Fair HousingIntermediateArizona Exam

Under the Fair Housing Act, 'steering' is an illegal practice in which a real estate agent:

ADeliberately shows buyers properties only in neighborhoods whose current demographic profile matches the buyer's own protected class characteristics

BDirects or guides buyers toward or away from certain neighborhoods based on the racial, religious, or other protected characteristics of the area's residentsCorrect

CAdvises sellers to price their home at a discount to attract multiple competing offers from a diverse pool of buyers in the current market

DDirects buyers toward specific mortgage products based on their credit profile without disclosing that the agent receives a referral fee from the lender

Why Directs or guides buyers toward or away from certain neighborhoods based on the racial, religious, or other protected characteristics of the area's residents Is Correct

Answer B: Directs or guides buyers toward or away from certain neighborhoods based on the racial, religious, or other protected characteristics of the area's residents

Steering is the illegal practice of directing buyers toward or away from specific neighborhoods based on protected class characteristics of those areas' residents. For example, showing only certain neighborhoods to minority buyers, or discouraging them from looking in predominantly white neighborhoods, constitutes illegal steering.

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

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.

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.

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Key Terms to Know

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.

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.

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.

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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Fair Housing Laws Guide

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