Question 57

A listing salesperson should refuse the listing.

If a seller does not want to sell a property to persons of a particular race, the listing salesperson should refuse the listing in compliance with the Federal Fair Housing Act, which prohibits discrimination based on race. Accepting such a listing would violate both ethical standards and legal obligations.

A) refuse the listing

This option is correct because the Federal Fair Housing Act prohibits discrimination based on race, and accepting a listing with such discriminatory intentions would be illegal. By refusing the listing, the salesperson upholds the law and promotes fair housing practices.

B) list the property if it is a one-to-four-family dwelling

This option is incorrect as the Federal Fair Housing Act applies to all housing transactions, including one-to-four-family dwellings. Listing a property under the condition that it will not be sold to persons of a particular race would not exempt the listing agent from legal repercussions.

C) notify the listing broker of the seller's request

While notifying the listing broker may seem like a responsible action, it does not address the legal and ethical implications of the seller's discriminatory request. Simply informing the broker does not absolve the salesperson from the responsibility to refuse the discriminatory listing.

D) accept the fiduciary duty to follow the instructions of the client

This option is incorrect because fiduciary duty does not permit a salesperson to comply with discriminatory practices. Accepting such instructions would violate the law and ethical standards, making it imperative for the salesperson to refuse the listing instead.

Conclusion

Refusing the listing is the only appropriate action for the listing salesperson under the Federal Fair Housing Act, as it prevents participation in discriminatory practices. All other options fail to recognize the legal obligations imposed by the Act, ultimately leading to potential legal consequences and ethical violations. The commitment to fair housing must take precedence over any client instructions that contradict these principles.