EstatePass
Practice Of Real EstateFair_housingMEDIUM

A seller in Montclair instructs her listing agent to only accept offers from buyers of a particular ethnic ancestry, citing a desire to preserve the neighborhood's cultural character. The listing agent refuses to follow this instruction. Which of the following best explains why the agent is correct to refuse?

Correct Answer

A) Ancestry is a protected class under the NJ LAD, and following the instruction would constitute illegal discrimination.

Ancestry is an explicitly protected class under the New Jersey Law Against Discrimination (N.J.S.A. 10:5-1 et seq.). Refusing to show or sell property based on a buyer's ancestry is illegal housing discrimination. A licensed agent who follows such an instruction would be participating in the discrimination and would be subject to disciplinary action under both the NJ LAD and the NJ Real Estate License Act.

Answer Options
A
Ancestry is a protected class under the NJ LAD, and following the instruction would constitute illegal discrimination.
B
The NJ Real Estate License Act prohibits agents from accepting seller instructions regarding buyer qualifications.
C
Ancestry is a protected class under the federal Fair Housing Act, and following the instruction would violate federal law only.
D
The NJ Consumer Fraud Act prohibits sellers from specifying buyer preferences based on cultural background.

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

LADancestryprotected_classesagent_responsibility

Related Concepts

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.

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing