proximity to houses of worship is a key consideration. A buyer might think it’s OK to share that they love the house because it’s close to their church, mosque or synagogue; however, divulging their religion might cause the seller to accept or decline their offer on the basis of that affiliation, which would constitute a violation of the Fair Housing Act.
Violation No. 3: National origin
A buyer might share how much they appreciate the local cuisine or cultural offerings in a certain area, but if they mention their own national origin along the way, it could lead to discrimination on the basis of national origin.
For example, let’s say a buyer writes a letter to the seller that highlights how much they want to be near Chinatown, since it reminds them of their hometown. They talk about how they’d like to enjoy the Chinese restaurants and speak their native language with neighbors and local business owners.
If the seller uses that information to determine which offer to choose — whether it benefits the buyer or not — they’d violate the Fair Housing Act in the process.
The fix: What to do instead
Fix No. 1: Avoid buyer love letters altogether
For some buyer agents, the easiest way to avoid liabilities from buyer love letters is to advise clients not to write them at all. Though they might offer some benefits, the risks could outweigh any potential reward, which has led many Realtor associations to discourage buyer love letters altogether.
The State of Oregon took an even stronger position against love letters in July 2021 when it passed a law banning them to prevent seller discrimination. (The law was later blocked by a federal judge, who deemed it unconstitutional.)
Fix No. 2: Educate buyers and encourage them to focus on objective facts
If your buyers are determined to write a love letter, you can help by educating them about fair housing laws and encouraging them to stick to objective facts about the home and the neighborhood.
If a buyer is excited about raising their children somewhere, they can talk about how much they love the spacious yard, local parks and highly rated school district (without ever mentioning kids).
Suppose a buyer with a physical disability is interested in a ranch house with accessible bathrooms. In that case, they don’t have to mention their disability and can instead share how much they like the home’s layout.
Jonathan Pressman is a Realtor who writes on a wide range of financial topics. Connect with him on LinkedIn and Instagram.
