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Practice Of Real EstateFair HousingMEDIUM

A real estate agent who directs buyers toward or away from certain neighborhoods based on their race or religion is engaging in which illegal practice?

Correct Answer

B) Steering — directing buyers based on protected class characteristics

Steering is the illegal practice of directing buyers or renters toward or away from specific neighborhoods based on protected class characteristics such as race, religion, or national origin. Steering violates the federal Fair Housing Act and Delaware fair housing law. It differs from redlining (denying services based on area demographics) and blockbusting (inducing panic selling by suggesting demographic changes will lower property values).

Answer Options
A
Redlining — denying services in certain areas based on demographics
B
Steering — directing buyers based on protected class characteristics
C
Blockbusting — inducing owners to sell by exploiting fears about demographic change
D
Price-fixing — colluding with other agents to set commission rates

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Related Topics & Key Terms

Related Topics:

blockbustingredliningDelaware Division of Human RelationsHUD complaint process

Key Terms:

steeringfair housingprotected classneighborhooddiscrimination

Related Concepts

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.

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