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Practice Of Real EstateFair_housingHARD

A Kentucky real estate licensee is helping a buyer find a home in Elizabethtown. The buyer, who is a veteran with PTSD, asks the licensee to focus only on neighborhoods with low crime rates and quiet environments. The licensee, believing this is in the buyer's best interest, avoids showing homes in neighborhoods with higher concentrations of children and families. Under fair housing law, which of the following BEST describes the licensee's conduct?

Correct Answer

B) The licensee's conduct may violate fair housing law by steering based on familial status, regardless of the buyer's stated preferences.

Even when a buyer states a preference, a licensee who steers the buyer away from neighborhoods based on the presence of families with children may be engaging in familial status discrimination under KRS Chapter 344 and the federal Fair Housing Act. The buyer's disability does not authorize the licensee to use protected class characteristics of third parties (families with children) as a filtering criterion. The licensee must present all suitable properties and cannot use the demographic composition of a neighborhood — including the presence of families — as a search filter. A buyer's personal preference does not shield the licensee from fair housing liability.

Answer Options
A
The licensee's conduct is lawful because the buyer requested the search criteria.
B
The licensee's conduct may violate fair housing law by steering based on familial status, regardless of the buyer's stated preferences.
C
The licensee's conduct is lawful because disability is the applicable protected class and the buyer's needs justify the search parameters.
D
The licensee's conduct is lawful because avoiding high-crime areas is a legitimate, non-discriminatory business practice.

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Related Topics & Key Terms

Key Terms:

fair_housingfamilial_statussteeringbuyer_preferenceexpert_trapkrs_344

Related Concepts

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.

Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

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