Real Estate Agents Want Ban on ‘Sold’ Signs Lifted

Real estate agents are suing to force the city to lift a civil rights era ban on the posting of “sold” signs outside homes--a law that was aimed at countering “white flight” as neighborhoods became integrated.

The 1,500-member Greater Philadelphia Assn. of Realtors filed the lawsuit in federal court last month after a five-year effort to repeal the law died in the City Council. The lawsuit asks a judge to declare the ban unconstitutional.

“I think we’re the last big city with that law on the books and still being enforced,” said Kevin Vaughan, executive director of the Philadelphia Commission on Human Relations, which supported the ordinance three decades ago and now favors its repeal.

During the tumult of the 1960s, with federal civil rights laws opening up traditionally white neighborhoods to blacks, authorities feared an exodus of whites afraid of falling property values. They said such fears were sometimes fanned by unscrupulous real estate agents trying to get whites to sell out fast--a practice dubbed blockbusting.

The City Council in 1970 passed an ordinance banning “sold” signs outside homes.

“ ‘Sold’ signs were targeted because that was the clincher for people to kind of say, ‘Look, the Browns are selling their house because African Americans are moving in. Maybe we should sell too, before the property values go down,’ ” Vaughan said.

Other municipalities, such as Willingboro, N.J., went even further, banning both “sold” and “for sale” signs.

But in 1977, the U.S. Supreme Court struck down Willingboro’s ban, ruling that the community was violating the 1st Amendment by “restricting the free flow of truthful commercial information.”

Philadelphia, undeterred, asked real estate agents to choose: They could put up “sold” signs or “for sale” signs, but not both. Agents decided to continue putting up “for sale” signs.

Councilman James Kenney introduced a bill for the real estate agents to try to repeal the ban, but support evaporated after some neighborhood groups opposed the repeal.

Philadelphia Realtors organization president Frank Jacovini said the ban on “sold” signs is unnecessary because of stronger fair-housing laws. His group also believes “sold” signs actually serve an important public purpose by informing people that homes are selling and the community is viable.

But Christopher Artur, a longtime Philadelphia broker, said he doesn’t see any benefit from the signs, and changing it in the current strong housing market would be harmful.

“If I put up six ‘sold’ signs on one block, what does that tell you?” he asked. “That people are selling and people are fleeing.”

Ralph Holmen, associate general counsel of the National Assn. of Realtors, said some areas still restrict or ban “for sale” or other real estate signs, but Philadelphia’s ban on only “sold” signs may be unique.

Restrictions or bans are usually directed at “for sale” signs, sometimes to counter white flight. Once challenged, they fare poorly in the courts, he said.