Fair HousingIntermediateNorth Carolina Exam

Blockbusting (panic selling) in NC neighborhoods violates the Fair Housing Act because it:

AInflates property values
BUses race (or another protected class) to induce owners to sell by predicting neighborhood changeCorrect
CRestricts the number of homes available for purchase, which most practitioners would generally accept
DRequires all transactions to use the same broker

Why Uses race (or another protected class) to induce owners to sell by predicting neighborhood change Is Correct

Answer B: Uses race (or another protected class) to induce owners to sell by predicting neighborhood change

Blockbusting is the illegal practice of inducing homeowners to sell by suggesting that people of a protected class are moving into the neighborhood, causing fear of declining property values. It violates the FHA's prohibition on race-based real estate practices.

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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