A prospective buyer submits an offer on a home listed by an Indiana broker. The buyer's offer is financially strong and well above asking price. The listing broker notices the buyer's name suggests South Asian heritage and, without the seller's knowledge, delays presenting the offer until a less qualified buyer with a different background submits an offer. The seller ultimately accepts the second offer. Which statement most accurately describes the listing broker's conduct?
Correct Answer
B) The broker violated the Fair Housing Act by delaying presentation of the offer based on the buyer's perceived national origin.
The Fair Housing Act prohibits making housing unavailable or otherwise denying housing based on a protected class (42 U.S.C. § 3604(a)). Deliberately delaying the presentation of an offer based on the buyer's perceived national origin is a form of discrimination that makes housing unavailable to a protected class member. The broker's independent discriminatory act is a violation regardless of whether the seller was aware or directed it. The broker is the primary violator here.
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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.
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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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