A Utah real estate licensee shows a home to a buyer who is African American. After the showing, the listing agent tells the buyer's agent: 'The seller is very particular about who buys this home, and I think this buyer may not be the right fit for the neighborhood.' No written discriminatory statement is made. Which type of fair housing violation is most likely occurring, and what should the buyer's agent do?
Correct Answer
C) Discriminatory discouragement has likely occurred; the buyer's agent should document the statement and consider filing a fair housing complaint
Discriminatory discouragement — making statements that discourage a person from pursuing a housing opportunity based on a protected class — is prohibited under the Fair Housing Act (42 U.S.C. § 3604(a)), which makes it unlawful to 'otherwise make unavailable or deny' a dwelling based on a protected class. The listing agent's coded language ('not the right fit for the neighborhood') following a showing to an African American buyer is a classic example of discriminatory discouragement based on race. A fair housing violation does not require a written statement. The buyer's agent should document the statement contemporaneously and may need to file a complaint with HUD or the Utah Division of Real Estate.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
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