Fair HousingIntermediateCalifornia Exam

Blockbusting is the illegal practice of:

ARefusing to sell to buyers of a certain race, per standard fair housing compliance practice
BInducing panic selling by suggesting that minorities are moving into a neighborhoodCorrect
CLending only in certain neighborhoods, under federal and California fair housing law
DAdvertising properties only to certain groups, as defined under the Fair Employment and Housing Act

Why Inducing panic selling by suggesting that minorities are moving into a neighborhood Is Correct

Answer B: Inducing panic selling by suggesting that minorities are moving into a neighborhood

Blockbusting (panic peddling) is the illegal practice of inducing homeowners to sell by suggesting that people of a protected class are moving into the neighborhood, implying property values will fall. 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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