Realty Law Digest

Allegation That Co-Op and Real Estate Agent Violated Federal, State and Local Fair Housing Laws by Selectively Enforcing Requirement That Purchasers Obtain Three References From Co-Op Shareholders—Court Denied Motion to Dismiss

The plaintiffs had filed a complaint, alleging that two cooperative corporations (“A” and “B”) and a defendant real estate agent (agent) had “violated federal, state, and local fair housing laws by selectively enforcing a requirement that purchasers obtain three references from existing Co-op shareholders.” The plaintiff is a non-profit organization that, inter alia, fights housing discrimination. The plaintiff sent white testers and African American testers to meet with the agent. The agent is a “white real estate broker with multiple listings in the Co-ops who has sold homes within the Co-ops for approximately 45 years.” “A” had moved to dismiss, alleging that the plaintiffs had failed to state a claim upon which relief may be granted. “B” had moved, inter alia, to dismiss for lack of standing. The court denied the defendants’ motions to dismiss.