James, an Alabama licensee, represents a seller who is a private individual selling a single-family home. The seller tells James she prefers not to sell to anyone of a different race. James declines to present offers from minority buyers. A buyer files a fair housing complaint. Which of the following best describes the outcome under the Alabama Fair Housing Law?
Correct Answer
B) James is liable for a fair housing violation because race is a protected class and licensees cannot follow discriminatory client instructions.
Under Code of Alabama §24-8-1 et seq., race is a protected class. Alabama licensees are independently obligated to comply with fair housing law and cannot follow discriminatory client instructions. Critically, even if the federal 'Mrs. Murphy' exemption might apply to the seller as a private individual acting without a licensed agent, that exemption does NOT apply when a real estate licensee is involved in the transaction. James's participation in the discriminatory conduct — declining to present offers from minority buyers — makes him independently liable under Alabama's fair housing law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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