A real estate agent who shows minority buyers only homes in predominantly minority neighborhoods, while showing white buyers homes throughout the city, is engaged in:
Why Steering Is Correct
Answer C: 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
Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
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.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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.
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Related California Questions
- A real estate agent shows a white buyer homes in predominantly white neighborhoods and does not show the same buyer available homes in integrated neighborhoods. This is an example of:Fair Housing
- A real estate broker participates in a 'gentlemen's agreement' with other brokers not to show properties in certain neighborhoods to minority buyers. This practice is:Fair Housing
- An agent who uses a different communication style or provides less information to potential buyers based on their national origin is engaging in:Fair Housing
- A property manager shows only one-bedroom units to a single woman and only two-bedroom units to a married couple without asking about their preferences. This is an example of:Fair Housing
Key Terms to Know
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.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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.
Fair Housing ActFederal 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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