Fair HousingIntermediateArizona Exam

Blockbusting (panic peddling) is an illegal practice that involves:

ARefusing to show available properties in certain neighborhoods to prospective buyers based on their protected class membership or perceived neighborhood preferences

BInducing owners to sell by making representations about the entry of protected classes into the neighborhoodCorrect

CIncluding racially or ethnically restrictive covenants in deeds or other property instruments that purport to limit ownership or occupancy to members of certain groups

DCharging members of protected classes higher monthly rents than similarly situated tenants who are not members of a protected class in the same rental housing development

Why Inducing owners to sell by making representations about the entry of protected classes into the neighborhood Is Correct

Answer B: Inducing owners to sell by making representations about the entry of protected classes into the neighborhood

Blockbusting is the illegal practice of inducing homeowners to sell by suggesting that the entry of members of a protected class into the neighborhood will cause 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

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

Blockbusting

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

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Key Terms to Know

Blockbusting

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

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

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.

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