A Mississippi salesperson is working with a buyer who is a U.S. citizen of Vietnamese descent. The seller's agent tells the buyer's salesperson that the seller 'prefers not to sell to people from that part of the world' but that the seller will accept the offer if the price is right. The buyer's salesperson does not inform the buyer of this comment and proceeds to submit the offer, which is accepted. Which of the following most accurately describes the legal and ethical situation?
Correct Answer
C) The seller's agent violated the Mississippi Fair Housing Act by communicating the discriminatory preference, and the buyer's salesperson may have a duty to inform the buyer of information material to the transaction
Under the Mississippi Fair Housing Act, Miss. Code Ann. §43-141-1 et seq., national origin is a protected class. The seller's agent violated fair housing law by communicating the seller's discriminatory preference — this act of steering or signaling discrimination is itself a violation regardless of the transaction outcome. The buyer's salesperson, as a buyer's agent under Mississippi agency law (Miss. Code Ann. §73-35-21 et seq.), owes fiduciary duties to the buyer including the duty to disclose material information. A seller's expressed discriminatory intent could be material to the buyer's decision to proceed and could expose the buyer to future complications. The buyer's salesperson should have disclosed this information to the buyer.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida real estate licenses must be renewed biennially, and sales associates have specific post-license education requirements for their first renewal.
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.
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
A responsible broker in Wyoming asks about a nonresident applicant provides home-state evidence. Which answer follows Wyoming law?
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