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Tx Fair Housing DtpaFederal_and_texas_fair_housingMEDIUM

A Texas license holder shows a buyer several properties. The buyer mentions wanting to live in a neighborhood with good schools. The license holder responds by saying, "You probably wouldn't want to look in that area—the schools aren't very good there," referring to a predominantly minority neighborhood. Under the Texas Fair Housing Act, what violation has potentially occurred?

Correct Answer

C) Steering because the license holder is directing the buyer away from a neighborhood based on its racial composition

Under the Texas Fair Housing Act (Texas Property Code §301.025) and federal law, steering occurs when a license holder directs prospective buyers toward or away from certain neighborhoods based on the racial or ethnic composition of those areas. Using school quality as a proxy to discourage a buyer from a predominantly minority neighborhood constitutes steering.

Answer Options
A
Blockbusting because the license holder is discouraging investment in certain neighborhoods
B
Redlining because the license holder is restricting access to housing in a particular geographic area
C
Steering because the license holder is directing the buyer away from a neighborhood based on its racial composition
D
No violation has occurred because the license holder was providing objective school quality information

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Related Topics & Key Terms

Key Terms:

fair_housingsteeringschool_qualityproxy_discrimination

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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