A South Carolina real estate licensee is showing homes to a buyer couple. During the tour, the buyer mentions that they attend a mosque. Later that day, the licensee calls the seller's agent and says, 'You should know that these buyers are Muslim — I just thought you should be aware.' The seller's agent passes this information to the seller, who then rejects the buyers' subsequent offer. Under South Carolina's fair housing law, which of the following best describes the legal exposure of the licensee who disclosed the buyers' religion?
Correct Answer
B) The licensee may be liable for a fair housing violation because disclosing a buyer's religion to influence a transaction violates the religion protected class.
Under both the federal Fair Housing Act and South Carolina's fair housing law (S.C. Code Ann. §§ 31-21-10 et seq.), a licensee who discloses a buyer's religion to a seller or seller's agent in a context that could influence the seller's decision to accept or reject an offer may be liable for a fair housing violation based on religion. This conduct facilitates discrimination and can constitute a violation even if the licensee did not make the final discriminatory decision. SCREC could also discipline the licensee for this conduct under the license law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.
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