What illegal practice involves showing minority buyers properties only in minority-dominated areas?

Study for the ASU REA380 Exam 2. Prepare with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for success!

The practice described in the question refers to steering, which is when real estate agents guide homebuyers towards or away from certain neighborhoods based on their race or ethnicity. By showing minority buyers properties only in minority-dominated areas, agents are effectively limiting their options and perpetuating segregation. Steering is considered illegal under the Fair Housing Act, which aims to promote equal housing opportunities and prevent discrimination based on race, color, national origin, religion, sex, familial status, or disability.

In contrast, redlining involves lenders refusing loans or insurance based on the racial composition of a neighborhood, thereby denying access to credit for residents in those areas. Blockbusting refers to a practice where real estate agents would instigate a rapid change in a neighborhood's racial composition to profit from the sale of properties, typically by exploiting the fears of white homeowners about declining property values. Discrimination is a broader term that encompasses various unfair treatment practices, including steering. However, steering specifically relates to the act of guiding buyers based on their minority status, making it the most accurate choice for the question.

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