Agency
A Massachusetts seller tells their agent that they will not sell to a particular ethnic group. The agent must:
AFollow the seller's instructions as the principal
BRefuse to implement the discriminatory instruction and inform the seller it violates fair housing law✓ Correct
CDisclose the instruction to prospective buyers
DReport the seller to the police
Explanation
An agent cannot follow discriminatory instructions from their principal—this would violate fair housing laws. The agent must refuse, educate the seller about fair housing obligations, and if the seller persists, the agent should withdraw from the listing.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
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