James is a licensed Indiana broker who receives an offer on his listing from a qualified buyer. The seller calls James and says, 'I don't want to sell to that buyer — I can tell from the name that she's Middle Eastern.' James tells the seller that refusing on this basis would violate fair housing law, but the seller insists. James presents the offer and the seller signs a rejection. James then continues to represent the seller. Which statement best describes James's obligations and potential liability?
Correct Answer
A) James must withdraw from the listing immediately upon the seller's refusal to comply with fair housing law.
Under the Fair Housing Act and Indiana license law (IC 25-34.1), a broker who continues to represent a client after that client has expressed discriminatory intent may be considered to be facilitating or participating in a fair housing violation. The appropriate course of action when a seller refuses to comply with fair housing law is for the broker to withdraw from the representation. Continuing to market and represent the seller after a known discriminatory refusal exposes the broker to fair housing liability.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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.
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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