Sarah, a licensed Indiana broker, is working with a buyer named Chen Wei. Sarah's managing broker tells her to avoid showing properties in certain Carmel neighborhoods to Mr. Wei because 'those sellers won't be comfortable.' Sarah complies and limits the properties she shows. This conduct is best described as which prohibited practice?
Correct Answer
C) Steering
Steering is the illegal practice of guiding buyers toward or away from certain neighborhoods based on a protected class characteristic. By limiting the properties shown to Mr. Wei based on his apparent national origin or race, Sarah is engaging in steering, which violates the federal Fair Housing Act and Indiana's Fair Housing Act (IC 22-9.5). Both the broker and managing broker are liable.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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