Texas Real Estate Sales Agent ExamReal Estate PracticeHard
A real estate agent is representing a seller who insists on only showing their property to 'families with traditional values.' The agent knows this is discriminatory but fears losing the listing if they confront the seller. What is the agent's ethical obligation in this situation according to the Canons of Professional Ethics and Conduct for Texas real estate licensees?
- AComply with the seller's request to maintain the listing.
- BShow the property to all interested parties but subtly discourage 'non-traditional' families.
- CRefer the seller to another agent who might be willing to accommodate the request.
- DAdvise the seller that the request is discriminatory and refuse to comply.
Show answer & explanationAnswer & explanation
Correct answer: D. Advise the seller that the request is discriminatory and refuse to comply.
The Canons of Professional Ethics and Conduct, specifically the duty of Fidelity and the obligation to treat all parties honestly, prohibit a licensee from participating in discriminatory practices. The agent must advise the seller that the request is illegal and refuse to comply, even if it means losing the listing.
Why the other options are wrong
- A. Complying with a discriminatory request is a violation of fair housing laws and ethical canons.
- B. Subtly discouraging protected classes is still discriminatory and unethical, violating fair housing laws.
- C. Referring the seller to another agent who might comply is still facilitating discrimination and is unethical.
Ethical Obligation - Discriminatory Instructions
A Texas real estate licensee has an ethical and legal obligation to refuse discriminatory instructions from a client, advise the client of the illegality, and terminate the relationship if the client insists on discrimination.
- Upholding fair housing laws is paramount.
- Duty of Fidelity does not override fair housing.
- Licensees must educate clients on legal requirements.
Memory trick: Discrimination's a no, ethics say go!