A seller in Sitka instructs her listing broker to avoid showing the property to individuals who are single parents. The broker, wanting to keep the listing, does not explicitly advertise this restriction but steers single parents away by telling them the property is 'not a good fit for their situation.' A single father who was steered away files a complaint. Which of the following statements most accurately describes the broker's legal exposure under Alaska law?
Correct Answer
C) The broker may be liable under AS 18.80 for steering based on parenthood and may face AREC disciplinary action, regardless of whether the seller gave the instruction.
Under AS 18.80, parenthood is a protected class in Alaska. Steering — directing prospective buyers or tenants away from properties based on a protected class — is a form of illegal discrimination. A broker who follows a client's discriminatory instructions and actively steers protected individuals away is not shielded by the fact that the seller gave the instruction. The broker has an independent legal duty to comply with AS 18.80. Additionally, AREC has authority under AS 08.88 and 12 AAC 64 to discipline a licensee who engages in or facilitates discriminatory conduct, including license suspension or revocation.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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