Patricia, a broker-in-charge in Nashville, instructs her affiliate broker Kevin to avoid marketing a listing in a historically Black neighborhood to white buyers, believing this will help the sellers get 'the right buyers.' Kevin follows these instructions. A white buyer who was steered away from the listing files a complaint with the THRC. Under Tennessee fair housing enforcement principles, which of the following most accurately describes the potential liability of Patricia and Kevin?
Correct Answer
D) Both Patricia and Kevin may be liable, and TREC may discipline both for their respective roles in the violation.
Under Tennessee fair housing enforcement principles and Tenn. Code Ann. § 62-13-312, both the directing party (Patricia as broker-in-charge) and the executing party (Kevin as affiliate broker) can be held liable for discriminatory conduct. Patricia's instruction to steer buyers based on race constitutes a direct fair housing violation, and Kevin's execution of those instructions makes him a participant in the violation. The fact that Kevin was following orders does not insulate him from liability — fair housing law imposes obligations on each individual licensee. TREC may discipline both for their respective roles, and the THRC may find both liable under the Tennessee Human Rights Act.
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Related Topics & Key Terms
Key Terms:
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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