Blockbusting (panic peddling) is an illegal practice in which:
Why A broker induces homeowners to sell by implying that protected-class individuals moving in will lower property values Is Correct
Answer B: A broker induces homeowners to sell by implying that protected-class individuals moving in will lower property values
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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Key Terms to Know
An illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
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State-Specific Concepts
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