A Nevada broker is representing a seller whose home is listed in a predominantly Hispanic neighborhood in Las Vegas. A buyer's agent calls and asks whether the seller would consider offers from buyers who are not 'from the area.' The listing broker suspects the buyer's agent is attempting to steer non-Hispanic buyers away from the neighborhood. Under the federal Fair Housing Act, which concept best describes the buyer's agent's potential conduct?
Correct Answer
A) Steering, because the agent may be directing buyers away from a neighborhood based on its national origin or racial composition.
Steering is the practice of directing buyers toward or away from neighborhoods based on protected class characteristics such as race or national origin. If the buyer's agent is discouraging non-Hispanic buyers from considering the neighborhood based on its ethnic composition, this constitutes steering based on national origin and/or race, both of which are federally protected classes under the Fair Housing Act. The listing broker should document the call and consider reporting it to HUD or the Nevada Real Estate Division.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.
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.
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