Florida Real Estate Broker ExaminationReal Estate Brokerage ManagementEasy
A Florida broker has an exclusive right-of-sale listing agreement with a seller. The seller expresses a desire to discriminate against potential buyers based on their national origin. What is the broker's ethical and legal obligation?
- ATo inform the seller that such discrimination is illegal under the Fair Housing Act and refuse to comply.
- BTo follow the seller's instructions, as the broker's primary duty is to the principal.
- CTo continue marketing the property but subtly discourage buyers of the specified national origin.
- DTo terminate the listing agreement immediately without further discussion.
Show answer & explanationAnswer & explanation
Correct answer: A. To inform the seller that such discrimination is illegal under the Fair Housing Act and refuse to comply.
The Fair Housing Act prohibits discrimination based on national origin. A broker cannot legally or ethically comply with discriminatory instructions from a seller, even under an exclusive listing. The broker must inform the seller of the illegality and refuse to participate in such acts.
Why the other options are wrong
- B. The duty to the principal does not extend to illegal acts. Brokers cannot obey unlawful instructions.
- C. This is a subtle form of discrimination, which is still illegal and unethical.
- D. While termination might be necessary if the seller persists, the immediate obligation is to inform the seller of the illegality and refuse to comply, attempting to correct the situation first.
Fair Housing and Broker's Duty
Real estate brokers have an ethical and legal obligation to comply with the Fair Housing Act and refuse to participate in any discriminatory practices, even if instructed by a client.
- Fair Housing Act prohibits discrimination.
- Broker cannot obey unlawful instructions.
- Must inform client of illegality.
Memory trick: Fair housing is non-negotiable; brokers must be the shield against discrimination, not the sword.