An Idaho licensee's seller client instructs her to screen buyers by asking about their country of birth and to avoid showing the property to anyone who 'doesn't seem American.' The licensee complies and later claims she was just following her client's instructions. Under the Idaho Fair Housing Act and IREC licensing rules, which of the following best describes the licensee's legal exposure?
Correct Answer
B) The licensee may face fair housing liability and IREC disciplinary action because following a client's discriminatory instructions is not a defense.
Under the Idaho Fair Housing Act (Idaho Code § 67-5909 et seq.) and IREC licensing regulations, following a client's discriminatory instructions is not a valid defense for a licensee. National origin is a protected class under Idaho law, and a licensee who actively participates in discriminatory screening—regardless of who gave the instruction—is personally liable for fair housing violations. IREC may also impose disciplinary action, including license suspension or revocation, for conduct that violates fair housing law. Fiduciary duty does not extend to carrying out unlawful instructions.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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