A real estate salesperson is preparing to list a property. The seller informs the salesperson that they previously had a negative experience with a specific minority group and explicitly states they do not want their property shown to members of that group. The salesperson's supervising broker is out of town. What is the salesperson's most appropriate immediate course of action?
- AAgree to the seller's terms to secure the listing, but discretely show the property to all interested parties.
- BExplain to the seller that while they cannot discriminate, they can subtly discourage certain buyers.
- CInform the seller that such a request is illegal and refuse the listing if the seller persists.
- DPostpone taking the listing until the supervising broker returns to seek their advice.
Show answer & explanationAnswer & explanation
Correct answer: C. Inform the seller that such a request is illegal and refuse the listing if the seller persists.
The seller's request is a direct violation of federal and state fair housing laws (specifically the Fair Housing Act and New York's Human Rights Law), which prohibit discrimination based on protected characteristics. A salesperson cannot comply with such a request. Their immediate and most appropriate action is to inform the seller of the illegality and refuse to take the listing if the seller insists on discriminatory practices, as participating would make the salesperson liable for discrimination. The duty to uphold the law supersedes the desire to secure a listing or the absence of a broker.
Why the other options are wrong
- A. Agreeing to discriminatory terms, even with an intention to ignore them, could still be seen as complicity and is unethical and risky.
- B. Suggesting subtle discrimination is also illegal and unethical; it's a form of active participation in discrimination.
- D. Delaying the listing is insufficient. The salesperson must directly confront the illegal request and be prepared to refuse the listing, regardless of the broker's availability.
Fair Housing Violation (Seller's Request)
A salesperson must refuse any discriminatory instruction from a client, even if it means losing the listing, as compliance would be a violation of fair housing laws.
- Fair Housing Act prohibits discrimination.
- Salesperson cannot comply with unlawful requests.
- Duty to uphold law supersedes client's instructions.
Memory trick: Fair Housing is Law, No Client Can Break!