What is the term for the illegal practice of inducing homeowners to sell by suggesting that people of a certain protected class are moving into the neighborhood, which will cause property values to decline?
Correct Answer
B) Inducing homeowners to sell by exploiting fears about demographic change in the neighborhood
Blockbusting, also called panic peddling, is the illegal practice of inducing homeowners to sell their properties by implying that people of a certain race, religion, national origin, or other protected class are moving into the neighborhood and that this will cause property values to decline. Blockbusting violates the federal Fair Housing Act and Idaho fair housing laws, and can result in significant civil and criminal penalties.
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Related Topics & Key Terms
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Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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