Fair Housing

Under the Fair Housing Act, which of the following is an example of illegal 'blockbusting'?

ARefusing to show homes in certain neighborhoods to buyers of any background
BTelling homeowners that members of a minority group are moving into the neighborhood to induce panic selling at below-market prices✓ Correct
CRequiring larger security deposits from all tenants regardless of protected class
DAdvertising rental properties only in English-language newspapers in a bilingual community

Explanation

Blockbusting — also called panic peddling — is the illegal practice of inducing homeowners to sell by implying that entry of a protected class into the neighborhood will cause property values to decline or neighborhood character to change. Blockbusters buy properties at depressed prices and resell at a profit, profiting from manufactured fear and racial change. It is prohibited by the Fair Housing Act and Pennsylvania's PHRA, and agents are subject to civil penalties and loss of license.

Related Pennsylvania Fair Housing Questions

Practice More Pennsylvania Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Pennsylvania Quiz →