Fair Housing
Under the Fair Housing Act, a real estate agent who represents only white clients and refuses to work with minority buyers would be committing:
AA permissible business choice
BIllegal race discrimination in real estate services✓ Correct
CA violation of state law only
DAn ethical violation but not a legal one
Explanation
The Fair Housing Act prohibits discrimination in the provision of real estate services based on race and other protected classes. A real estate agent who refuses to work with minority clients is violating federal law and is subject to HUD complaints, DOJ referrals, and private lawsuits.
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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.
LienA financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
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.
BlockbustingAn illegal practice of inducing homeowners to sell by claiming that the entry of minority groups will lower property values.
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