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Practice Of Real EstateFair_housingHARD

A New Jersey real estate salesperson is working with a buyer who is in a same-sex civil union. The salesperson's supervising broker instructs her not to show properties in a particular neighborhood because 'those sellers won't accept that kind of buyer.' The salesperson refuses the instruction and reports the broker to the NJREC. Which of the following BEST describes the legal and professional obligations involved?

Correct Answer

D) The broker's instruction violates the NJ LAD's protections for civil union status and sexual orientation, and a licensee who follows such an instruction participates in illegal discrimination.

Under the New Jersey Law Against Discrimination (N.J.S.A. 10:5-1 et seq.), both civil union status and sexual orientation are protected classes in housing. The broker's instruction constitutes illegal steering — directing buyers away from certain areas based on protected characteristics. A licensee who follows such an instruction is personally participating in illegal discrimination and can face disciplinary action under both the NJ LAD and the NJ Real Estate License Act. The salesperson is correct to refuse and report the conduct.

Answer Options
A
The broker's instruction is permissible if the sellers have documented their preference in a written listing agreement.
B
The salesperson is obligated to follow her supervising broker's instructions, and the broker's conduct is a matter for the sellers to resolve privately.
C
The salesperson's refusal is improper because steering decisions are the broker's prerogative under the NJ Real Estate License Act.
D
The broker's instruction violates the NJ LAD's protections for civil union status and sexual orientation, and a licensee who follows such an instruction participates in illegal discrimination.

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Related Topics & Key Terms

Key Terms:

LADcivil_union_statussexual_orientationsteeringbroker_supervisionexpert_trap

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.

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