A Georgia broker shows a rental property to several prospects. After one showing, the property owner instructs the broker to reject a particular applicant based on the applicant's religion. The broker complies, telling the applicant the unit is no longer available. When the rejected applicant files a fair-housing complaint, the broker responds that the decision was the client's, not the broker's. Is this an adequate defense?
Correct Answer
A) No — claiming that the broker was merely following the client's instructions is not a valid defense to a fair-housing complaint.
Under both the federal Fair Housing Act (42 U.S.C. § 3604) and the Georgia Fair Housing Act (O.C.G.A. § 8-3-202), a broker has an independent legal obligation not to discriminate. Agency law does not override fair-housing law. A licensee who follows a client's discriminatory instruction is personally liable for the violation. The Georgia Real Estate Commission can also impose licensing discipline under O.C.G.A. § 43-40-25 for conduct that violates fair-housing statutes.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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