In Colorado, 'blockbusting' refers to the illegal practice of:
Why B. Inducing homeowners to sell by representing that people of a protected class are moving into the neighborhood, causing property values to decline Is Correct
Answer B: B. Inducing homeowners to sell by representing that people of a protected class are moving into the neighborhood, causing property values to decline
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
A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Fair Housing ActFederal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
SteeringAn 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.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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- Colorado's Fair Housing Act adds which protected class NOT found in the federal Fair Housing Act?Fair Housing
- A Colorado landlord adds a clause to all leases stating 'no children under 12 allowed.' This violates which protected class under the Fair Housing Act?Fair Housing
- Colorado's state fair housing law adds which protected classes NOT covered by the federal Fair Housing Act?Fair Housing
- Under the Fair Housing Act, which of the following is a 'protected class' at the federal level?Fair Housing
- A Colorado buyer signs a buyer agency agreement. The buyer's agent learns the seller is in financial distress and must sell quickly. Must the buyer's agent disclose this to the buyer?Agency
- Which of the following best describes 'blockbusting' as defined under fair housing laws?Colorado License Law
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Key Terms to Know
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.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
Fair Housing ActFederal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.
RedliningAn 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.
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