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Complete glossary lessonNational exam concept

Blockbusting

Blockbusting is inducing or attempting to induce owners to sell or rent by suggesting that people of a protected class are entering or may enter the area and that negative consequences will follow.

Official area

Practice of Real Estate

Knowledge cluster

Fair housing

Learning sequence

Define, distinguish, apply, retrieve

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Exam purpose

Recognize the rule, then reject the nearest look-alike.

Georgia lens

Apply the state distinction only when the facts call for it.

Connected terms

Connected to 4 terms and one official content area.

What does Blockbusting mean in real estate?

Blockbusting is inducing or attempting to induce owners to sell or rent by suggesting that people of a protected class are entering or may enter the area and that negative consequences will follow.

How is Blockbusting different from the closest exam answer?

Blockbusting targets owners with fear to generate transactions. Steering directs prospects, while redlining restricts services or credit by area or protected-class patterns.

What is the Georgia-specific rule?

The federal prohibition applies in Georgia even if the predicted price change or neighborhood claim is framed as market advice.

Worked exam example

Scenario

An agent tells homeowners to list immediately because families of a particular race are moving nearby and values will supposedly fall.

Decision rule

Blockbusting targets owners with fear to generate transactions. Steering directs prospects, while redlining restricts services or credit by area or protected-class patterns.

What is the most common exam trap?

Trap correction

No actual demographic change or completed sale is required for the prohibited solicitation technique.

Memory cue: No actual demographic change or completed sale is required for the prohibited solicitation technique.

Original exam check

Apply the definition

Which statement correctly explains Blockbusting?

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Related terms to learn next

Recommended next complete lesson

Continue with Practice of Real Estate complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.

Blockbusting quick answers

Facts checked against the current PSI Candidate Information Bulletin and GREC sources. Editorial standards.

What is Blockbusting?

Blockbusting is inducing or attempting to induce owners to sell or rent by suggesting that people of a protected class are entering or may enter the area and that negative consequences will follow.

What is Blockbusting commonly confused with?

Blockbusting targets owners with fear to generate transactions. Steering directs prospects, while redlining restricts services or credit by area or protected-class patterns.

How does Georgia treat Blockbusting?

The federal prohibition applies in Georgia even if the predicted price change or neighborhood claim is framed as market advice.