Fair Housing
Under the Fair Housing Act, a real estate agent steering clients away from certain neighborhoods based on racial composition is:
APermissible if the client requests it
BOnly prohibited in federally assisted housing
CIllegal regardless of whether the client requested it✓ Correct
DAcceptable if the agent discloses the neighborhood demographics
Explanation
Steering is illegal under the Fair Housing Act regardless of client preference. Agents cannot direct buyers toward or away from neighborhoods based on protected class characteristics of current residents.
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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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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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