Fair HousingIntermediateAlaska Exam

Blockbusting is the illegal practice of:

ABuying all available properties in a neighborhood to control prices
BInducing property owners to sell by suggesting a protected class group is moving into the areaCorrect
CRefusing to lend in certain geographic areas based on racial composition
DAdvertising properties only in publications read by specific ethnic groups, under this approach

Why Inducing property owners to sell by suggesting a protected class group is moving into the area Is Correct

Answer B: Inducing property owners to sell by suggesting a protected class group is moving into the area

Blockbusting (panic selling or panic peddling) involves attempting to induce owners to sell by suggesting that persons of a protected class are moving into the neighborhood, implying this will cause property values to decline. This is illegal under the Fair Housing Act.

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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