California Real Estate Broker ExaminationReal Estate PracticeEasy
A licensed California real estate broker manages an apartment building for an owner. The owner instructs the broker to only lease units to tenants who have lived in California for at least five years. How should the broker respond to this instruction?
- AProceed with leasing, but prioritize tenants who meet the owner's criteria without explicitly advertising it.
- BInform the owner that the instruction violates fair housing laws and refuse to comply.
- CComply with the owner's request, as brokers must follow all lawful instructions from their clients.
- DSuggest the owner obtain legal counsel to determine the legality of the request.
Show answer & explanationAnswer & explanation
Correct answer: B. Inform the owner that the instruction violates fair housing laws and refuse to comply.
Brokers have a legal and ethical obligation to uphold fair housing laws. Discriminating based on residency duration can be considered a form of national origin discrimination under fair housing statutes.
Why the other options are wrong
- A. Prioritizing tenants based on discriminatory criteria, even without explicit advertising, still constitutes a violation of fair housing laws.
- C. This instruction is unlawful, so the broker cannot comply.
- D. While legal counsel is always an option, the broker should already know that such an instruction is discriminatory and unlawful.
Fair Housing Laws (Broker Duty)
Real estate brokers must comply with all federal and state fair housing laws, which prohibit discrimination in housing based on protected characteristics.
- Prohibits discrimination in housing transactions.
- Covers protected classes like race, religion, national origin, sex, familial status, and disability.
- Brokers cannot follow unlawful discriminatory instructions from clients.
Memory trick: Fair housing means brokers must always steer clear of discrimination, even when a client asks.