Fair HousingIntermediateArizona Exam

Blockbusting (panic peddling) is an illegal practice in which:

AA broker refuses to show listings in certain neighborhoods to buyers of particular racial or ethnic backgrounds, directing them only to areas where their group is concentrated
BA broker induces homeowners to sell by implying that protected-class individuals moving in will lower property valuesCorrect
CA lender requires higher down payments or charges higher interest rates from borrowers in minority-majority census tracts regardless of the individual borrower's creditworthiness
DA landlord enforces a no-children policy and refuses to rent to families with children, citing safety concerns about the property's stairs, balconies, or pool area

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

Blockbusting is the illegal practice of inducing owners to sell or rent by exploiting fears that members of a protected class will move into the neighborhood, causing property values to decline.

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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