EstatePass
Practice Of Real EstateFair HousingMEDIUM

Which of the following best describes the illegal practice of steering in real estate?

Correct Answer

B) Directing buyers or renters toward or away from certain neighborhoods based on protected class characteristics

Steering is the illegal practice of directing buyers or renters toward or away from certain neighborhoods based on race, color, religion, sex, national origin, disability, familial status, or other protected class characteristics. It is a violation of the federal Fair Housing Act and Maine's Human Rights Act (5 M.R.S. §4581 et seq.). Steering denies individuals the freedom to choose housing in any neighborhood and perpetuates segregation.

Answer Options
A
Refusing to provide mortgage loans in certain geographic areas based on neighborhood demographics
B
Directing buyers or renters toward or away from certain neighborhoods based on protected class characteristics
C
Inducing homeowners to sell by suggesting that demographic changes will lower property values
D
Setting different commission rates for buyers based on their national origin

Why This Is the Correct Answer

Sign up free to unlock full analysis

Why the Other Options Are Wrong

Sign up free to unlock full analysis

Deep Analysis of This Practice Of Real Estate Question

Sign up free to unlock full analysis

Background Knowledge for Practice Of Real Estate

Sign up free to unlock full analysis
Sign up free to unlock full analysis

Real World Application in Practice Of Real Estate

Sign up free to unlock full analysis

Common Mistakes to Avoid on Practice Of Real Estate Questions

Sign up free to unlock full analysis

Related Topics & Key Terms

Related Topics:

blockbustingredliningFair Housing ActMaine Human Rights Actprotected classes

Key Terms:

steeringFair Housing Actprotected classMaine Human Rights Actdiscriminationneighborhood

Related Concepts

Broker supervision is the legal obligation of a designated or managing broker to oversee and be accountable for the real estate activities of all salespersons and associate brokers operating under their license.

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.

Was this explanation helpful?

More Practice Of Real Estate Questions

People Also Study

Related Articles

Practice More Questions

Access 2,000+ practice questions and pass your real estate exam.

Start Practicing