Agency
A NH agent who is marketing a property must avoid making statements about the racial or ethnic composition of the surrounding neighborhood because:
AIt is acceptable to describe demographics objectively
BSuch statements constitute illegal steering and discriminatory marketing under the Fair Housing Act✓ Correct
COnly government agents are prohibited from such statements
DIt is only prohibited in writing, not verbally
Explanation
Making statements about the racial or ethnic composition of a neighborhood to buyers — whether positive or negative from any perspective — constitutes illegal steering and discriminatory marketing 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.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
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