National Real Estate Exam (PSI)Practice of Real EstateMedium
A real estate agent consistently shows homes in a particular neighborhood only to buyers of a certain race, while showing homes in other neighborhoods to buyers of different races. This practice is known as:
- ARestrictive covenanting
- BSteering
- CRedlining
- DBlockbusting
Show answer & explanationAnswer & explanation
Correct answer: B. Steering
Steering occurs when an agent directs buyers toward or away from certain neighborhoods based on a protected class, limiting housing choice. This violates the Fair Housing Act.
Why the other options are wrong
- A. Restrictive covenants are private deed provisions, not agent conduct.
- C. Redlining refers to lenders denying loans in certain areas based on demographics.
- D. Blockbusting involves inducing panic selling by suggesting a protected class is moving in.
Steering
The illegal practice of directing homebuyers toward or away from certain neighborhoods based on a protected class.
- Violates Fair Housing Act
- Limits housing choice based on race, religion, etc.
- Distinct from redlining (lending) and blockbusting (panic selling)
Memory trick: Steering = 'steering' buyers like a wheel toward/away from areas