Practice of Real Estate
This topic covers fair housing, prohibited discriminatory practices, and the professional duties licensees owe to clients and the public.
Fair Housing and Protected Classes
The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status (households with children under 18 and pregnant persons), and disability. Prohibited practices include steering, blockbusting (inducing panic sales), and redlining. State and local laws may add protected classes such as source of income or sexual orientation.
Professional Duties and Trust Funds
Licensees must deal honestly, advertise truthfully, and handle client funds properly. Earnest money must be held in a broker's escrow account and never commingled with personal funds. Brokers supervise affiliated salespersons and are responsible for compliance with license law and fair housing requirements.