A licensed real estate broker in Waterbury is assisting a landlord who owns a two-unit, owner-occupied building. The landlord instructs the broker to advertise the unit as preferred for 'working professionals only' and to decline applicants who rely on disability benefits as their primary income source. The broker follows the landlord's instructions. Which of the following best describes the legal consequences under Connecticut law?
Correct Answer
C) Both the landlord and the broker face liability: the landlord because use of a broker voids the owner-occupant exemption, and the broker because Connecticut law prohibits licensees from following client instructions that violate fair housing laws.
Under CGS § 46a-64b, once a licensed broker is involved, the owner-occupant exemption is void, exposing the landlord to full fair housing liability. The instruction to decline applicants based on disability benefits (a lawful source of income and a disability-related characteristic) violates Connecticut's Fair Housing Act. Additionally, Connecticut licensees have an independent professional duty not to carry out client instructions that violate fair housing laws. The broker faces both license discipline under CGS Chapter 392 and civil liability under CUTPA and the Fair Housing Act for following discriminatory directives.
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Related Concepts
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FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
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