A Michigan real estate salesperson is showing a listing when the seller calls and says, 'I don't want you to show the home to anyone who is divorced—I had a bad experience with a divorced buyer before.' The salesperson is aware that marital status is a protected class under the Michigan Elliott-Larsen Civil Rights Act. The salesperson nonetheless follows the seller's instruction and declines to show the home to a divorced prospective buyer. Which of the following best describes the consequences the salesperson may face?
Correct Answer
B) The salesperson may face disciplinary action under the Michigan Occupational Code and civil liability under the Elliott-Larsen Act, because following a seller's discriminatory instruction does not shield a licensee from liability
Under the Michigan Elliott-Larsen Civil Rights Act (MCL 37.2502), marital status is a protected class in housing. A licensed real estate salesperson who carries out a seller's discriminatory instruction is independently liable for the fair housing violation—following a client's instruction is not a defense. Additionally, under the Michigan Occupational Code (MCL 339.2518), engaging in discriminatory conduct is a ground for license discipline by LARA-BPL. The salesperson faces both potential civil liability under the Elliott-Larsen Act and professional disciplinary action under the Occupational Code. Fiduciary duties to a client do not override statutory fair housing obligations.
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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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