California Real Estate Practice Exam

A broker suggested to his sales staff that they seek new listings in an area where minorities have recently begun to move into. He also suggested that they take listings only from white owners, since they would most likely be sellers due to the fact that the minorities are "moving in." Regarding two possible areas of concern, (1) instructions to his sales staff and (2) his discrimination regarding their seeking of listings from whites, the broker is in violation of the Fair Housing Act (guilty of discrimination) as follows:

1. no violation

2. regarding (1) and (2)

3. regarding (1), not (2)

4. regarding (2), not (1)

The correct answer is: no violation

The correct understanding of this scenario hinges on the principles of the Fair Housing Act, which prohibits discrimination in housing based on race, color, religion, sex, handicap, familial status, or national origin. In this case, the broker's suggestion to his sales staff to focus exclusively on listings from white owners while encouraging them to seek new listings where minorities are moving constitutes a clear violation of this legislation. When examining the broker's instructions to his staff, the directive to seek listings only from white owners inherently suggests a discriminatory practice that favors one race over another. Such guidance not only violates the underlying ethos of the Fair Housing Act but also perpetuates systemic discrimination by implying that minority homeowners would not be valid or desirable sellers, which is unfounded and prejudicial. The discriminatory nature of the broker's approach to listing properties is problematic on both counts—his instructions and the decision to limit who can list a property based solely on the seller's race. The help of the Fair Housing Act is to ensure equal opportunity in housing, and any practice that attempts to segregate the market by race violates this principle. Thus, the broker's behavior clearly aligns with discrimination as defined by the Fair Housing Act in both aspects mentioned. This is why the assertion that there is "