Florida Real Estate Broker ExaminationReal Estate Brokerage ManagementMedium
A Florida real estate broker is managing a portfolio of rental properties for a client. The client has instructed the broker to only rent to tenants who are married couples with children, as the client believes they are more stable. How should the broker respond to this instruction?
- APolitely decline the instruction and explain that such a policy violates Fair Housing laws.
- BImplement the policy but ensure it is not explicitly advertised to avoid legal issues.
- CFollow the client's instruction, as the broker's primary duty is to obey the principal.
- DSuggest the client adjust the policy to 'married couples' only, to broaden the pool slightly.
Show answer & explanationAnswer & explanation
Correct answer: A. Politely decline the instruction and explain that such a policy violates Fair Housing laws.
The instruction to only rent to 'married couples with children' discriminates based on familial status and marital status, both protected classes under Fair Housing laws. A broker cannot obey an unlawful instruction from a principal; doing so would make the broker liable for discrimination.
Why the other options are wrong
- B. Implementing a discriminatory policy, even if not advertised, is still illegal and makes the broker liable.
- C. Brokers must never obey unlawful instructions; their duty to the law supersedes their duty to the principal in such cases.
- D. Discriminating against single individuals or those without children, even if married, is still a violation of Fair Housing laws.
Unlawful Instructions (Fair Housing)
A real estate broker must never obey an unlawful instruction from a principal, even if it is a direct order. This includes instructions that violate Fair Housing laws.
- Broker's duty to law supersedes duty to principal.
- Discriminatory instructions are unlawful.
- Broker must refuse and educate client.
- Obeying unlawful instructions leads to broker liability.
Memory trick: Law over Loyalty: The law's the boss, even over the client's demands.