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Real Estate · Fair Housing and Discrimination

What is 'steering,' and why is it a fair housing violation a broker must prevent?

Reviewed by Jordan Morley, Editorial Lead at 247SimpleTests. Written by the 247SimpleTests Editorial Team from the official source material cited on every question.

Correct answer

Guiding prospective buyers toward or away from particular neighborhoods based on protected characteristics such as race or national origin, which unlawfully limits housing choice

  1. A Directing a client to the best-priced home
  2. B Recommending a home inspector
  3. C Negotiating on a client's behalf
  4. D Guiding prospective buyers toward or away from particular neighborhoods based on protected characteristics such as race or national origin, which unlawfully limits housing choice

Why this is the answer

Steering is the illegal practice of directing prospective buyers or renters toward or away from certain neighborhoods, buildings, or areas based on a protected characteristic — such as race, color, religion, national origin, sex, familial status, or disability — rather than the client's own stated preferences. It violates the federal Fair Housing Act because it limits housing choices and perpetuates segregation. A broker must train and supervise agents to avoid steering, blockbusting, and discriminatory advertising, and to treat all clients equally. Because brokers are responsible for their firm's compliance, fair-housing supervision is a recurring broker-level theme, and violations can bring serious penalties.
Source: ARELLO Broker Fair Housing

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About this topic: Fair Housing and Discrimination

Fair housing at broker level covers the protected classes, the practices that violate the Fair Housing Act (steering, blockbusting, redlining), advertising rules, accessibility, and the broker's liability for the office's conduct. This is one of 5 Broker (National) questions on fair housing and discrimination, each with a full explanation on a single study page.

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