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.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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