Fair Housing
A real estate company's policy of assigning agents to clients based on the client's or neighborhood's racial makeup constitutes:
AAppropriate cultural sensitivity
BRacial steering and a Fair Housing Act violation✓ Correct
CAcceptable matching based on client preference
DA non-discriminatory business practice if documented
Explanation
Assigning agents based on race—sending Black agents to Black clients or White agents to White clients—is racial steering and violates the Fair Housing Act. All clients should have equal access to all available agents and properties regardless of race.
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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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
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