New York Real Estate Salesperson ExaminationNew York State Specific Laws and RegulationsHard
A New York real estate broker is approached by a client who wants to sell a residential property. The client indicates that they do not want the broker to show the property to any individuals of a particular religious affiliation. What is the broker's immediate ethical and legal obligation?
- AAccept the listing but discreetly ignore the client's discriminatory instruction.
- BFollow the client's instruction, as the broker's primary duty is loyalty to the client.
- CInform the client that such a restriction is illegal and refuse to accept the discriminatory instruction.
- DAdvise the client that they can sell the property themselves if they wish to impose such restrictions.
Show answer & explanationAnswer & explanation
Correct answer: C. Inform the client that such a restriction is illegal and refuse to accept the discriminatory instruction.
Under both federal Fair Housing Act and New York's Human Rights Law, discrimination based on religion is strictly prohibited. A real estate licensee has an affirmative duty to uphold fair housing laws and cannot participate in or accept discriminatory instructions from a client. The broker must inform the client of the illegality and refuse the instruction.
Why the other options are wrong
- A. Accepting the listing with such an instruction, even if intending to ignore it, puts the broker at risk and compromises ethical standards.
- B. The duty of loyalty to a client does not supersede the legal and ethical obligation to abide by fair housing laws. Discriminatory instructions must be refused.
- D. While technically true, advising the client to discriminate themselves is still facilitating discrimination and not fulfilling the broker's duty to refuse the instruction.
Refusal of Discriminatory Instructions
Real estate licensees have a legal and ethical obligation to refuse any discriminatory instructions from a client, as participation in or facilitation of discrimination violates fair housing laws.
- Applies to all protected classes (race, religion, etc.).
- Licensees cannot accept or comply with such requests.
- Refusal protects both the licensee and the public.
Memory trick: No discrimination, no excuses, no participation.