A real estate broker in St. Cloud, Minnesota is training new agents on fair housing compliance. She explains that Minnesota has more protected classes than federal law. An agent asks: 'If a seller gives me an instruction that would violate the Minnesota Human Rights Act but NOT the federal Fair Housing Act, am I still required to refuse the instruction?' What is the correct answer under Minnesota law?
Correct Answer
A) Yes, because Minnesota licensees must comply with both state and federal fair housing law, and state law may provide greater protections than federal law
Under the Supremacy Clause, federal law preempts conflicting state law — but state law can provide greater protections than federal law without being preempted. The federal Fair Housing Act explicitly states that it does not preempt state or local fair housing laws that provide equal or greater protection. Minnesota licensees must comply with both federal and state fair housing law. If a seller's instruction violates the Minnesota Human Rights Act (Ch. 363A) — even if it does not violate the federal Fair Housing Act — the licensee must refuse to follow it.
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Related Topics & Key Terms
Key Terms:
Related Concepts
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
A group boycott is an illegal antitrust practice in which two or more competing real estate businesses agree to refuse to work with a specific person, company, or entity in order to harm that party's ability to compete.
In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.
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