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Real estate glossaryNational 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.

Exam area: Practice of Real Estate

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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 wrong 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.

What is the most common exam trap?

Trap correction

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

Original exam check

Apply the definition

A licensee mails flyers to owners on one street saying that families of a certain religion are buying nearby and that owners should sell now before prices drop. No one has sold yet. What is this?

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Related terms to learn next

Steering

Steering is guiding a housing prospect toward or away from neighborhoods, properties, or communities because of the person's protected-class status or the protected-class composition of an area.

Redlining

Redlining is denying, limiting, pricing, or discouraging lending, insurance, brokerage, or other housing-related services because of the racial, ethnic, protected-class, or geographic character of an area rather than legitimate individual risk factors.

Fair Housing Act

The federal Fair Housing Act prohibits discrimination in covered housing sales, rentals, advertising, financing, brokerage, and related services because of race, color, religion, sex, familial status, national origin, or disability.

Protected class

A protected class is a group defined by a characteristic that anti-discrimination law prohibits decision-makers from using as a basis for specified housing, credit, employment, or public-accommodation conduct.

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.
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