Salesperson Elena is a buyer's agent. Her buyer client, David, informs her that he would never purchase a home in a neighborhood with a high concentration of a particular ethnic group. Elena knows that steering based on such preferences violates fair housing law. However, David insists Elena honor his preferences. Under Virginia agency law, what is Elena's CORRECT course of action?
Correct Answer
B) Elena must refuse to honor the discriminatory preference and may terminate the representation if David insists
Under Va. Code § 36-96.1 et seq. (Virginia Fair Housing Law) and Va. Code § 54.1-2131, a licensee's duty of obedience to a client does not extend to following unlawful instructions. Steering clients based on the racial or ethnic composition of a neighborhood is a violation of both the Virginia Fair Housing Law and the federal Fair Housing Act. Elena must refuse to honor the discriminatory request and may terminate the representation agreement if David insists on the illegal conduct.
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Related Topics & Key Terms
Key Terms:
Related Concepts
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
A situation where a single agent or brokerage represents both the buyer and the seller in the same real estate transaction.
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