A vendor asks their agent to only show the property to 'suitable buyers' and specifically requests not to show it to people from certain ethnic backgrounds. How should the agent respond?

Q: What is the correct answer to: A vendor asks their agent to only show the property to 'suitable buyers' and specifically requests not to show it to people from certain ethnic backgrounds. How should the agent respond?

The correct answer is Refuse the instruction as it violates anti-discrimination laws. Option B is correct because real estate agents are legally bound by anti-discrimination legislation at both federal and state levels. The Australian Consumer Law and various state Fair Trading Acts prohibit discrimination in the provision of services based on protected characteristics including race and ethnicity. Agents have a professional duty to refuse instructions that would require illegal conduct, regardless of the principal's wishes. Compliance with anti-discrimination laws is mandatory and overrides any contractual obligations to the vendor.

Q: What background knowledge is needed for this Agency Practice question?

Australian anti-discrimination law operates at both federal and state levels, prohibiting discrimination in goods and services provision based on protected characteristics including race, ethnicity, religion, gender, age, and disability. The Australian Consumer Law, Fair Trading Acts, and Equal Opportunity Acts create legal obligations for real estate agents. Professional conduct standards require agents to comply with all relevant laws. The agent-principal relationship creates fiduciary duties, but these cannot extend to illegal activities. Agents must refuse instructions that would require discrimination, as this protects both the agent's professional standing and vulnerable community members' rights to equal treatment.

Q: What is a good way to remember the answer to this Agency Practice question?

Remember LEGAL: Laws override Everything - even client instructions. Agents must Educate clients about discrimination laws, refuse Guilty conduct, maintain their professional standing, and protect All people's rights. Think of a legal boundary fence that cannot be crossed, regardless of who asks you to step over it. When you see discrimination questions, immediately think 'LEGAL boundary' - laws always override client wishes when those wishes involve illegal discrimination. The fence analogy reminds you that some boundaries cannot be crossed, even for clients.

Q: What exam tip applies to this Agency Practice question?

For discrimination questions, always choose the option that refuses illegal instructions and upholds anti-discrimination laws. Client wishes never override legal obligations in real estate practice.

Q: How does this Agency Practice concept apply in Australian real estate practice?

A vendor instructs their agent not to show their property to families with children, claiming they want 'quiet tenants only.' The agent must refuse this instruction as it violates anti-discrimination laws protecting families. The agent should explain that discrimination based on family status is illegal and could result in complaints to fair trading authorities. Instead, the agent should suggest lawful alternatives like specifying 'adults-only' buildings where legally permitted, or focusing marketing on features that appeal to the vendor's preferred demographic without explicitly excluding protected groups.

Question

Agency PracticeProfessional ConductMEDIUM

A vendor asks their agent to only show the property to 'suitable buyers' and specifically requests not to show it to people from certain ethnic backgrounds. How should the agent respond?

Answer Options

A

Comply with the vendor's wishes as they are the principal

B

Refuse the instruction as it violates anti-discrimination laws

C

Agree verbally but continue to show all interested parties

D

Refer the vendor to another agent who might accept these terms