30. A real estate licensee was very devout in a certain religion and made it a practice to sell houses in an area that was enjoyed by many people of the same faith. The licensee always worked the same area, and knew it very well. Due to this, the licensee did NOT find it necessary to venture out into other areas. One day the licensee received a call on a listing and, although this person did NOT purchase the listed property, the caller became a buyer client. If the licensee only shows the new client houses in the preferred area without a wide variety of other options, the licensee is guilty of
Answer: A
Steering
The licensee is guilty of steering by only showing the new client houses in a preferred area that aligns with their personal beliefs, thus limiting the client's options based on the licensee's preferences rather than the client's needs.
A) steering.
Steering occurs when a real estate professional guides clients towards or away from certain neighborhoods based on their own biases or the characteristics of the neighborhoods, such as religion in this case. By only showing properties in the area preferred by the licensee, they restrict the client's choices and fail to provide an equal opportunity to explore other options, which is a violation of fair housing practices.
B) blockbusting.
Blockbusting involves persuading homeowners to sell their properties by suggesting that the demographic composition of their neighborhood is changing, which could lead to a decline in property values. This option does not apply to the situation described, as there is no indication that the licensee attempted to instigate fear or manipulate the housing market based on demographic changes.
C) panic peddling.
Panic peddling is similar to blockbusting and refers to inducing fear in homeowners that their property values will decrease due to incoming demographic changes, prompting them to sell quickly. This scenario does not illustrate any such tactics being employed by the licensee, making this option incorrect.
D) religious freedom.
While the licensee has the right to practice their religion freely, this does not justify the discriminatory action of steering clients toward specific neighborhoods based solely on religious beliefs. Therefore, this option fails to address the ethical and legal implications of the licensee's behavior in the context of real estate practices.
Conclusion
The licensee's actions exemplify steering, as they limited the client's choices to a specific area based on their own religious preferences. This practice not only restricts the client's options but also violates fair housing laws that mandate equal treatment regardless of personal beliefs. Other options, such as blockbusting and panic peddling, do not accurately reflect the behavior described, while claiming religious freedom does not absolve the licensee of their responsibility to provide equitable service.