August 25, 2005

Housing Non-Discrimination And Property Rights

I own my house. What business, then, does the government (any government, from the federal level down to my city) in regulating who I may or may not sell my house to? That is not a rhetorical question, given the nature of this case in Virginia.

In the first case of its kind, the Alexandria Human Rights Commission unanimously agreed Monday night that Long & Foster Real Estate Co. discriminated against a single gay man who wanted to buy a home in a quiet, tree-lined neighborhood.

Instead, the house went to a young married couple, who continue to own it.
The commission cited the McLean-based real estate company for discriminating against Lawrence Cummings, 52, because of his marital status or his sexual orientation. The basis for its decision won't be made public for 30 days.
Long & Foster could be required to pay up to $5,000 in fines to the city of Alexandria.

Cummings has already paid thousands of dollars in attorney's fees since he learned that his offer on the house in the Beverly Forest area had been rejected in February 2004.

"It is for the cause. For the principle," he said. "I don't believe you can discriminate against someone for their martial status or sexual preference and be able to get away with it."

Actually, Mr. Cummings, you are exactly wrong in every moral sense. You have no right to buy a house if the owner is unwilling to sell it to you. And that is the case even if you are willing to meet the price set by the owner – because the right to determine who one does business with is a matter of fundamental human rights that pre-exists any statute.

LetÂ’s look at the particulars of the case.

In February 2004, Cummings and his partner had already made offers on six houses and were getting tired of looking. When he saw the ranch-style house on Pullman Lane on a Saturday, he thought he had found what he was looking for. "I thought, 'Oooooh, cute,' " he explained. He met the sellers briefly and made an offer for the asking price -- $555,000 -- that same day.
"I thought surely I was going to get this house," he said.

But two days later, his agent called and said the owner had chosen a young married couple who had made an offer of $45,000 less. "She said it was the fact that I'm single and they sensed that I'm gay," Cummings said. And so he filed his complaint.

At the hearing, Cummings's attorney played a tape of a voice-mail message from a Long & Foster agent to a Realtor for McEnearney Associates, who was representing Cummings, describing the seller as a "fuddy-duddy" and explaining who she wanted to own the house:

"She was just extremely concerned that a young family, who would love the house and care for it, just like they did, down to the last curtain, which had been made from a wedding dress from one of their children, [would] love the house as much as they did," Anise Snyder of Long & Foster left in the message to David Howell of McEnearney, according to the case file.

Brien Roche, attorney for Long & Foster, said that the young couple who bought the house had made an equal offer, put down more earnest money and were chosen because they had shown more enthusiasm, even writing a letter about how much they liked the house and the curtains. Cummings, an interior designer, loved the house, too, but not the curtains, he would say later. "Old, dirty drapes? I don't think so," he said.

"There were both business and emotional reasons as to why the seller chose the people," Roche said in the case file. "It had nothing to do with marital status, nothing to do with anything other than the facts I just mentioned."

But ultimately, who cares if it was marital status or sexual orientation – or even race? The ultimate right regarding the conveyance of the home to another individual belongs not to the buyer, but to the seller. The house was hers, and she had every right to decide that she wanted to see a traditional family in that house rather than a childless pair of homosexuals. She had every right to arrange her business affairs in such a way that the house went to such a family – even if the decision made no sense from a purely economic standpoint. The right to make such a decision is essential to any meaningful concept of economic liberty.

More to the point, no one can point to a natural right – as opposed to a government-decreed positive right – to acquire a particular piece of property. That government believes it has any sort of moral right to regulate or penalize the decision of an owner to sell to a preferred buyer is corrosive of the right to own and dispose of property – and with it, the capitalist system.

Now some may argue that I am supporting housing discrimination. They are right. But as long as that discrimination is engaged in by a private party, I don't see a compelling government interest in stopping it that in any way justifies the infringement of property rights stopping it would entail.

Posted by: Greg at 02:12 PM | Comments (86) | Add Comment
Post contains 894 words, total size 5 kb.

1 If that is the case, then black people would stay in ghetto area. And Deaf people having hard time to find a decent housing. Because of that issue you reinforce -- which is why I want to set up a business where I can legally discriminate your kind.

R-

Posted by: Me is the Ridor at Thu Aug 25 14:47:14 2005 (ODDFf)

2 Actually, you are precisely wrong.

When push comes to shove, most people find hate-based discrimination repulsive. I know I do -- i just do not believe it should be illegal.

Would I sell my house to a black or hispanic family? You bet. But would I prefer to sell to a family with children over a couple (or individual) without? You bet -- because i would like to see someone else fulfill the dreams that my wife and I had when we bought the place, before her illness manifested itself. That isn't based upon hatred, but rather upon a value that is easy to see but hard to explain.

As for renting or selling to the deaf, again i'd have no problem -- provied I was dealing with a person who acted decently.

What I find especially interesting is your closing line -- you seem to be so very opposed to discrimination -- but cannot wait to do it because of your hatred for those of us who can hear (or is it those of us who are Christian, or those of us who actually use our sex organs as intended? I'm not sure which it is). I guess it is a case of "rights for me but not for thee" -- with you wanting to do what you don't want others permitted to do.

