A property management company operates rental properties in both Seattle and a small rural town in Eastern Washington. The company adopts a uniform statewide policy of refusing all applicants who use housing assistance vouchers. Which of the following statements most accurately describes the legal consequences of this policy?
Correct Answer
C) The policy is unlawful only for properties in Seattle and King County, where local ordinances prohibit source-of-income discrimination
Washington State's RCW 49.60 does not include source of income as a statewide protected class. However, Seattle and King County have enacted local ordinances that specifically prohibit discrimination based on source of income, including housing assistance vouchers. Therefore, the company's uniform voucher-rejection policy is unlawful for its properties located within Seattle and King County, where local law provides this protection, but it is not necessarily unlawful for properties in areas of Washington State (such as rural Eastern Washington) that do not have such local ordinances. The company must apply different standards based on the jurisdiction where each property is located.
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Related Topics & Key Terms
Key Terms:
Related Concepts
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.
Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.
Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.
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