Practice of Real Estate
This topic covers fair housing, listing types, trust fund handling, and the professional duties licensees owe.
Fair Housing and Prohibited Practices
The federal Fair Housing Act prohibits discrimination based on race, color, religion, sex, national origin, familial status, and disability. Prohibited practices include steering, blockbusting, and redlining (denying loans or insurance in certain areas). Licensees must give equal service and use inclusive advertising.
Listings and Trust Funds
An open listing pays only the broker who procures the buyer, while an exclusive-right-to-sell listing pays the listing broker regardless of who sells. Client funds such as earnest money must be held in a trust account and never commingled with personal funds. Brokers supervise affiliated licensees and are responsible for compliance.