A Montana real estate salesperson is working with a buyer client who is 68 years old and widowed. The buyer makes an offer on a condominium in Whitefish. The listing agent tells the buyer's salesperson privately, 'Between us, the HOA here really prefers younger, active owners — the seller would probably be more comfortable with a different buyer.' The buyer's salesperson does not repeat this comment to her client or take any action. Under Montana law, which of the following most accurately describes the potential liability in this situation?
Correct Answer
C) Both the listing agent and the buyer's salesperson may face liability under the Montana Human Rights Act
Under the Montana Human Rights Act (MCA Title 49, Chapter 2), both age and marital status are protected classes. The listing agent's statement constitutes evidence of discriminatory intent based on the buyer's age and possibly marital status (widowed). Critically, the buyer's salesperson also faces potential liability: a licensee who becomes aware of discriminatory conduct and fails to take corrective action — including failing to inform her client of information material to the transaction — may be found to have participated in or facilitated the discrimination. Under Montana Real Estate Licensing Act duties and fair housing obligations, the buyer's salesperson had an affirmative obligation to act on this information, at minimum by disclosing it to her client and potentially reporting it.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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