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Practice Of Real EstateFair_housingHARD

A Georgia brokerage implements a company policy requiring all agents to document the race of prospective buyers in their client files for internal tracking. An agent believes this practice could facilitate discriminatory steering or other fair housing violations. What is the most appropriate course of action for the agent?

Correct Answer

D) Refuse to collect the racial data and report the brokerage policy to GREC for investigation.

Under the federal Fair Housing Act and the Georgia Fair Housing Act (O.C.G.A. § 8-3-202), systematically collecting racial data on prospective buyers without a legally mandated purpose (such as HMDA reporting for lenders) can facilitate discriminatory practices such as steering. An agent has an independent legal obligation not to participate in potentially discriminatory practices, regardless of company policy. Additionally, O.C.G.A. § 43-40-25 authorizes GREC to discipline licensees for violations of law, and agents who become aware of potentially unlawful brokerage practices should report them to GREC so the practice can be properly investigated and stopped. Refusing to participate AND reporting ensures both that the agent avoids personal liability and that the systemic practice is addressed.

Answer Options
A
Comply with the policy because the brokerage's qualifying broker has final authority over all office procedures under BRRETA.
B
Comply with the policy but maintain the racial data in a separate personal file rather than the official client file.
C
Continue collecting the data while privately consulting a personal attorney about potential liability.
D
Refuse to collect the racial data and report the brokerage policy to GREC for investigation.

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Related Topics & Key Terms

Key Terms:

record keepingdiscrimination preventionwhistleblower protection
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