A Michigan homeowner sells her home through a licensed broker. During the transaction, the buyer's agent discovers that the seller had instructed the listing broker to reject any offers from unmarried couples. The listing broker followed these instructions and rejected two offers from cohabiting partners before accepting an offer from a married couple. Both the seller and the listing broker are now facing a fair housing complaint. Which of the following most accurately describes the liability of the listing broker under Michigan law?
Correct Answer
D) The listing broker is liable under the Michigan Elliott-Larsen Civil Rights Act for following and implementing the seller's discriminatory instructions
Under the Michigan Elliott-Larsen Civil Rights Act (MCL 37.2102), marital status is a protected class in housing. A listing broker who actively follows and implements a seller's discriminatory instructions — rejecting offers from unmarried couples — is a direct participant in the illegal discrimination and is independently liable under the Elliott-Larsen Act. Michigan law does not allow a licensee to shield themselves from liability by attributing the discrimination to the client. Additionally, the broker's conduct may constitute a violation of the Michigan Occupational Code (MCL 339.2512), subjecting the broker to disciplinary action by LARA.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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