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A deed restriction prohibiting the sale of property to certain ethnic groups is?

  1. required by law

  2. is illegal and unenforceable

  3. a common practice

  4. enforced by local governments

The correct answer is: is illegal and unenforceable

Deed restrictions prohibiting the sale of property to certain ethnic groups are illegal and unenforceable because they violate the Fair Housing Act, which prohibits discrimination on the basis of race, color, religion, sex, familial status, or national origin in the sale, rental, or financing of housing. These types of restrictions were commonly used in the past, but are now considered discriminatory and illegal. Local governments may enforce laws against discriminatory housing practices and can take action against those who attempt to enforce deed restrictions that violate the Fair Housing Act.