Fair Housing
Which of the following actions by a real estate agent would be considered illegal under the Fair Housing Act?
AShowing a buyer only properties in their stated price range
BInforming a buyer about schools in the area
CRefusing to show properties in certain neighborhoods to a buyer based on their national origin✓ Correct
DAdvising a seller on appropriate pricing
Explanation
Refusing to show properties to a buyer based on national origin is illegal steering under the Fair Housing Act.
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Key Terms to Know
Fair Housing Act
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.
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.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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