A real estate broker in Kona has a policy of charging higher commission rates to sellers in predominantly Native Hawaiian neighborhoods, claiming that properties in those areas require more marketing effort. A Native Hawaiian seller pays a significantly higher commission than sellers in other neighborhoods for comparable services. Under Hawaii fair housing and civil rights law, this practice most likely constitutes:
Correct Answer
B) A violation of HRS Chapter 515 based on ancestry discrimination in the terms and conditions of real estate services
HRS Chapter 515 prohibits discrimination not only in the sale or rental of housing but also in the terms, conditions, and privileges of real estate services based on protected classes, including ancestry. Charging higher commission rates to sellers in predominantly Native Hawaiian neighborhoods—without a legitimate, non-discriminatory business justification—constitutes ancestry discrimination in the terms of real estate services. This is a form of disparate treatment that violates Hawaii's fair housing law even if the broker does not explicitly state discriminatory intent.
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