Module 5 of 13 / National concepts

Brokerage practice and fair housing

Serve clients competently, define compensation clearly and recognize discrimination and risk.

Outline allocation: 10 of 80 scored questions. Reviewed October 15, 2026.

What you will learn

Compare brokerage agreements.
Apply fair housing protections in realistic situations.
Use supervision and documentation to manage risk.

Listings, representation and negotiated fees

An exclusive right-to-sell listing generally entitles the broker to compensation if the property sells during the term under the agreed conditions, including many owner-found sales. An exclusive agency listing generally reserves an owner-sale exception. An open listing is nonexclusive and typically rewards the broker who produces the buyer under its terms. A net listing creates a conflict by letting compensation depend on the amount above a seller’s required net. Fees and services are negotiated; there is no government-set standard commission. Source note: California DRE chapters support general concepts only; use the Pennsylvania modules and linked Pennsylvania authorities for state-specific rules.

Work through an example

Two firms cannot agree that neither will accept listings below a common commission rate. Each firm must make independent pricing decisions.

Remember: Read the listing’s compensation trigger; the label alone does not supply every term.

Fair housing decisions and advertising

Federal fair housing law protects race, color, religion, national origin, sex, familial status and disability. State and local protections may be broader. Steering changes choices based on protected characteristics; blockbusting uses discriminatory fear to induce transactions; redlining improperly restricts services by protected neighborhood characteristics. Advertise property features and apply consistent, legitimate criteria. A client’s request does not excuse discrimination. Limited exemptions must not be assumed to authorize discriminatory advertising.

Work through an example

Describe a two-bedroom unit and its amenities, not a preferred religion or a preference against families with children.

Remember: Offer choices based on the consumer’s stated housing needs, not demographic assumptions.

Disability accommodation and public access

A reasonable accommodation changes a rule or service when necessary for a person with a disability to have equal housing opportunity. A reasonable modification changes a physical feature. Assess requests under the applicable housing program and law rather than treating an assistance animal as an ordinary pet. Disability-related information has privacy limits. The ADA also affects places of public accommodation such as brokerage offices; it is not interchangeable with every Fair Housing Act requirement.

Work through an example

An applicant requests an exception to a no-pets policy for an assistance animal. Evaluate the accommodation request rather than automatically charging a pet fee.

Remember: A policy exception and a physical alteration are different tools.

Competence, management and fraud prevention

Accept work within your knowledge or obtain competent assistance. A management agreement defines authority, reporting, budgets, maintenance and collection responsibilities. Trust money requires separate accounting. A license is not authority to give specialized legal, tax, engineering or environmental opinions. Protect personal information and verify wiring instructions through a previously verified channel. Document material communications and follow applicable Do Not Call and privacy rules; a convenient marketing list does not establish permission.

Work through an example

An emailed last-minute change of wiring instructions should trigger verification using a trusted number already on file.

Remember: Supervision, written authority and independent verification prevent avoidable harm.

Check your understanding

Close your notes and explain the rule in your own words. Change one fact in an example: does the answer change? Use topic practice in the study room, then return to any rule you missed.

Practice in the study room →Next unit →

Sources and further reading

California DRE references support general national concepts only. Their California-specific rules are not Pennsylvania law; use the PA sources for state requirements.

Supplemental study only. State rules and transaction details matter; consult the linked official sources for the complete requirements. This lesson provides no prelicensing credit.