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Practice Of Real EstateFair_housingHARD

A licensed salesperson in Covington, Louisiana, is working with a seller who is a member of a protected class. The seller instructs the salesperson to include in the listing only buyers who are also members of the same protected class. The salesperson, believing this is the seller's right to choose, follows the instruction and declines to present offers from buyers outside that class. Which of the following most accurately describes the legal consequences under Louisiana law?

Correct Answer

D) The salesperson is liable for fair housing violations regardless of the seller's protected class status, and the seller's membership in a protected class does not authorize the discriminatory instruction.

Fair housing law does not create a 'reverse discrimination' exemption that allows a member of a protected class to impose discriminatory restrictions on a real estate transaction. Under Louisiana's Equal Housing Opportunity Act (La. R.S. 51:2606) and the federal Fair Housing Act, the prohibition on discrimination applies to all covered transactions regardless of the protected class status of the seller. The salesperson has an independent legal obligation to comply with fair housing law and cannot carry out discriminatory instructions from any client. Following such instructions exposes the salesperson to disciplinary action by LREC under La. R.S. 37:1455 and civil liability under the Louisiana Equal Housing Opportunity Act.

Answer Options
A
The salesperson is exempt because following a client's lawful instruction is a core fiduciary duty that overrides fair housing obligations.
B
The salesperson is liable only if the rejected buyers can prove they were financially qualified to purchase the property.
C
The salesperson is not liable because sellers have the absolute right to choose to whom they sell their property.
D
The salesperson is liable for fair housing violations regardless of the seller's protected class status, and the seller's membership in a protected class does not authorize the discriminatory instruction.

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Related Topics & Key Terms

Key Terms:

seller_instructionsagent_liabilityfiduciary_limitsreverse_discriminationprotected_classes

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