Property Management
A Mississippi apartment complex owner instructs their property manager to reject all applicants with children. The property manager should:
AFollow the owner's instructions because the owner is the principal
BRefuse to follow the discriminatory instruction and inform the owner it violates fair housing laws✓ Correct
CFollow the instruction only if the complex has fewer than 10 units
DFollow the instruction if the complex is a 55+ community
Explanation
A property manager cannot follow discriminatory instructions from an owner. Rejecting applicants with children (familial status) violates the Fair Housing Act.
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Key Terms to Know
Fair Housing Act
Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate 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.
Earnest MoneyA deposit made by the buyer when submitting a purchase offer, demonstrating serious intent and serving as consideration for the contract.
State-Specific Concepts
DRE Regulation
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