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Practice Of Real EstateFair_housingHARD

A Utah sales agent is working with buyers in Draper. One buyer asks the agent to help them find a neighborhood with 'people like us,' implying a preference for a particular racial composition. The agent begins showing homes only in neighborhoods with a specific demographic makeup. Which fair housing violation has the agent committed?

Correct Answer

D) Steering, by directing buyers toward or away from neighborhoods based on race

Steering is the illegal practice of directing buyers or renters toward or away from certain neighborhoods based on their race, color, national origin, religion, sex, familial status, or disability, or based on the demographic composition of those areas. Under the Fair Housing Act (42 U.S.C. § 3604), steering violates the protected class of race (and potentially others). Even when the buyer requests it, the agent must not comply with steering requests — doing so makes the agent personally liable for a fair housing violation.

Answer Options
A
Blockbusting, by inducing sellers to sell based on demographic change
B
Redlining, by refusing to show properties in certain geographic areas
C
Tying, by conditioning the sale of one property on the purchase of another
D
Steering, by directing buyers toward or away from neighborhoods based on race

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Related Topics & Key Terms

Key Terms:

steeringracefederal_fair_housingagent_liabilitybuyer_agent

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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