32. 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 the preferred area associated with their religion, thereby limiting the client's options based on the licensee's own biases.
A) steering
Steering occurs when a real estate agent guides clients towards or away from certain neighborhoods based on their race, religion, or other protected characteristics. In this case, the licensee is specifically showing properties only in an area favored by their own religious group, which restricts the client's choices and constitutes a violation of fair housing laws.
B) blockbusting
Blockbusting involves inducing homeowners to sell their properties by suggesting that a change in the neighborhood's demographics will lead to a decrease in property values. This option is incorrect as the scenario does not describe any attempt to manipulate homeowners based on neighborhood composition but rather focuses on the licensee's selective practices with clients.
C) panic peddling
Panic peddling refers to the practice of instilling fear in property owners to sell quickly, often related to demographic changes. This option is not applicable here since the licensee is not causing panic among homeowners but is instead limiting the choices of a buyer based on personal preferences.
D) religious freedom
While the licensee has the right to their religious beliefs, this option does not address the issue of discriminatory practices in real estate. Religious freedom does not justify steering clients toward specific neighborhoods based solely on the agent's religious affiliation.
Conclusion
The correct answer is steering, as it encapsulates the licensee's practice of limiting a client's property options based on personal beliefs. All other options fail to accurately describe the behavior exhibited in the scenario, which is a clear case of discriminatory practice in real estate transactions.