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Practice Of Real EstateFair HousingMEDIUM

An affiliate broker in Nashville receives a listing for a single-family home. The seller tells the broker, 'I only want to sell to American-born buyers — no immigrants.' The broker explains this is illegal and refuses to market the property with any such restriction. The seller insists and threatens to cancel the listing. What is the affiliate broker's most appropriate course of action under Tennessee law?

Correct Answer

C) Refuse to comply with the discriminatory instruction and, if the seller insists, withdraw from the listing

Under the Tennessee Human Rights Act and the federal Fair Housing Act, national origin is a protected class. An affiliate broker cannot comply with a seller's instruction to discriminate based on national origin. The broker's obligation is to refuse the discriminatory instruction. If the seller insists on maintaining the discriminatory requirement, the broker's appropriate course of action is to withdraw from the listing rather than participate in an illegal act. Compliance with a discriminatory instruction would expose the broker to disciplinary action by TREC and potential civil liability.

Answer Options
A
Honor the seller's instruction because the seller has the right to choose their buyer as a property owner
B
Report the seller's instruction to TREC immediately before taking any further action
C
Refuse to comply with the discriminatory instruction and, if the seller insists, withdraw from the listing
D
Comply with the instruction only if the seller provides a written statement taking full legal responsibility

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Related Topics & Key Terms

Key Terms:

national_originprotected_classesaffiliate_brokerdiscriminatory_instructionfair_housing

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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