Kevin, a North Dakota broker, lists a property in Grand Forks. A prospective buyer who practices a minority religion submits a full-price offer. The seller instructs Kevin to reject the offer and tell the buyer the property is under contract, which it is not. Kevin refuses and presents the offer. The seller then directly contacts the buyer's agent and falsely claims the property is under contract. Which statement BEST describes the fair housing liability in this situation?
Correct Answer
C) Kevin may still face liability if he fails to take additional steps, such as documenting the seller's instructions and reporting the potential violation to NDREC or HUD.
Under the federal Fair Housing Act and North Dakota real estate license law, a licensee who is aware of a client's discriminatory conduct has affirmative obligations beyond simply refusing to participate. Kevin must document the seller's discriminatory instructions, inform the seller that such conduct violates federal and state law, and may be required to report the potential violation to HUD or NDREC. Merely presenting the offer is insufficient if Kevin continues the listing relationship without taking further action, as continuing to represent a seller engaged in discrimination can expose Kevin to liability under fair housing law and NDREC disciplinary rules.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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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