Fair HousingIntermediateCalifornia Exam

Which practice involves inducing homeowners to sell by suggesting that people of a protected class are moving into the neighborhood?

ASteering
BRedlining
CBlockbustingCorrect
DPanic peddling

Why Blockbusting Is Correct

Answer C: Blockbusting

Blockbusting (also called panic peddling) is the illegal practice of inducing homeowners to sell by exploiting fears that people of a protected class are moving into the neighborhood, typically to profit from the resulting lower prices. 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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