Fair Housing
Under the Fair Housing Act, 'blockbusting' (also called 'panic selling') is:
ALegal if the real estate agent has an honest belief that property values will decline
BThe illegal practice of inducing homeowners to sell by suggesting that persons of a protected class are moving into the neighborhood, which would depress values✓ Correct
CLegal if no specific protected class is mentioned
DOnly illegal if the agent profits from the induced sales
Explanation
Blockbusting is the illegal practice of inducing property owners to sell (or rent) by making representations about the entry or prospective entry of protected class members into the neighborhood, combined with suggestions that property values will decline or crime will increase. It is unlawful under the Fair Housing Act regardless of whether the agent profits.
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