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Practice Of Real EstateLicense_lawHARD

Principal Broker Thomas operates a property management company in Portland. His Broker, Angela, manages a residential rental property for an owner-client. The owner instructs Angela to refuse to rent to Section 8 voucher holders. Thomas is aware of the instruction and does not object. Under Oregon law, which of the following best describes Thomas's liability in this situation?

Correct Answer

D) Thomas may be subject to disciplinary action by OREA because Principal Brokers are responsible for supervising their Brokers' compliance with all applicable laws

Under ORS Chapter 696, a Principal Broker has a supervisory responsibility for the conduct of all Brokers operating under their license. Additionally, refusing to rent to Section 8 voucher holders constitutes discrimination based on source of income, which is a protected class under Oregon's Fair Housing Act (ORS 659A.421) — a protection that extends beyond federal law. Thomas's failure to correct the discriminatory instruction exposes him to OREA disciplinary action for failing to supervise and for facilitating a fair housing violation.

Answer Options
A
Thomas has no liability because Angela, not Thomas, is the one interacting with prospective tenants
B
Thomas is only liable if he personally communicated the discriminatory instruction to a prospective tenant
C
Thomas is exempt from liability because the instruction came from the property owner, not from the brokerage
D
Thomas may be subject to disciplinary action by OREA because Principal Brokers are responsible for supervising their Brokers' compliance with all applicable laws

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Related Topics & Key Terms

Key Terms:

principal_broker_supervisionfair_housingsource_of_incomeliabilityproperty_management

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