James, a licensed real estate broker in Lafayette, is approached by a property owner who wants to sell his home. During the listing appointment, the owner says, 'I don't want to sell to anyone who isn't Christian — this is a Christian neighborhood.' James lists the property and later declines to present an offer from a qualified Muslim buyer. Which of the following best describes James's legal exposure under Louisiana law?
Correct Answer
B) James may face discipline from LREC and liability under Louisiana's Equal Housing Opportunity Act for discriminating based on religion.
Religion is a protected class under both the federal Fair Housing Act and Louisiana's Equal Housing Opportunity Act (La. R.S. 51:2606). James cannot follow a seller's discriminatory instructions, even as a fiduciary. By declining to present the offer from a qualified Muslim buyer based on religion, James has independently violated fair housing law. He faces potential disciplinary action from LREC under La. R.S. 37:1455 for conduct violating fair housing laws, as well as civil liability under the Louisiana Equal Housing Opportunity Act.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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.
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