Affiliate Broker Tennessee (TN PSI) National Practice Exam `

What charge could real estate licensee Brian bring against Arnold for using a "Choose Your Neighbor" letter without proper marketing efforts?

1. A charge of agreeing to discriminate by limiting access to the property

2. A charge of misrepresentation of property availability

3. A charge of failing to pay listing fees

4. A charge of violation of state advertising laws

The correct answer is: A charge of agreeing to discriminate by limiting access to the property

The "Choose Your Neighbor" letter is a tool often used in real estate to influence the selection of buyers based on personal preferences or characteristics, which can intersect with fair housing laws. If Arnold used this letter without ensuring that it didn't lead to discrimination against certain groups of people, it suggests that he may be violating laws designed to promote equal housing opportunities. This charge reflects concerns about discriminatory practices that limit access to properties based on personal criteria rather than objective qualifications or equal opportunity. Such actions can foster an environment of favoritism that contravenes fair housing principles, which prohibit discrimination based on race, color, religion, sex, national origin, disability, and familial status. Therefore, bringing this charge indicates a serious violation of ethical standards in real estate practices, emphasizing the importance of maintaining compliance with fair housing laws and ensuring inclusivity in property transactions. The other options either do not apply directly to the situation described or refer to different aspects of real estate practice that are not relevant in this context. For instance, misrepresentation relates to false information about the property, while failing to pay listing fees pertains to financial obligations rather than marketing practices. Violation of state advertising laws may be an issue in some circumstances, but the core concern here is about discrimination,