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Practice Of Real EstateFair_housingHARD

A Georgia real estate firm's office manager instructs agents to use different GAR purchase agreements based on the buyer's race, claiming it helps 'streamline' transactions. A licensee reports this practice to GREC. What enforcement action is GREC most likely to take?

Correct Answer

A) Investigate and potentially discipline both the office manager and supervising broker

GREC will investigate discriminatory practices and can discipline both the person engaging in discrimination and the supervising broker who failed to prevent it. Under BRRETA, brokers are responsible for supervising all activities in their firm. A is insufficient for discriminatory conduct. B alone doesn't address the violation adequately. D is incorrect because GREC has independent authority to investigate and discipline licensees for fair housing violations.

Answer Options
A
Investigate and potentially discipline both the office manager and supervising broker
B
Require fair housing training for all licensees in the firm
C
Refer the matter exclusively to HUD without taking state action
D
Issue a warning letter to the office manager only

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Related Topics & Key Terms

Key Terms:

GREC enforcementbroker responsibilitydiscriminatory practices

Related Concepts

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.

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

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.

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