Fair Housing
What is 'blockbusting' and is it still relevant in Hawaii real estate?
AA. A practice of demolishing old buildings in rapidly developing areas; perfectly legal
BB. The illegal practice of inducing homeowners to sell by exploiting fears that protected class members moving in will lower property values✓ Correct
CC. A legitimate marketing strategy focusing on up-and-coming neighborhoods
DD. A practice of buying multiple properties in a block for development
Explanation
Blockbusting (panic selling) is illegal under the Fair Housing Act. It involves inducing owners to sell by suggesting that members of a protected class are moving in and property values will decline.
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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 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.
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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