Fair Housing
In Michigan, an agent who assumes a buyer from a specific national origin will only want to see homes in certain neighborhoods is:
ABeing efficient and saving the buyer time
BPotentially engaging in steering by making assumptions based on protected class characteristics✓ Correct
CComplying with the buyer's presumed preferences
DActing in accordance with Michigan fair housing guidelines
Explanation
Assuming what neighborhoods a buyer would prefer based on national origin (or any protected class) and limiting showings accordingly is a form of steering. Agents must show all properties that meet the buyer's stated criteria regardless of the buyer's national origin.
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Key Terms to Know
Steering
An 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.
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.
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.
Pre-ApprovalA lender's conditional commitment to loan a specific amount to a borrower, based on verified income, credit, and assets.
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