Fair HousingIntermediateArizona Exam

Blockbusting (panic selling) is best described as:

ABulk purchasing of foreclosed properties in a targeted neighborhood at below-market prices to facilitate investment-driven displacement of existing long-term homeowners

BInducing homeowners to sell by suggesting that protected-class persons are moving into the area, causing property values to declineCorrect

CRefusing to make mortgage loans or provide property insurance in geographic areas with high concentrations of protected-class residents, commonly known as redlining

DAdvertising in publications targeted to a specific religious group that a property is in a neighborhood primarily populated by members of that religion

Why Inducing homeowners to sell by suggesting that protected-class persons are moving into the area, causing property values to decline Is Correct

Answer B: Inducing homeowners to sell by suggesting that protected-class persons are moving into the area, causing property values to decline

Blockbusting is the illegal practice of inducing owners to sell by making representations that persons of a protected class are moving into the neighborhood, implying that property values will fall.

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

Blockbusting

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

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.

People Also Study

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.

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.

Fair Housing Act

Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.

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