A buyer asks an Indiana broker whether a particular neighborhood has 'a lot of people like us — you know, same background.' The broker wants to answer helpfully. Which response is most consistent with the broker's fair housing obligations?
Correct Answer
C) The broker should decline to provide information about the racial or ethnic composition of any neighborhood and redirect the buyer to objective property and community resources.
Under the Fair Housing Act, providing information about the racial, ethnic, or national origin composition of a neighborhood in response to a buyer's inquiry constitutes steering and violates 42 U.S.C. § 3604(a) and (d). The broker must decline to provide such information and should redirect the buyer to objective community resources (schools, crime statistics, amenities) that are not based on protected class characteristics. This is the standard response required of Indiana licensees under IC 22-9.5.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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