FACTS: The broker entered into an Arizona REALTORS® Property Management Agreement with the owner of the residential real property.  The owner has insisted that the broker only lease the property to “families.”  The broker has advised the owner of the potential Fair Housing problems with that position, yet the owner insists.  The owner further claims that the broker, as part of his fiduciary duty, must obey the landlord.

ISSUE: Is the broker obligated to follow the owner?

ANSWER: No.

DISCUSSION:         

Even though one of the requirements of a fiduciary duty is obedience to the client, that obedience does not extend to taking action that could violate the Fair Housing Act.  As such, the broker is not required to follow the owner’s directive and may resign as the property manager.