James, a broker-in-charge at a Chattanooga real estate firm, notices that one of his affiliate brokers consistently shows Black homebuyers homes only in predominantly Black neighborhoods, even when those buyers express interest in homes in other areas. James does nothing to correct this practice. Under the Tennessee Human Rights Act, which party or parties may face liability?
Correct Answer
A) Both the affiliate broker and the broker-in-charge, because the BIC has supervisory responsibility under Tennessee law
Under Tennessee law, a broker-in-charge (BIC) has supervisory responsibility over affiliate brokers working under their license. When a BIC knows of — or should know of — a discriminatory practice by an affiliate broker and fails to take corrective action, the BIC may share liability for the violation. The affiliate broker is directly liable for engaging in racial steering, which violates the Tennessee Human Rights Act. Both parties can face disciplinary action by TREC and civil liability under state and federal fair housing 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.
More Practice Of Real Estate Questions
In Wyoming real estate practice, an associate broker or salesperson is not associated with a responsible broker at renewal. What should the licensee remember?
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A Wyoming licensee is reviewing an out-of-state salesperson applicant prepares for testing. What is the best answer?
In Wyoming real estate practice, a salesperson applicant age is reviewed. What should the licensee remember?
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