Fair HousingIntermediateCalifornia Exam

Blockbusting is an illegal practice in which a real estate agent:

ALists a property below market value to generate multiple offers, as defined under the Fair Employment and Housing Act
BInduces homeowners to sell by suggesting that the entry of a minority group will cause property values to declineCorrect
CRefuses to show properties in certain price ranges to qualified buyers, consistent with federal Fair Housing Act protections
DAdvertises a property exclusively in minority-language publications, per standard fair housing compliance practice

Why Induces homeowners to sell by suggesting that the entry of a minority group will cause property values to decline Is Correct

Answer B: Induces homeowners to sell by suggesting that the entry of a minority group will cause property values to decline

Blockbusting (also called panic selling or panic peddling) is an illegal fair housing violation where agents manipulate homeowners into selling by exploiting fears about neighborhood demographic changes. It violates the Fair Housing Act.

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

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