Marcus, a real estate broker in Covington, Kentucky, receives a listing for a single-family home. The seller instructs Marcus to 'only show the home to Christian buyers.' Marcus follows the seller's instructions and declines to schedule showings for buyers of other faiths. Which of the following best describes the legal consequences under Kentucky law?
Correct Answer
C) Both Marcus and the seller may be liable for fair housing violations under KRS Chapter 344.
Under KRS Chapter 344 and the federal Fair Housing Act, religion is a protected class. A licensee cannot follow discriminatory instructions from a seller, even under the duty of obedience. Both the seller (as the principal who issued discriminatory instructions) and the licensee (for carrying them out) can be held liable for fair housing violations. A licensee's duty to obey does not extend to illegal acts.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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