Fair HousingIntermediateAlaska Exam

An Alaska real estate company that uses a referral network that primarily sends minority buyers to lower-priced neighborhoods may be engaging in:

ALegal market segmentation
BSteering — a form of illegal housing discriminationCorrect
CPermissible buyer preference accommodation
DEfficient matching of buyers to price ranges, in general

Why Steering — a form of illegal housing discrimination Is Correct

Answer B: Steering — a form of illegal housing discrimination

Steering buyers toward or away from neighborhoods based on their protected class characteristics — including race, national origin, or religion — is illegal regardless of whether it is based on buyer income or other pretextual reasoning. Systematic direction of minority buyers away from higher-priced areas constitutes illegal steering.

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

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