If a sales agent violates the Texas Fair Housing Act, what may happen to their sponsoring broker?

The correct answer is that the broker may not be penalized if unaware of actions. In the context of the Texas Fair Housing Act, a broker generally has a responsibility to supervise their sales agents. However, if a broker can demonstrate that they had no knowledge of the discriminatory actions taken by an agent, they typically may not be held liable for those actions.

This principle is founded on the concept of vicarious liability, which holds employers accountable for their employees' actions, but it recognizes that liability may not apply if the employer was not aware of the wrongdoing and did not condone it. The Fair Housing Act provides protection against discrimination, and while brokers are encouraged to maintain oversight of their agents to prevent violations, ignorance of the actions does afford them a degree of protection under the law.

Awareness and proper training can mitigate risks, but if a broker has taken steps to create an environment that promotes fair housing and remains unaware of violations, they could potentially avoid penalties.