While we love real estate at Flotilla, we understand there is an unfortunate history in our industry. Practices dating back to the 1920s, such as redlining (denying loans based on racially-defined neighborhoods) and blockbusting (profiting off of “white flight” while selling homes to black buyers at inflated, predatory interest rates) are facts of American real estate history that we’ve progressed past, yet other aspects remain despite corrections enforced by the Fair Housing Act of 1968.

Even today, our real estate professionals continue to discover discriminatory language in neighborhood deeds & instruments governing some Oklahoma neighborhoods & property—overlooked language that has existed for decades while the US has advanced forward on a path toward more open, tolerant, and fair values. Even Texas and other states around the nation, are dealing with the issue.

The language can be quite shocking—specifically dictating what races & ethnic backgrounds can and can’t purchase or even rent property—still existing today in the year 2023. The good news is that the Fair Housing Act dictates from a federal level that discriminatory language in real estate deeds & instruments, and can be completely disregarded in a real estate transaction. Any racial group targeted by the language is free to purchase any home.

CONSEQUENCES REMAIN

While the Fair Housing Act allows for discriminatory language to be disregarded, it doesn’t dictate that it must be removed from a property's historical documents. Consequently, the language often remains, clearly visible to potential homebuyers when deeds & other documents are provided as part of the buying process.

The result is that many times the language is shocking enough to buyers that, with the history of the property revealed, they feel uncomfortable purchasing the home, rescind their offer, and the deal busts. Particularly egregious scenarios are when existing homeowners attempt to enforce discriminatory deed restrictions against potential buyers.

The truth is, despite the Fair House Act making discriminatory language illegitimate, its lingering presence in a property's history continues its intended result: Driving away the races & ethnicities the deeds originally targeted decades ago.

OKLAHOMA SENATE BILL 570

Thankfully, the bipartisan Oklahoma Senate Bill 570, authored by Senator Joe Newhouse (R) and sponsored by Mary Boren (D) & George Young (D), aims to allow property owners to request discriminatory language be removed completely from property deeds & instruments. The hope is that SB 570 will ultimately give power to homeowners that allows them to make their home more appealing with the removal of antiquated restrictions that continue to drive away potential buyers.

At Flotilla, we know that Oklahomans are good-hearted, welcoming people who have progressed beyond what a dated documents might claim. We hope to educate our clients on what still exists in our state despite our progress, and that side-effects remain. We hope that you’ll let your state representative know that you support SB 570. And should it pass, review your property's documents for updating under a new law that could make Oklahoma an even more welcoming state!

© 2023 Flotilla Holdings, Inc.