Fair Housing

Blockbusting is illegal because it:

APrevents minority buyers from purchasing in certain neighborhoods
BUses fear of neighborhood change to induce property sales✓ Correct
CRequires lenders to deny loans in certain areas
DRestricts property sales to members of specific groups

Explanation

Blockbusting (panic peddling) is the illegal practice of inducing homeowners to sell by suggesting that the entry of a protected class will cause property values to decline, resulting in panic selling.

Related Michigan Fair Housing Questions

Practice More Michigan Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Michigan Quiz →