EstatePass
Practice Of Real EstateFair HousingHARD

A Tennessee real estate brokerage firm receives a complaint from a Black homebuyer who alleges that an affiliate broker told him a home in a predominantly white neighborhood in Germantown was 'already under contract,' when in fact it was still available. The homebuyer later learned the truth when the home was shown to a white buyer the following day. The homebuyer files complaints with both the Tennessee Human Rights Commission and HUD. Which of the following most accurately describes the possible outcomes under Tennessee law?

Correct Answer

A) The Tennessee Human Rights Commission and HUD may both investigate the complaint concurrently, and a finding of discrimination could result in state and federal remedies including damages, injunctive relief, and civil penalties.

Under the Tennessee Human Rights Act (Tenn. Code Ann. § 4-21-101 et seq.) and the federal Fair Housing Act, a complainant may file with both the Tennessee Human Rights Commission and HUD simultaneously. The two agencies have a work-sharing agreement and may investigate concurrently. A finding of discrimination can result in multiple remedies including compensatory damages, punitive damages, injunctive relief, and civil penalties. This dual-filing right is an important feature of Tennessee's fair housing enforcement framework and reflects the state law's role as a complement to, not a replacement for, federal fair housing protections.

Answer Options
A
The Tennessee Human Rights Commission and HUD may both investigate the complaint concurrently, and a finding of discrimination could result in state and federal remedies including damages, injunctive relief, and civil penalties.
B
The complaint must first be resolved by the Tennessee Human Rights Commission before HUD has jurisdiction to investigate the same matter.
C
The homebuyer must choose between filing with the Tennessee Human Rights Commission or HUD; filing with both simultaneously is not permitted under Tennessee law.
D
Because the affiliate broker acted independently, only the affiliate broker is subject to liability; the brokerage firm cannot be held vicariously liable under the Tennessee Human Rights Act.

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Key Terms:

enforcementdual_filingvicarious_liabilitytennessee_human_rights_commissionhudrace

Related Concepts

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.

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing