A Colorado buyer's broker discovers that the seller's agent has been systematically providing different quality of service to buyers based on their ancestry — showing premium listings only to buyers of certain ancestries and steering others to lower-priced areas. The buyer's broker is aware of this pattern but does not report it and continues to cooperate with the listing agent. Under Colorado law, which of the following BEST describes the buyer's broker's potential liability?
Correct Answer
B) The buyer's broker may face CADA liability and CREC disciplinary action for knowingly participating in or facilitating a discriminatory practice.
Under CADA, C.R.S. § 24-34-502, and the Colorado Real Estate License Act, C.R.S. § 12-10-217, a licensee who knowingly participates in, facilitates, or fails to take appropriate action regarding a discriminatory practice can be held liable. The buyer's broker's continued cooperation with the listing agent, with knowledge of the discriminatory pattern, constitutes participation in the discriminatory practice. This exposes the buyer's broker to both CCRD administrative action under CADA and CREC license discipline. Colorado's fair housing enforcement framework holds all participating parties accountable.
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Related Topics & Key Terms
Key Terms:
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.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
In Wyoming real estate practice, a first-time salesperson applicant completes coursework. What should the licensee remember?
A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
- → A responsible broker in Wyoming asks about a first-time salesperson applicant prepares for Wyoming-specific licensing. Which answer follows Wyoming law?
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- → A responsible broker in Wyoming asks about the Commission director receives a complaint about real estate practice. Which answer follows Wyoming law?
- → For the Wyoming salesperson state portion, a first-time Wyoming salesperson applicant starts the application process. Which statement is correct?
- → A Wyoming licensee is reviewing all first-time salesperson steps are otherwise complete. What is the best answer?
- → For the Wyoming salesperson state portion, a licensee asks how long Wyoming renewal periods are. Which statement is correct?
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