Steering in Texas real estate is:
Correct Answer
B) A violation of fair housing laws
Steering based on protected class is illegal under fair housing laws.
Why This Is the Correct Answer
B is correct because steering based on protected class characteristics is illegal under fair housing laws at both federal and state levels. These laws prohibit discrimination in housing based on race, color, religion, sex, disability, familial status, or national origin.
Why the Other Options Are Wrong
Option A: Legal if requested by clients
A is incorrect because even if clients request steering, agents cannot legally comply. Fair housing laws place the responsibility on license holders to prevent discrimination, regardless of client preferences or requests.
Option C: Only illegal in commercial transactions
C is incorrect because steering is illegal in both residential and commercial real estate transactions. The prohibition against discrimination in housing applies across all property types.
Option D: Permitted for safety reasons
D is incorrect because 'safety reasons' cannot be used as a justification for steering. This is a common attempt to disguise discriminatory practices, but legitimate safety concerns should be addressed through factual information, not steering based on protected class.
Deep Analysis of This Practice Of Real Estate Question
Steering is a fundamental concept in fair housing that every Texas real estate professional must understand. This question tests your knowledge of illegal practices that can lead to discrimination in housing. Steering occurs when real estate agents direct potential buyers or renters toward or away from certain neighborhoods based on protected class characteristics rather than the client's actual preferences. In Texas, as in most states, this practice is prohibited under fair housing laws. The correct answer is B because steering is considered a violation of fair housing laws regardless of whether it's requested by clients (A), occurs in residential or commercial transactions (C), or is claimed to be for safety reasons (D). The challenge in this question lies in understanding that steering is illegal in all contexts, not just commercial transactions, and that client requests for steering do not make it legal. This concept connects to broader knowledge of fair housing protections, ethical practices, and potential legal consequences for license violations.
Background Knowledge for Practice Of Real Estate
Fair housing laws originated from the federal Fair Housing Act of 1968, which prohibits discrimination in housing based on protected classes. Texas has additional fair housing statutes that reinforce these protections. Steering is considered a 'steering' practice because agents attempt to guide clients toward or away from certain areas based on discriminatory factors rather than client preferences. This practice violates the principle that housing opportunities should be available to all without discrimination based on protected characteristics. Violations can result in license suspension, fines, and potential civil lawsuits.
Memory Technique
acronymSTOP S - Steering based on protected class T - Targeting certain neighborhoods O - Opposing fair housing principles P - Prohibited by law
When encountering questions about steering practices, remember STOP to remind yourself that steering is prohibited regardless of circumstances.
Exam Tip for Practice Of Real Estate
For fair housing questions, remember that any practice that limits housing choices based on protected classes is illegal. Look for language that suggests directing clients based on characteristics rather than legitimate criteria.
Real World Application in Practice Of Real Estate
A real estate agent in Austin shows homes to a young Hispanic family. When they mention wanting to live in a diverse neighborhood, the agent suggests they would be 'more comfortable' in a specific suburb known for its Hispanic population. The agent never shows them homes in a predominantly Anglo neighborhood that meets their criteria. This is steering because the agent is directing the family based on their perceived ethnicity rather than their actual preferences, needs, or financial qualifications. Such behavior violates fair housing laws and could result in disciplinary action against the agent's license.
Common Mistakes to Avoid on Practice Of Real Estate Questions
- •Believing that steering is only illegal in residential transactions
- •Assuming that client requests for steering make it permissible
- •Confusing steering with providing factual information about neighborhoods
- •Thinking that safety concerns justify steering practices
Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Violating fair housing laws can lead to significant penalties, including fines, civil liability, and professional discipline.
Fair housing laws apply to a broad range of activities related to housing, including sale, rental, financing, and advertising.
More Practice Of Real Estate Questions
For a month-to-month tenancy to be legally valid, which must the contract include?
A landlord must give a month-to-month tenant how many days' notice to terminate the tenancy in California (for tenancies less than one year)?
In NYC, a security deposit for residential rentals cannot exceed:
Arizona landlords must return security deposits within:
Is commingling legal in Illinois?
People Also Study
Buyer Representation Agreement
8% of exam
Property Ownership
10% of exam
Land Use Controls and Regulations
8% of exam
Valuation and Market Analysis
10% of exam