Fair Housing

A Montana real estate agent who discovers that a comparable sale used in their CMA involved a discriminatory 'gentlemen's agreement' (where minority buyers were steered away) should:

AUse the sale without comment since it is a recorded transaction
BRecognize that discriminatory transactions can distort market data and may need to be investigated or excluded if the price was affected by discrimination✓ Correct
COnly use recent sales without investigating prior sales
DReport the transaction to HUD immediately before using it

Explanation

Comparable sales that may have been affected by discriminatory practices (steering, restrictive covenants) could have distorted values. Appraisers and agents should be aware of and account for such distortions in their market analysis.

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