A property owner in Knoxville tells his affiliate broker, 'I only want to sell to people who share my faith — no one else.' The affiliate broker refuses to comply with this instruction. Under the Tennessee Human Rights Act and TREC regulations, which of the following best describes the affiliate broker's legal obligation?
Correct Answer
B) The affiliate broker must refuse discriminatory instructions and may terminate the listing if the seller insists.
Under the Tennessee Human Rights Act (Tenn. Code Ann. § 4-21-101 et seq.) and TREC regulations, an affiliate broker cannot comply with discriminatory instructions from a seller, even though the seller is the client. Discrimination based on religion is expressly prohibited. The affiliate broker's duty to obey client instructions does not extend to illegal instructions. If the seller insists on discriminatory terms, the affiliate broker has the right — and professional obligation — to terminate the listing agreement rather than participate in a violation of fair housing law.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.
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