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Why should a broker avoid following a homeowner's discriminatory preferences for tenants?

  1. It could lead to property devaluation

  2. It violates Federal Fair Housing regulations

  3. It might discourage potential tenants

  4. It can result in lower rental prices

The correct answer is: It violates Federal Fair Housing regulations

A broker should avoid following a homeowner's discriminatory preferences for tenants primarily because it violates Federal Fair Housing regulations. These regulations are designed to promote equality and prohibit discrimination based on specific protected classes, including race, color, religion, sex, national origin, familial status, and disability. By adhering to discriminatory preferences, a broker not only undermines the values of fairness and equality embedded in these laws but also risks legal repercussions, including fines and loss of license. This adherence can perpetuate systemic discrimination and social inequities, which the Fair Housing Act seeks to address. Understanding this principle is vital for brokers who operate within the real estate market, ensuring that they foster an inclusive environment and promote fair access to housing for all, irrespective of their background. Compliance with fair housing laws not only protects the interests of the broker and their clients but also contributes to a healthier community dynamic overall.