Fair HousingIntermediateAlabama Exam

Under the Fair Housing Act, which of the following is an example of steering?

ARefusing to show homes over a certain price

BDirecting minority buyers away from predominantly white neighborhoodsCorrect

CRequiring a larger down payment from all buyers, under standard practice

DRefusing to rent to anyone with a pet

Why Directing minority buyers away from predominantly white neighborhoods Is Correct

Answer B: Directing minority buyers away from predominantly white neighborhoods

Steering is the illegal practice of directing buyers or renters toward or away from certain neighborhoods based on race, color, religion, sex, national origin, disability, or familial status.

Exam Tip: Fair Housing

Fair Housing questions test both federal (Fair Housing Act of 1968) and state-level protected classes. The federal protected classes are race, color, religion, national origin, sex, familial status, and disability. Many states add additional protections.

Key Fair Housing Terms in This Question

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.

Steering

An 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.

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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.

Steering

An 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.

Redlining

An 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.

Blockbusting

An illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.