Posted by: Rhymes With Right at Thu Aug 25 15:31:24 2005 (tfoe3)

3 What's more, hoping to >>set up a business

Posted by: mcconnell at Thu Aug 25 16:05:35 2005 (xZw2C)

4 something screwed up here...let's try that again.


What's more, hoping to SET UP A BUSINESS just to have a crack at discriminating people is a losing proposition if we're talking about setting up a legal business entity that does business with the public on a daily basis. There is a difference between a legal business entity versus an owner of a house who is simply selling his own private property to another person. It's a business transaction but the owner does not have a legal business entity (i.e. business license) just to sell the house. The difference is between a business entity and a private citizen who wants to sell his private property. The owner of the house has the right to discriminate on who to sell it to as long as the monetary transaction is done legally. Everything is dandy.

Simple as that. Well, for some people.

I agree with RWR. The govt should not intrude on private owners telling them on who they can or cannot sell their private properties to as long as the monetary transaction is done legally.

Posted by: mcconnell at Thu Aug 25 16:16:30 2005 (xZw2C)

5 The article is confusing. Did the couple offer the same amount or $45,000 less?

It is also unclear what Long & Foster Real Estate is being blamed for. Did they urge the seller to discriminate? Or did they describe the seller as gay? What did they do but relay information?

In general oral promises mean nothing in home sales. Only the closing process when the contracts are signed and witnessed means anything. The exception is when both buyer and seller are professionals accustomed to making real estate transactions.

I really don't see a case against Long & Foster from the information given. It seems the seller took the triggering action.

Posted by: K at Thu Aug 25 16:38:24 2005 (Jkc4/)

6 You argue that discriminating on race is okay, because the alternative would be corrosive to capitalism. The way I see it, you're saying that your commitment to unfettered capitalism ranks higher than your commitment to equality.

I lived through white flight in the neighborhood where I grew up. If it were still legal to discriminate in selling real estate based on race, there would be no minorities living in Normandy, Missouri today. If you love capitalism more than you love humanity, I suppose that's fine. I'm glad we have laws forbidding racism, though.

Posted by: Dan at Thu Aug 25 17:29:32 2005 (aSKj6)

7 Dan -- you would be wrong in making that interpretation. I am a supporter of equality every bit as much as I am a supporter of capitalism. I simply draw a distinction between private acts of discrimination (such as we see here) and government acts of discrimination..

Government, in my view, can almost never discriminate -- and tht would include affirmative action, before you ask. That would also include, as per Shelley v. Kramer, a prohibition on government enforcing racially discriminatory covenants in real estate.

Now I can accept limitations on discrimination in public accommodations and the sale and rental of residential real estate by those offering more than a token number of units (say six or more, to pick an arbitrary number) a year. At a certain point, their actions do have a significant enough impact on interstate commerce point, the argument that their actions have a significan impact on interstate commerce does subject them to federal oversight. However, the individual action of a single home seller does not.

SO what would you have? Individual property owners would be free to sell their homes without government interfeance, but builders would not. Bob who pwns a single building with four units (one of which he might live in) would be free to disciminate, but corporate entities owning/managing dozens or hundreds of rental units could not.

Posted by: Rhymes With Right at Thu Aug 25 23:12:44 2005 (H0pF9)

8 Oh, and by the way, Dan -- I would argue that what you call "equality" is not that at all, unless you want to argue that everybody being equally unfree is a good thing.

After all, how are you deprived of equality if I decide not to engage in a real estate transaction with you? And how are your equality levels impacted differently by my decision to sell to someone else because I like their offer better as opposed to doing so because I like them better, regardless of my reason.

Posted by: RHymes With Right at Thu Aug 25 23:41:55 2005 (H0pF9)

9 RWR - The impact of individual decisions not to sell to minorities would be total segregation in most neighborhoods. Even where they were simply following the dictates of the law, individuals who sold to blacks in the neighborhood where I grew up faced retribution - usually simply condemnation, but, in a few instances, more direct threats.

I agree with you that "equality" is a pretty loose word for what I'm trying to convey. Perhaps I should have said that the value I would add to your love of pure capitalism is "equality of economic opportunity".

Posted by: Dan at Fri Aug 26 00:36:02 2005 (aSKj6)

10 What RWR said.

Posted by: mcconnell at Fri Aug 26 01:58:34 2005 (on93k)

11 Sorry, but you guys who think this is right are off kilter.

It is immaterial why a person may dislike a potential buyer of their house. It's their house. If they want to sell it for five bucks to one person and five million bucks to another, with the only difference being red hair versus brown hair, then they should be able to do it. It's theirs.

The arguments of segregated neighborhoods rings hollow to me. Even if that were the case, it is not a matter of legislative priority. What *is* a matter of legislative priority is governmental discrimination (AKA affirmative action).

I support equality, but equality can only be legislated against the government, and not against private individuals.

I think the people that disagree with this have no real concept of private property or property rights.

Bartleby

P.S. This is highly rambling, but I'm short on sleep and am otherwise unwell.

