A managing broker in Vancouver, Washington discovers that one of her brokers, Daniel, has been informally telling prospective buyers that certain apartment complexes 'tend to attract a certain crowd' when those buyers mention they are gay, effectively discouraging them from applying at those properties. The managing broker has not reported this to the DOL. Under Washington law, which of the following best describes the managing broker's potential liability?
Correct Answer
B) The managing broker may face DOL disciplinary action under RCW 18.85 for failing to supervise Daniel, in addition to potential liability under RCW 49.60.
Under RCW 18.85, managing brokers have a supervisory duty over the brokers affiliated with their firm. Failure to supervise and address known fair housing violations by a supervised broker can expose the managing broker to DOL disciplinary action. Additionally, the managing broker's awareness of ongoing discriminatory conduct — and failure to act — could create liability under RCW 49.60. Washington's statutory framework holds supervising licensees accountable for the conduct of those they supervise.
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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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