Fair HousingIntermediateCalifornia Exam

What is 'blockbusting' (panic selling)?

AWhen a developer builds too many units in one area, consistent with federal Fair Housing Act protections, under federal and California fair housing law, consistent with Fair Employment and Housing Act protections

BThe illegal practice of inducing owners to sell by suggesting that persons of a protected class are moving into the neighborhood, causing property values to declineCorrect

CWhen a landlord refuses to rent to families with children, per standard fair housing compliance practice, under federal and California fair housing law, consistent with Fair Employment and Housing Act protections

DThe practice of listing a property below market value, under federal and California fair housing law, under federal and California fair housing law, consistent with Fair Employment and Housing Act protections

Why The illegal practice of inducing owners to sell by suggesting that persons of a protected class are moving into the neighborhood, causing property values to decline Is Correct

Answer B: The illegal practice of inducing owners to sell by suggesting that persons of a protected class are moving into the neighborhood, causing property values to decline

Blockbusting is the illegal practice of inducing homeowners to sell or rent by exploiting fears about racial or ethnic change in the neighborhood. It violates the Fair Housing Act and can result in license revocation and civil liability.

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

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.

Blockbusting

An illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.

People Also Study

Key Terms to Know

Blockbusting

An illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.

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.

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.

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.

State-Specific Concepts

DRE Regulation

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