California Real Estate SalespersonPractice of Real Estate and DisclosuresHard
A real estate agent representing a seller in a diverse neighborhood consistently shows minority buyers listings only in certain zip codes while showing similar listings in other areas to non-minority buyers. This practice is best described as:
- APanic peddling
- BSteering
- CRedlining
- DBlockbusting
Show answer & explanationAnswer & explanation
Correct answer: B. Steering
Steering occurs when an agent guides prospective buyers or renters toward or away from certain neighborhoods based on a protected characteristic, such as race, limiting their housing choices. This is distinct from blockbusting (inducing sales through fear of demographic change), redlining (denying services based on location/demographics, often by lenders), and panic peddling (a form of blockbusting).
Why the other options are wrong
- A. Panic peddling is a synonym for blockbusting, not this scenario of directing buyers by area.
- C. Redlining refers to denial of loans or services based on the racial/ethnic composition of an area.
- D. Blockbusting involves inducing panic selling by suggesting demographic change will harm property values.
Steering
Steering is the illegal practice of directing homebuyers or renters toward or away from certain neighborhoods based on a protected characteristic such as race or national origin.
- Violates Fair Housing Act and California FEHA
- Limits housing choices based on protected class
- Distinct from blockbusting and redlining
Memory trick: 'Steer clear of steering—let buyers choose their own gear.'