A covenant that is attached to all houses in a neighborhood built in the 1950s states that the houses may not be sold to "members of any minority race." This covenant is:
A) enforceable since it was voluntarily agreed to by the buyers and sellers
B) not favored by public policy and so will expire when the houses are torn down
C) in violation of public policy and so not enforceable
D) in violation of public policy and, under federal law, requires home owners to pay $1,000 a year fines until removed
E) none of the other choices

Question

Quizplus · Accepted Answer

The covenant is in violation of public policy since it promotes racial segregation and discrimination, and therefore it is not enforceable. Federal law prohibits racial discrimination in housing, and such covenants are considered illegal and unenforceable. Homeowners cannot be forced to pay fines to remove an unenforceable covenant, but they may need to take legal action to have it removed from their property documents.

A Covenant That Is Attached to All Houses in a Neighborhood