A practice involving inducing panic selling for financial gain by insinuating that a minority group is moving into the area is called:

A practice involving inducing panic selling for financial gain by insinuating that a minority group is moving into the area is called:

• A. Blockbusting
• B. Redlining
• C. Steering
• D. Overt Discrimination

Answer: (A)

Blockbusting is the practice described. It happens when a real estate professional uses fear that a minority group is moving into a neighborhood to cause current homeowners to sell quickly at depressed prices. The agent then buys those properties and resells them, often to minority buyers, profiting from the panic. This targets protected classes and is illegal under the Fair Housing Act because it exploits fear and discrimination to influence housing decisions. It’s distinct from redlining (refusing to lend or insure in a area), steering (directing people to or away from areas because of protected characteristics), and overt discrimination (explicit unequal treatment).

Blockbusting is the practice described. It happens when a real estate professional uses fear that a minority group is moving into a neighborhood to cause current homeowners to sell quickly at depressed prices. The agent then buys those properties and resells them, often to minority buyers, profiting from the panic. This targets protected classes and is illegal under the Fair Housing Act because it exploits fear and discrimination to influence housing decisions. It’s distinct from redlining (refusing to lend or insure in a area), steering (directing people to or away from areas because of protected characteristics), and overt discrimination (explicit unequal treatment).