Posted by: Bartleby at Fri Aug 26 03:34:57 2005 (lkCzp)

12 Right. Bartleby, I agree. If Ridor owned a house (big if) and wanted to sell it, and there are two buyers, one gay couple versus a religious conservative family, he has every right to sell his house to a gay couple. I've no complaints. He's the owner of the house. Why is that a hard concept to understand when it comes to a private citizen on wanting to sell a house to whomever he wants? I suppose he'll be happy if the govt tells him, "No, you must sell your house to a religous family."

It's called capitalism and real estate ownership's rights to do what they want with their property.

Posted by: mcconnell at Fri Aug 26 05:44:19 2005 (CQ3Yp)

13 Well, Bartleby & McConnell, you're wrong, as demonstrated by the article cited by RWR. You are free to discriminate as much as you want, as long as you don't discriminate against a protected class. It's a lot like employment law in an at-will state. You're free to fire someone for any reason or no reason, but not for a discriminatory reason. Your logic of the free market applies here, as well, but, fortunately, our society does not hold unrestricted capitalism as an absolute value. You guys lost this argument a long time ago. And our society is better for it.

Posted by: Dan at Fri Aug 26 08:05:35 2005 (HBqfk)

14 Sorry Dan. No can do. You're getting things a bit twisted and confused here.

A private property owner of a house who want to sell his house can do so on his terms. It's not about employment laws here, it's about a private citizen (without the help of a real estate agent which is in question and clear in this article) deciding on who to sell his house to whether it is for monetary, racial, religious, or ethnic purposes.

The property owner who want to sell his house to somebody else is an action that does not fall under any employment laws. His house is not a business entity where a business license is required in order to do business with the public. You sell the house that you once owned. You pay the taxes on the gain. And you move on. Just as RWR said: "How are you deprived of equality if I decide not to engage in a real estate transaction with you?"

The property owner of the house is not in the business of service where discrimination is disallowed. The property owner is in the business of selling his own private possession (ie. his house) to somebody else that he deems as qualified. And what would those qualifications be? Only the owner knows that.








Posted by: mcconnell at Fri Aug 26 10:19:57 2005 (CQ3Yp)

15 Correction:

It's not about employment laws here, it's about a private citizen (without the help of a real estate agent which is in question and NOT clear in the article link by RWR) deciding on who to sell his house to whether it is for monetary, racial, religious, or ethnic purposes.

Posted by: mcconnell at Fri Aug 26 10:22:12 2005 (CQ3Yp)

16
The charges against the Long & Foster concerned me more than what the seller did. So I did a news search. It didn't help much. There was one article in a gay advocacy paper that seemed fair and had some facts.

The $45,000 extra was not offered but the gay man had said he would increase his offer by that much if needed.

The odd thing about the article is that again there is no indication of what L&F did wrong. As nearly as I can see they are being penalized for not bullying their own client into an action he did not want to take. What gives here?

I hope someone can come in with more facts.


Posted by: K at Fri Aug 26 11:35:06 2005 (Jkc4/)

17 I'm sorry, McConnell - I was probably a little unclear in extending your logic to the employment sphere. But my point still stands. Under your logic, if I own a local market and I want to refuse to hire minorities, you would allow that. (Surely you're not going to claim that whether I am required to have a business license is the distinguishing factor, are you? Because where in your cherished pure capitalism is that appropriate, anyhow?)

Selling real estate is not a purely private transaction. You need to record your deed. Your sale affects other properties.

Sorry, but in our society, you can't discriminate against protected classes in real estate sales or in employment. I think that's a good thing.

Posted by: Dan at Fri Aug 26 12:25:58 2005 (aSKj6)

18 Actually, Dan, I sincerely doubt that allowing property owners to exercise their fundamental right to sell their property free of government intervention would result in such segregation. I think it would much mor likely result in faster and more complete integration. But even if it did not, is segregation a bad thing in and of itself if it occurs through private action and not government mandate? I always point to the cafeteria in my dorm during college -- black students on this campus of a large northern state university by and large chose to self-segregate. Is there something wrong with that if it is due to private action and not government force?

And if integration is your focus, shouldn't the government be mandating certain racial balances in neighborhoods, like was done with school populations in the 1970s?

Oh, and given your protected class argument, don't we get into an equal protection issue?

Posted by: Rhymes With Right at Fri Aug 26 13:06:58 2005 (R6+yj)

19 Bottom line, a private home owner has the right on who to sell the house to, regardless whether or not the sale may affect other properties. If the transaction is successful, a new owner moves in. Govt intrusion on forcing private home owners on who to sell their houses to is not a good idea. This has nothing to do with the EEOC or employment laws where there are discrimination policies. This is about private transactions, again, where deeds are bought and sold, and recorded. It is a private transaction because there is no government intrusion against the owner telling him on who to sell their house to. There are financial laws to be followed and adhered to but nothing about overt govt intrusion, which you are advocating, Dan.


Spew what you may Dan.


K - I, too had that feeling. The story needs more information on exactly what happened. Some loose ends need to be followed up.

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