A Utah real estate licensee is working with a buyer who is a devout member of a particular religious group. The seller tells the licensee he will not sell to members of that religion. The licensee proceeds with the transaction anyway, presenting an offer from a different buyer instead. Which federal protected class is implicated, and what is the licensee's correct obligation?
Correct Answer
A) Religion; the licensee must not comply with the discriminatory instruction and risks personal liability
Religion is one of the seven federally protected classes under the Fair Housing Act (42 U.S.C. § 3604). A licensee who follows a client's discriminatory instruction — even as the seller's agent — is personally liable for a fair housing violation. The licensee must refuse to comply with the discriminatory instruction, and may need to withdraw from the representation if the seller insists. Licensees cannot shield themselves from liability by claiming they were 'just following client instructions.'
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Related Topics & Key Terms
Key Terms:
Related Concepts
Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
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