Real Estate · General

Under state law, what is a broker's responsibility regarding fair housing compliance within their brokerage?

Correct answer

The broker must ensure the brokerage and all affiliated licensees comply with fair housing laws — establishing policies, training agents, preventing discriminatory practices (steering, discriminatory advertising), and being accountable for the firm's compliance

  1. A No responsibility
  2. B The broker must ensure the brokerage and all affiliated licensees comply with fair housing laws — establishing policies, training agents, preventing discriminatory practices (steering, discriminatory advertising), and being accountable for the firm's compliance
  3. C Only the agents are responsible
  4. D Fair housing doesn't apply to brokers

Why this is the answer

BROKER FAIR HOUSING RESPONSIBILITY: The broker is responsible for ensuring the BROKERAGE and ALL AFFILIATED LICENSEES comply with fair housing laws. RESPONSIBILITIES: Establish ANTI-DISCRIMINATION POLICIES; TRAIN agents on fair housing requirements; ensure ADVERTISING is non-discriminatory (no discriminatory preferences/limitations, no steering language); prevent prohibited practices (STEERING, BLOCKBUSTING, REDLINING, discriminatory treatment); ensure equal professional service to all; monitor and supervise agents' conduct; be ACCOUNTABLE for the firm's compliance; FEDERAL FAIR HOUSING ACT: Prohibits discrimination based on race, color, religion, national origin, sex, familial status, and disability (plus state-protected classes); applies to the brokerage's practices; SUPERVISION: As the responsible party, the broker can be held liable for the firm's fair housing violations and for failure to ensure compliance; CONSEQUENCES: Fair housing violations carry serious penalties (HUD/DOJ enforcement, lawsuits, license discipline, fines, damages); POLICIES/TRAINING: Brokers maintain fair housing policies, provide training, and ensure consistent compliance; the broker's duty to ensure firm-wide fair housing compliance — through policies, training, supervision, and accountability — is an important broker management responsibility tested on the state exam; the broker leads compliance, not just individual agents.
Source: Real Estate Broker State — Office Management, Fair Housing Compliance

Practice more questions

This question is from our Real Estate License Practice Tests practice test. Take the full practice test to test your knowledge across all General and other topics.

Take the Broker (State Law) practice test →

New to this exam? Our Real Estate exam guide explains the format, scoring, and how to prepare.

Related questions

State-specific guides

Need information for your state? Our state guides cover local requirements, fees, and what to expect on exam day.