A Massachusetts real estate brokerage wants to advertise that a property is located near 'excellent public schools' to attract families. The brokerage is aware that the school district's demographics are predominantly of one racial group. Under Massachusetts law, which of the following best describes the risk associated with this advertising strategy?
Correct Answer
D) The advertisement may violate MGL Chapter 151B if it is used as a coded reference to neighborhood racial composition and is intended to steer buyers based on race
Under MGL Chapter 151B, Massachusetts prohibits discrimination in housing based on race, color, national origin, and other protected characteristics. While advertising school quality is not inherently discriminatory, using school district references as a coded proxy for neighborhood racial composition — with the intent or effect of steering buyers based on race — can constitute discriminatory advertising under Chapter 151B and federal fair housing law. Massachusetts licensees must be aware that seemingly neutral advertising language can violate fair housing laws if used to signal neighborhood demographics to prospective buyers.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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.
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