Fair Housing

What is 'blockbusting' under the Fair Housing Act?

APlacing a property under contract before listing it on the MLS
BInducing property owners to sell by suggesting that people of a protected class are moving into the neighborhood, implying a decline in values✓ Correct
CRefusing to make loans in certain geographic areas based on racial composition
DRefusing to show homes in certain price ranges to minority buyers

Explanation

Blockbusting (panic selling or panic peddling) is the illegal practice of inducing homeowners to sell by exploiting fears about protected classes moving into the neighborhood. It is prohibited by the Fair Housing Act.

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