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Practice Of Real EstateFair_housingMEDIUM

A seller tells her Oregon broker, James, that she does not want to sell her home to anyone of a particular religion. James knows this instruction violates fair housing law. Under Oregon license law and fair housing obligations, what is James's most appropriate course of action?

Correct Answer

A) Refuse to follow the discriminatory instruction and advise the seller that he cannot comply with it

Religion is a federally protected class under the Fair Housing Act, and Oregon fair housing law (ORS 659A.421) also prohibits religious discrimination. A licensee cannot follow a client's discriminatory instructions, even if those instructions come from the client to whom the licensee owes agency duties. James must refuse to comply and inform the seller that such instructions are unlawful. Continuing to represent the seller while refusing to enforce the illegal instruction may be possible, but James cannot act on the discriminatory directive.

Answer Options
A
Refuse to follow the discriminatory instruction and advise the seller that he cannot comply with it
B
Disclose the seller's preference to all prospective buyers so they can self-select out of the process
C
Follow the instruction only if the seller provides the request in writing to protect James from liability
D
Follow the seller's instruction because the seller is his client and he owes fiduciary duties to the seller

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Related Topics & Key Terms

Key Terms:

religionfederal_fair_housingbroker_obligationsdiscriminatory_instructions

Related Concepts

In real estate, the distinction between an independent contractor and an employee determines tax treatment, liability, and the level of control a broker may exercise over the agent's daily activities. Most real estate agents operate as independent contractors.

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.

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