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Practice Of Real EstateFair HousingMEDIUM

Which of the following best defines the illegal practice of blockbusting?

Correct Answer

B) Inducing homeowners to sell their properties by suggesting that persons of a protected class are moving into the neighborhood and will cause property values to decline

Blockbusting, also known as panic peddling, is the illegal practice of inducing homeowners to sell or rent their properties by making representations that persons of a particular race, color, religion, sex, national origin, disability, or familial status are moving or about to move into the neighborhood, and that this will cause property values to decline. It is prohibited under the federal Fair Housing Act and Maine's Human Rights Act (5 M.R.S. §4581 et seq.).

Answer Options
A
Refusing to provide financial services to residents of certain neighborhoods based on racial composition
B
Inducing homeowners to sell their properties by suggesting that persons of a protected class are moving into the neighborhood and will cause property values to decline
C
Directing prospective buyers to specific neighborhoods based on their religion or national origin
D
Refusing to show available properties to buyers because of their familial status

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Related Topics & Key Terms

Related Topics:

steeringredliningFair Housing ActMaine Human Rights Actpanic peddlingprotected classes

Key Terms:

blockbustingpanic peddlingFair Housing Actproperty valuesprotected classhomeowners

Related Concepts

License requirements are the mandatory qualifications—including pre-licensing education, examination, and background checks—that a person must satisfy before legally practicing real estate. These requirements are established and enforced by each state's real estate commission.

Market allocation is an illegal antitrust practice in which competing real estate brokerages agree to divide markets among themselves by geographic area, property type, or price range, thereby eliminating competition.

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.

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