A Utah real estate licensee works in a county where a local ordinance adds source of income as a protected class. A prospective tenant presents a Section 8 housing voucher to rent a home in that county. The property owner instructs the licensee to reject the application solely because the tenant uses a Section 8 voucher. Which statement best describes the licensee's legal exposure?
Correct Answer
A) The licensee faces potential liability under the local ordinance if they follow the owner's instruction to reject the voucher holder
While source of income is not a federally protected class under the Fair Housing Act, and is not protected statewide under the Utah Fair Housing Act (Utah Code Ann. § 57-21), several Utah municipalities including Salt Lake City and others have enacted local ordinances adding source of income — including Section 8 housing vouchers — as a locally protected class. A licensee who follows a discriminatory instruction that violates a local ordinance faces personal liability under that ordinance. Licensees must know the fair housing protections applicable in the specific jurisdiction where they practice, including local ordinances that exceed state and federal protections.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
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.
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