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Practice Of Real EstateFair_housingHARD

A Kansas real estate agent represents a seller whose property is in a neighborhood with a significant population of a particular ethnic ancestry. The agent, without the seller's knowledge, begins telling prospective buyers that 'the neighborhood is changing' and that property values may be affected, with the intent of inducing a quick sale. The agent's statements are motivated by the buyers' and neighbors' ancestry. Under Kansas fair housing law, this conduct is best classified as:

Correct Answer

C) Blockbusting, because the agent is using ancestry-based fears to induce the seller to sell quickly.

The agent's conduct constitutes blockbusting (also called panic peddling) under the Kansas Act Against Discrimination (K.S.A. 44-1015 et seq.). Blockbusting involves inducing or attempting to induce a property owner to sell by representing that persons of a protected class (here, a particular ancestry — a Kansas-specific protected class) are moving into or are present in the neighborhood, thereby implying a negative effect on property values. This is prohibited under both federal and Kansas fair housing law.

Answer Options
A
Steering, because the agent is directing buyers based on ancestry.
B
Redlining, because the agent is associating a neighborhood with a particular group.
C
Blockbusting, because the agent is using ancestry-based fears to induce the seller to sell quickly.
D
Puffery, because statements about neighborhood change are subjective opinions not governed by fair housing law.

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Related Topics & Key Terms

Key Terms:

blockbustingancestrypanic_peddlingprohibited_practicesexpert_trap

Related Concepts

Advertising regulations govern how real estate licensees may market properties and services, requiring truthful, non-deceptive advertising that includes proper identification of the brokerage.

Antitrust violations in real estate occur when competing brokerages or agents engage in practices that restrain trade, reduce competition, or harm consumers through collusion. These violations are governed by the Sherman Antitrust Act and can result in severe penalties.

Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.

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