Fair HousingIntermediateNorth Carolina Exam

'Blockbusting' is an illegal practice in which brokers:

ARefuse to show properties in certain neighborhoods
BInduce homeowners to sell by exploiting fears about minorities moving into the areaCorrect
CCharge minority buyers higher commissions
DRequire minority applicants to use specific lenders, subject to the usual exceptions

Why Induce homeowners to sell by exploiting fears about minorities moving into the area Is Correct

Answer B: Induce homeowners to sell by exploiting fears about minorities moving into the area

Blockbusting (panic selling) involves inducing homeowners to list or sell by suggesting that the entry of a protected class into the neighborhood will cause property values to decline.

Exam Tip: Fair Housing

Fair Housing questions test both federal (Fair Housing Act of 1968) and state-level protected classes. The federal protected classes are race, color, religion, national origin, sex, familial status, and disability. Many states add additional protections.

Key Fair Housing Terms in This Question

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