A Kentucky real estate licensee is representing a buyer who is a same-sex married couple. The listing agent tells the buyer's agent that the seller 'prefers not to sell to that type of couple.' The buyer's agent relays this information to the buyers and advises them to look elsewhere. Under KRS Chapter 344 and applicable federal guidance, which parties may face fair housing liability?
Correct Answer
D) The seller, the listing agent, and the buyer's agent may all face fair housing liability
All three parties may face fair housing liability. The seller issued a discriminatory preference. The listing agent communicated that discriminatory preference to another licensee rather than refusing to act on it. The buyer's agent compounded the violation by relaying the discriminatory preference to the buyers and steering them away, rather than refusing to participate in the discrimination and advising the buyers of their rights. Under KRS Chapter 344 and federal fair housing law, licensees who participate in or facilitate discrimination — even passively — may be held liable. Note: While sex is a federal protected class, federal courts and HUD have interpreted sex discrimination to include sexual orientation and gender identity following the Supreme Court's Bostock decision (2020), and Kentucky's KRS Chapter 344 also broadly prohibits sex discrimination.
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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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