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Practice Of Real EstateFair_housingHARD

A licensed broker in King County represents a seller who instructs the broker to 'only show the property to buyers who are not using government assistance.' The broker complies and turns away a qualified buyer who is pre-approved but whose down payment includes funds from a state housing assistance grant. The buyer files complaints with both the Washington State Human Rights Commission and the Washington State Department of Licensing. Which of the following most accurately describes the potential consequences for the broker?

Correct Answer

B) The broker faces potential WSHRC enforcement for violating RCW 49.60 and DOL discipline for violating RCW 18.85, and following a client's discriminatory instruction is not a valid defense

A licensed broker who follows a client's discriminatory instruction faces dual exposure. First, the Washington State Human Rights Commission (WSHRC) enforces RCW 49.60, which prohibits discrimination in real estate transactions. In King County, source-of-income discrimination (including discrimination based on use of government housing assistance) is prohibited under local ordinance, and the broker's conduct in turning away the buyer implicates this protection. Second, the Washington State Department of Licensing (DOL) has authority under RCW 18.85 to discipline licensees who engage in discriminatory practices or who violate fair housing laws. Critically, a licensee's compliance with a client's discriminatory instruction is not a defense — brokers have an independent legal obligation to comply with fair housing law, and following an unlawful client instruction makes the broker a participant in the discrimination.

Answer Options
A
The broker faces discipline from the DOL only, because the WSHRC investigates landlords, not real estate brokers
B
The broker faces potential WSHRC enforcement for violating RCW 49.60 and DOL discipline for violating RCW 18.85, and following a client's discriminatory instruction is not a valid defense
C
The broker is not liable because the instruction came from the seller, and brokers are shielded from liability when acting on client instructions
D
The broker faces WSHRC enforcement only, because the DOL does not discipline brokers for fair housing violations

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Related Topics & Key Terms

Key Terms:

fair_housingking_countysource_of_incomebroker_liabilitydol_disciplinewshrcdiscriminatory_instructionrcw_18_85

Related Concepts

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.

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