55. 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
The licensee is guilty of steering.
Steering occurs when a real estate licensee guides clients towards or away from certain neighborhoods based on their race, religion, or other protected characteristics. By only showing the new client houses in the preferred area without exploring other options, the licensee is effectively limiting the client's choices based on the licensee's personal preferences.
A) steering.
This option is correct because the licensee is directing a client to a specific area that aligns with their own religious beliefs, rather than providing a broad selection of properties. This practice can lead to discrimination and is considered unethical in real estate as it limits the client’s opportunities to explore different neighborhoods.
B) blockbusting.
Blockbusting refers to the practice of persuading owners to sell their properties at a loss by implying that the demographic composition of the neighborhood is changing, which can lead to panic selling. In this scenario, the licensee is not causing sellers to panic or selling properties based on demographic changes, thus this option is incorrect.
C) panic peddling.
Panic peddling involves inducing panic among homeowners about the potential decrease in property values due to incoming different demographic groups. Since the scenario does not describe the licensee instigating panic among homeowners, this option is not applicable.
D) religious freedom.
While the licensee is exercising personal beliefs in their practice, this does not justify the unethical practice of steering. Religious freedom does not permit discrimination in real estate practices, making this option incorrect in this context.
Conclusion
The licensee's actions clearly demonstrate steering, as they are not providing a diverse range of options to the client based on their own preferences. All other options either misinterpret the situation or do not apply, reinforcing that steering is the main ethical violation in this scenario.