Fair Housing

Which of the following is an example of 'blockbusting'?

ARenovating a neighborhood to attract new buyers
BInducing homeowners to sell by warning them that people of a certain race are moving into the neighborhood✓ Correct
CRefusing to make loans in certain neighborhoods
DRequiring higher security deposits from minority tenants

Explanation

Blockbusting (also called panic peddling) is the illegal practice of inducing owners to sell their properties by exploiting fears that members of a protected class are moving into the area. It violates the Fair Housing Act.

Related Alabama Fair Housing Questions

Practice More Alabama Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Alabama Quiz →