Fair Housing
Steering — directing buyers toward or away from neighborhoods based on protected class characteristics — is:
ALegal if the buyer requests neighborhood information
BLegal in Alabama but illegal federally
CIllegal under both federal and Alabama fair housing laws✓ Correct
DOnly illegal in commercial real estate
Explanation
Steering is illegal under the federal Fair Housing Act and is prohibited in Alabama. Steering based on race, religion, national origin, sex, disability, familial status, or color violates fair housing laws regardless of whether the buyer requests it.
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Key Terms to Know
Fair Housing Act
Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
SteeringAn illegal practice where a real estate agent directs buyers toward or away from certain neighborhoods based on the buyer's race, religion, national origin, or other protected characteristics.
RedliningAn illegal practice where lenders or insurers deny services or charge higher rates in certain neighborhoods based on the racial or ethnic composition of those areas.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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