Steering
Definition
The illegal practice of directing homebuyers toward or away from certain neighborhoods based on race, color, religion, sex, national origin, disability, or familial status.
Example
An agent only shows Hispanic buyers homes in predominantly Hispanic neighborhoods while showing white buyers homes throughout the city. This is illegal steering based on national origin, even if the agent claims they were trying to make buyers feel "comfortable."
Exam Tip
Steering is ALWAYS illegal, even if the buyer requests it. If a buyer says "I only want to live near people like me," the agent must show ALL suitable properties regardless. Any form of directing based on protected class = steering.
Related Buyer Rep Terms
Buyer Broker Duties
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
Buyer Representation Disclosure
A form that explains to the buyer the types of agency relationships available and the duties associated with each, required to be provided before substantive discussions begin.
Cooperative Compensation
The practice of a listing broker sharing commission with a buyer's broker, historically offered through the MLS but now prohibited from MLS display under the 2024 NAR settlement.
Buyer Consultation
An initial meeting between a buyer and agent to discuss the buyer's needs, explain agency relationships, review representation agreements, and establish expectations for the home-buying process.
Buyer Loyalty Obligation
The duty of a buyer's agent to act solely in the buyer's best interest, avoiding any conflicts of interest and putting the buyer's needs above the agent's own financial interests.
Termination of Buyer Agency Agreement
The legal ending of a buyer representation agreement, which can occur through expiration, mutual consent, breach, or specific termination provisions outlined in the contract.
Frequently Asked Questions
Test Your Buyer Rep Knowledge
Practice with exam-style questions to make sure you can apply Steering and other buyer rep concepts.