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Practice Of Real EstateFair HousingHARD

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.

Answer Options
A
A lawful business practice because brokers have discretion to set their own commission rates
B
A violation of HRS Chapter 515 based on ancestry discrimination in the terms and conditions of real estate services
C
A violation only if the broker can be proven to have explicitly stated an intent to discriminate
D
A violation of HRS Chapter 467 licensing law only, with no fair housing implications

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Related Topics & Key Terms

Key Terms:

fair_housingancestrynative_hawaiiancommission_discriminationterms_and_conditionsHRS_515disparate_treatment

Related Concepts

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.

Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.

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