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Practice Of Real EstateFair HousingHARD

A Colorado broker is representing a seller whose property is in a neighborhood that has historically been home to a specific ethnic and religious community. The broker, without the seller's instruction, decides to market the property exclusively through publications and websites catering to that same ethnic and religious community. A fair housing complaint is filed. Which of the following best describes the broker's potential violation?

Correct Answer

B) The broker may have violated CADA by engaging in selective marketing that effectively steers buyers based on ancestry and creed.

Under CADA (C.R.S. § 24-34-502) and the federal Fair Housing Act, selective marketing that targets only buyers of a specific ethnic or religious background — even without an explicit exclusionary statement — can constitute discriminatory steering based on ancestry (ethnic background) and creed (religious community). The broker's unilateral decision to limit marketing to a specific community effectively channels buyers based on protected characteristics, which is a recognized form of fair housing violation.

Answer Options
A
The broker has no liability because marketing to a targeted community is a legitimate business strategy.
B
The broker may have violated CADA by engaging in selective marketing that effectively steers buyers based on ancestry and creed.
C
The broker violated CADA only if the seller directed the targeted marketing strategy.
D
The broker's conduct is permissible because advertising in community-specific publications is protected free speech.

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Related Topics & Key Terms

Key Terms:

cadaancestrycreedselective_marketingsteeringstate_protected_classesbroker_liability

Related Concepts

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

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