A real estate agent contacts homeowners in a neighborhood and suggests they should sell quickly because demographic changes in the area will negatively affect their property values. Several homeowners list their properties at below-market prices as a result. Under Georgia Fair Housing Law, which prohibited practice has the agent engaged in?
Correct Answer
C) Blockbusting, by inducing sales through representations about protected class members entering an area
Under Georgia Fair Housing Law (O.C.G.A. § 8-3-203), blockbusting occurs when a person, for profit, induces or attempts to induce the sale or rental of a dwelling by making representations regarding the entry or prospective entry of members of a protected class into a neighborhood. The agent's conduct—soliciting homeowners and suggesting demographic changes will harm property values to generate listings—is the textbook definition of blockbusting. This practice is illegal regardless of whether the agent explicitly names a protected class.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The National Do Not Call Registry is a federal program administered by the FTC that allows consumers to opt out of receiving unsolicited telemarketing calls, including calls from real estate agents soliciting business.
Brokers in Florida have strict responsibilities for managing escrow accounts, including monthly reconciliation and proper handling of trust funds.
FREC has the authority to impose fines and other disciplinary actions on licensees who violate real estate laws and rules.
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