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Practice Of Real EstateFair_housingEASY

A prospective buyer named James visits a real estate office in Mankato, Minnesota and expresses interest in purchasing a home. The agent at the desk tells James that homes in a particular neighborhood 'might not be the right fit' for him and steers him toward a different part of town, based on James's race. Under the Minnesota Human Rights Act, this practice is best described as which of the following?

Correct Answer

C) Steering

Steering is the illegal practice of guiding prospective buyers or renters toward or away from certain neighborhoods based on their membership in a protected class. Under the Minnesota Human Rights Act (Minn. Stat. Ch. 363A) and the federal Fair Housing Act, steering based on race is an unfair discriminatory practice. The agent's action of directing James away from a neighborhood based on his race is a classic example of racial steering.

Answer Options
A
Blockbusting
B
Redlining
C
Steering
D
Panic selling

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Related Topics & Key Terms

Key Terms:

steeringraceminnesota_human_rights_actdiscriminatory_practices

Related Concepts

Commingling is the illegal act of mixing client funds with a broker's personal or business operating funds, while conversion is the unauthorized use of client funds for the broker's own benefit. Both are serious violations that can result in license revocation.

Commingling is the illegal act of mixing client trust funds with a broker's personal or business operating funds; conversion is the misappropriation of those funds.

Continuing education (CE) refers to the ongoing coursework that licensed real estate professionals must complete during each renewal cycle to maintain an active license. CE ensures agents stay current with changes in laws, regulations, and industry practices.

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