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Practice Of Real EstateFair HousingHARD

A licensed Montana broker represents a seller who owns a four-unit residential building in Bozeman. The seller tells the broker he wants to sell only to a buyer who is currently married, citing his personal belief that married owners maintain properties better. The broker knows this instruction violates Montana fair housing law. Which of the following actions best describes the broker's legal and ethical obligation under Montana law?

Correct Answer

B) Refuse to follow the discriminatory instruction and advise the seller that it violates the Montana Human Rights Act

Under the Montana Human Rights Act (MCA Title 49, Chapter 2) and the Montana Real Estate Licensing Act (MCA Title 37, Chapter 51), a licensed broker may not follow a client's instruction that violates fair housing law, even when acting as the seller's agent. The broker's fiduciary duty to the client does not extend to carrying out illegal instructions. The broker must refuse the discriminatory instruction, inform the seller that it violates Montana's prohibition on marital status discrimination, and decline to implement any buyer selection criteria based on protected classes.

Answer Options
A
Follow the seller's instruction because the seller, as the principal, has the right to direct the broker's activities
B
Refuse to follow the discriminatory instruction and advise the seller that it violates the Montana Human Rights Act
C
Follow the instruction but document it in writing to protect herself from personal liability
D
Report the seller directly to the Montana Department of Justice before taking any other action

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Related Topics & Key Terms

Key Terms:

broker_dutiesmarital_statusdiscriminatory_instructionsmontana_human_rights_actfiduciary_duty

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