Skip to content
Pass Georgia

National curriculum lesson · Practice of Real Estate

Steering, Blockbusting, Redlining, and Disparate Treatment

Steering directs or discourages housing choices because of a protected characteristic. Blockbusting induces transactions by suggesting protected-class demographic change. Redlining denies or restricts services because of area demographics or protected traits. Disparate treatment applies different rules or service because of a protected characteristic. These acts can occur through words, omissions, search settings, availability, pricing, terms, or service quality.

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

What is the exam-ready answer?

Steering directs or discourages housing choices because of a protected characteristic. Blockbusting induces transactions by suggesting protected-class demographic change. Redlining denies or restricts services because of area demographics or protected traits. Disparate treatment applies different rules or service because of a protected characteristic. These acts can occur through words, omissions, search settings, availability, pricing, terms, or service quality.
Official syllabus mapping for Steering, Blockbusting, Redlining, and Disparate Treatment
Official syllabus topicSteering, Blockbusting, Redlining, and Disparate Treatment
Official PSI areaPractice of Real Estate
Published area weight12% of the 100-question national portion
Exam portionNational salesperson portion
Source editionPSI Georgia Candidate Information Bulletin dated July 1, 2026

The Rule

PSI publishes the weight for the complete content area, not a fixed question count for this lesson. Learn the rule well enough to apply it when PSI changes names, numbers, or parties in a new scenario.

The lesson

These ideas work together. On the exam, the wrong answers usually describe a nearby concept, so learn where each one stops.

Sexual orientation and gender identity

PSI explicitly includes protection involving sexual orientation and gender identity in the national outline. The Fair Housing Act names sex as a protected class, while current statutes, controlling court decisions, agency rules, and state or local law determine how a particular claim is analyzed. For exam purposes, a licensee must provide the same housing service and must not restrict choices because a person is gay, lesbian, bisexual, transgender, or perceived to be so.

Steering

A housing professional cannot select neighborhoods for a person because of race, religion, national origin, familial status, disability, sex, or other protected status. Use the consumer's stated, lawful property criteria and neutral resources.

Blockbusting

A person cannot generate listings or sales by warning owners that protected-class entry will lower values, increase crime, or change the neighborhood.

Redlining

Lenders, insurers, appraisers, and housing providers cannot draw service boundaries or alter availability and terms based on protected demographics rather than legitimate risk factors.

Disparate treatment and impact

Disparate treatment is intentional different treatment. A facially neutral policy can also create unlawful discriminatory effects under the governing legal standard, even without explicit slurs.

Decision rule

Identify the actor, housing action, protected basis, different treatment or effect, and stated legitimate criterion.

Georgia-specific distinction

The federal Fair Housing Act applies in Georgia. Georgia licensees must give consistent service, document buyer-selected criteria, provide objective source-based information, and avoid describing neighborhood desirability through protected-class proxies.

Worked example

Scenario. An agent removes homes from a buyer's search in neighborhoods where most residents have a different national origin, without asking the buyer.

Reason it through. The agent altered housing choices using a protected characteristic rather than the buyer's neutral criteria.

Answer. This is steering even if the agent claims benevolent intent.

Common exam traps

  • Thinking good intent excuses steering
  • Limiting redlining to literal maps
  • Using school or crime talk as demographic code
  • Applying unequal standards without documentation

Original practice questions with detailed explanations

These questions were written for instruction and mapped to the current outline. They are not copied from PSI or any live examination. Choose an answer before opening the explanation.

Question 1

An agent refuses to show an available home to a transgender buyer because the agent believes the seller would object. What should the agent do?

  1. A. Provide the same service and show the home if it meets the buyer's criteria
  2. B. Ask the seller for permission before scheduling the showing
  3. C. Refer the buyer elsewhere without explaining why
  4. D. Show only homes where the agent expects no objection
Show answer and explanation →

Answer: A. Provide the same service and show the home if it meets the buyer's criteria

The agent must provide equal service and cannot restrict housing choices because of gender identity. A seller's expected preference does not authorize discrimination, and a referral made for that reason would continue the unequal treatment.

Question 2

An agent mails flyers telling homeowners that families of a certain national origin are moving in, that prices will soon fall, and that they should list now. What practice is this?

  1. A. Steering
  2. B. Redlining
  3. C. Disparate impact
  4. D. Blockbusting
Show answer and explanation →

Answer: D. Blockbusting

Blockbusting induces owners to sell by suggesting that protected-class entry will change values or the neighborhood. Steering is wrong because steering guides a buyer's or renter's choice rather than soliciting listings through fear.

Question 3

A Jewish buyer asks to see homes in three suburbs. The agent shows homes in only one, saying the buyer will feel more at home near neighbors of the same faith. What is this?

  1. A. Blockbusting
  2. B. Steering
  3. C. Redlining
  4. D. Lawful buyer guidance
Show answer and explanation →

Answer: B. Steering

Steering directs a consumer toward or away from areas because of a protected characteristic, here religion. Calling it lawful guidance is the trap: the agent must work from the buyer's stated criteria, not assumptions about who belongs where.

Question 4

An apartment complex's written policy requires a credit check for every applicant, but the leasing agent runs checks only on applicants of one race. What is the violation?

  1. A. Redlining
  2. B. Blockbusting
  3. C. Disparate treatment
  4. D. None, since the written rule is neutral
Show answer and explanation →

Answer: C. Disparate treatment

Disparate treatment is applying different rules or service because of a protected characteristic, and it can happen even when the written policy is neutral. Redlining looks plausible, but it means denying or restricting services because of an area's demographics.

Ready to move on?

You are ready for the next lesson when all of these are true.

  • Separate steering, blockbusting, redlining, and disparate treatment from memory.
  • Explain why good intentions do not excuse steering.
  • Apply equal-service principles to sexual orientation and gender identity scenarios.
  • Identify the actor, protected basis, housing action, and unequal treatment in a new fact pattern.
  • Answer all four questions correctly and explain why each rejected option describes a different rule.
  • Revisit the topic later in mixed practice without category labels.

Recommended next lesson

Continue with Fair Housing Advertising, ADA Access, Accommodation, and Modification. Fair Housing Advertising, ADA Access, Accommodation, and Modification carries these same prohibited preferences into ad wording and audience targeting, then separates accommodations to rules from modifications to premises.

Return to the Practice of Real Estate hub to see every official branch and the complete lesson sequence for this content area.

Steering, Blockbusting, Redlining, and Disparate Treatment questions

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

Is Steering, Blockbusting, Redlining, and Disparate Treatment on the Georgia real estate exam?

Yes. It belongs to PSI's Practice of Real Estate content area, which is 12% of the 100-question national portion. PSI publishes content-area weights, not a guaranteed question count for this individual lesson.

What is the main rule for Steering, Blockbusting, Redlining, and Disparate Treatment?

Identify the actor, housing action, protected basis, different treatment or effect, and stated legitimate criterion.

What Georgia-specific distinction should I remember?

The federal Fair Housing Act applies in Georgia. Georgia licensees must give consistent service, document buyer-selected criteria, provide objective source-based information, and avoid describing neighborhood desirability through protected-class proxies.