California Real Estate Practice Exam

Is a real estate broker in violation of the law by disclosing the race of a buyer to the seller upon request?

1. No, because agent is required to disclose all matters to his principal.

2. No, as this has not been made the subject matter for specific legislation.

3. Yes, because of specific federal and state legislation.

4. Yes, this is a violation of current civil rights legislation per state attorney general's office.

The correct answer is: No, because agent is required to disclose all matters to his principal.

The correct answer highlights that a real estate broker could be in violation of the law by disclosing the race of a buyer to the seller, as such disclosure would be contrary to principles of fair housing and discrimination laws. The context of this question lies within the framework of federal and state laws, which strive to eliminate discriminatory practices in housing. The Fair Housing Act, along with various state civil rights laws, specifically prohibits discrimination based on race and other protected characteristics, emphasizing that individuals should be treated equitably in all real estate transactions. Such laws are designed to create a level playing field for all buyers and promote diversity in housing. While the first answer provided might suggest that a broker must share relevant information with their principal, the specific nature of race as a protected characteristic means that disclosing this information could lead to discriminatory practices. Thus, a broker's obligation to their principal does not extend to sharing information that could facilitate illegal discrimination. In summary, the reason the correct answer emphasizes the violation is that this disclosure does not align with the principles of non-discrimination established by both federal and state law, marking it as illegal and unethical conduct in real estate transactions.