A Maryland real estate agent is hosting an open house for a listed property. A prospective buyer who appears to be of Middle Eastern descent asks about making an offer. The agent tells the buyer that the neighborhood 'tends to attract a certain type of resident' and suggests the buyer look at properties in a different county. Under the Maryland Fair Housing Act, this conduct is best described as which prohibited practice?
Correct Answer
B) Steering, based on national origin
Steering is the illegal practice of directing prospective buyers or tenants toward or away from certain neighborhoods based on a protected characteristic. The agent's suggestion that the buyer look in a different county based on the buyer's apparent national origin constitutes steering, which is prohibited under the Maryland Fair Housing Act (Md. Code Ann., State Gov't § 20-702) and the federal Fair Housing Act.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A trust account, also called an escrow account, is a separate bank account maintained by a broker to hold funds belonging to others, such as earnest money deposits, security deposits, or other client funds.
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.
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