Fair HousingIntermediateCalifornia Exam

'Blockbusting' is best defined as:

ABuying multiple properties on one block, per standard fair housing compliance practice
BInducing homeowners to sell by exploiting fear of demographic changesCorrect
CDeveloping a city block for commercial use, under federal and California fair housing law
DA bulk sale of foreclosed properties, as defined under the Fair Employment and Housing Act

Why Inducing homeowners to sell by exploiting fear of demographic changes Is Correct

Answer B: Inducing homeowners to sell by exploiting fear of demographic changes

Blockbusting (panic selling) is an illegal practice of inducing homeowners to sell by suggesting that minorities or other groups are moving into the area, thereby lowering property values. Blockbusting violates Section 804(e) of the Fair Housing Act, which prohibits inducing sales by representing that protected-class members are moving into the area.

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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