Real Estate · General

Under the federal Fair Housing Act, which of the following is an example of illegal 'steering'?

Correct answer

Directing prospective buyers toward or away from particular neighborhoods based on their race, religion, or other protected class — limiting their housing choices based on protected characteristics

  1. A Showing a buyer all available homes in their price range
  2. B Directing prospective buyers toward or away from particular neighborhoods based on their race, religion, or other protected class — limiting their housing choices based on protected characteristics
  3. C Negotiating the best price for a client
  4. D Recommending a home inspector

Why this is the answer

STEERING: The illegal practice of directing prospective buyers or renters TOWARD or AWAY FROM particular neighborhoods, buildings, or areas based on a PROTECTED CLASS characteristic (race, color, religion, national origin, sex, familial status, disability) — thereby limiting their housing choices. EXAMPLES: Showing a minority buyer homes only in certain neighborhoods; telling a family with children about only certain areas; discouraging someone from a neighborhood based on its demographic makeup; even 'positive' steering (assuming a buyer would 'prefer' a certain area based on protected status) is illegal; WHY ILLEGAL: It perpetuates segregation and denies equal access to housing; the agent must let the buyer choose based on their own criteria (price, size, location preferences they express) — not the agent's assumptions about where they 'belong'; RELATED VIOLATIONS: Blockbusting (inducing panic selling), redlining (denying services in areas based on protected class); FAIR HOUSING applies to agents' words and actions; agents should show all properties matching the client's stated criteria and let the client decide; steering is a serious Fair Housing Act violation and a critical national exam topic.
Source: Real Estate National — Fair Housing, Steering

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