Under the Fair Housing Act, a buyer's broker who advises a minority client to look for homes only in certain neighborhoods based on race is violating the law through:
Why Steering Is Correct
Answer B: Steering
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 financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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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Related Colorado Questions
- A Colorado real estate broker shows buyers only homes in certain neighborhoods based on their race. This practice is called: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
- Under the Fair Housing Act, a lender who requires a higher down payment from buyers purchasing in predominantly minority neighborhoods compared to other neighborhoods is engaging in:Fair Housing
- Under the Fair Housing Act, which of the following is a protected class?Fair Housing
- Which federal law prohibits discriminatory lending practices based on protected class characteristics?Finance
- A Colorado broker who consistently suggests that buyers of a certain ethnicity should look in specific neighborhoods is practicing:Agency
Key Terms to Know
Federal 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.
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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