Fair HousingIntermediateDelaware Exam

What is 'blockbusting' in real estate?

ABuying distressed properties at below market value
BInducing owners to sell by suggesting that members of a protected class are moving into the areaCorrect
CRedeveloping entire city blocks
DSteering buyers toward specific neighborhoods

Why Inducing owners to sell by suggesting that members of a protected class are moving into the area Is Correct

Answer B: Inducing owners to sell by suggesting that members of a protected class are moving into the area

Blockbusting (panic selling) is the illegal practice of inducing homeowners to sell their properties by suggesting that members of a protected class (often racial minorities) are moving into the area, thereby driving down values.

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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