Real Estate · General

A buyer's agent is asked by their client to show them homes 'only in certain neighbourhoods' in a way that steers them away from racially diverse areas. What must the agent do?

Correct answer

Refuse to engage in steering — showing property only in certain areas based on race, colour, national origin, or other protected classes is 'blockbusting' or 'steering,' both illegal violations of the Fair Housing Act

  1. A Follow the client's instructions — the client is the principal
  2. B Refuse to engage in steering — showing property only in certain areas based on race, colour, national origin, or other protected classes is 'blockbusting' or 'steering,' both illegal violations of the Fair Housing Act
  3. C Ask the client to sign a waiver first
  4. D Notify the seller that a buyer of a different race is interested

Why this is the answer

STEERING is the illegal practice of directing buyers toward or away from certain neighbourhoods based on the protected characteristics of current or prospective residents. It violates the Fair Housing Act regardless of whether the request comes from the buyer themselves. The fact that a client requested it does NOT make it legal. BLOCKBUSTING is the related illegal practice of inducing owners to sell by suggesting that persons of a protected class are moving into the neighbourhood, leading to panic selling. The agent's obligations: refuse the instruction; explain that it violates fair housing law; if the client insists, the agent should consider whether to continue the relationship. Agents who comply with steering requests face licence revocation, civil penalties, and private lawsuits.
Source: Real Estate Exam, Fair Housing Steering

Practice more questions

This question is from our Real Estate License Practice Tests practice test. Take the full practice test to test your knowledge across all General and other topics.

Take the Salesperson (National) practice test →

New to this exam? Our Real Estate exam guide explains the format, scoring, and how to prepare.

Related questions

State-specific guides

Need information for your state? Our state guides cover local requirements, fees, and what to expect on exam day.