Fair HousingIntermediateCalifornia Exam

Which of the following actions by a real estate agent could constitute a fair housing violation?

AShowing a buyer all available homes in their price range

BOnly showing homes in certain neighborhoods based on the buyer's race or national originCorrect

CDeclining to show a property because the buyer's financing is not in order

DNegotiating a lower price on behalf of a buyer client

Why Only showing homes in certain neighborhoods based on the buyer's race or national origin Is Correct

Answer B: Only showing homes in certain neighborhoods based on the buyer's race or national origin

Limiting or steering a buyer to specific neighborhoods based on race or national origin is both steering and a violation of the Fair Housing Act, regardless of whether the agent thinks they are being helpful. All buyers must be offered equal access to all available housing.

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

Lien

A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.

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.

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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Key Terms to Know