EstatePass
Practice Of Real EstateFair HousingHARD

A buyer's broker in Indiana is working with a client who has disclosed that she has bipolar disorder. The broker's managing broker instructs the broker not to show the client properties in a certain upscale neighborhood because 'those sellers won't want a mentally ill person in the building.' The broker follows these instructions. Under the federal Fair Housing Act, which party or parties have violated fair housing law?

Correct Answer

A) Both the broker and the managing broker, because each is individually liable for participating in discriminatory conduct

Under the Fair Housing Act, both the individual licensee who carries out discriminatory conduct and the supervising broker who instructs or enables that conduct are liable. The broker is liable for personally steering the client, and the managing broker is liable for directing the discriminatory conduct. Following a supervisor's unlawful instruction is not a defense under fair housing law. Additionally, mental impairments such as bipolar disorder are covered under the disability protected class.

Answer Options
A
Both the broker and the managing broker, because each is individually liable for participating in discriminatory conduct
B
Neither party, because bipolar disorder is a mental condition and only physical disabilities are protected under the Fair Housing Act
C
Only the managing broker, because the broker was following lawful supervisory instructions
D
Only the broker, because the managing broker gave instructions but did not personally show properties

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Related Topics & Key Terms

Key Terms:

disabilitymental_impairmentsteeringmanaging_broker_liabilityfederal_protected_classes

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