Fair Housing
Under the Fair Housing Act, a real estate professional who provides different information or services to buyers based on their race is guilty of:
ARedlining
BSteering✓ Correct
CBlockbusting
DCommingling
Explanation
Steering is the illegal practice of directing buyers or renters to or away from specific neighborhoods, housing types, or services based on their protected class characteristics such as race. Providing different levels of service based on race violates 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.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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