Discriminatory Ad Copy and Off-MLS Listing
Sam takes a 90-day listing on a 3-bedroom ranch at $289,000. The seller, a landlord, instructs Sam to advertise: 'Ideal for young professionals-no children, quiet Christian neighborhood.' The seller also says he will not accept any offer from a buyer using a housing voucher and wants the listing kept off the MLS for two weeks so only 'our kind of people' see it. Sam's brokerage policy requires all listings to be submitted to the MLS within 48 hours unless the seller signs a waiver. The local market is tight, and Sam worries about losing the listing.
1. How should Sam respond to the proposed ad language under fair housing law?
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Sam must refuse to publish the ad as written. The federal Fair Housing Act and Wisconsin's open housing law prohibit advertisements that indicate a preference, limitation, or discrimination based on race, color, religion, sex, disability, familial status, national origin, and additional Wisconsin-protected classes such as marital status, age, ancestry, sexual orientation, and lawful source of income. 'No children' is a familial-status violation. 'Quiet Christian neighborhood' signals religious preference. 'Ideal for young professionals' can imply age or familial-status steering and should be avoided.
Sam should explain the law to the seller, offer neutral copy such as '3-bedroom ranch near parks, shopping, and commuter routes,' and document the refusal. If the seller insists, Sam should decline the listing or seek broker/legal guidance rather than publish it.
2. Can the seller lawfully refuse an offer solely because the buyer uses a housing voucher? What should Sam tell him?
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If Wisconsin law or a local ordinance protects lawful source of income, the seller cannot refuse an offer solely because the buyer uses a housing voucher. Sam should tell the seller to evaluate the offer on objective financial terms-purchase price, financing, down payment, contingencies, and closing date-and not on the source of the buyer's funds.
Even where source-of-income protection is uncertain, a blanket refusal creates fair-housing risk and may violate the brokerage's policy. Sam should not transmit or implement a discriminatory instruction. If the seller directs Sam to reject a buyer for a protected reason, Sam should refuse, document, and involve the managing broker.
3. What are Sam's obligations and risks regarding the off-MLS request and the 48-hour policy?
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The off-MLS request is a business and compliance issue separate from fair housing. Sam must follow the brokerage's 48-hour MLS submission policy; if the seller wants a delay, Sam needs the written waiver the policy allows and the managing broker's approval. A pocket listing is not automatically illegal, but it cannot be used to steer or exclude protected groups, and Sam must still advertise truthfully and include the brokerage name as required by Wisconsin advertising rules.
Sam should explain that off-MLS marketing may reduce exposure and price, document the seller's instructions, and avoid any selective marketing based on protected characteristics. If the seller's motive is to keep out certain buyers, Sam must refuse.