Question 34

Steering is an illegal act of channeling buyers or tenants to certain areas.

Steering refers to the practice of directing individuals towards or away from specific neighborhoods based on their race, ethnicity, or other characteristics, thereby influencing the demographic composition of those areas.

A) puffing

Puffing is a term used in real estate to describe exaggerated claims about a property’s features or benefits. It does not involve directing individuals to particular areas based on demographics and is therefore not relevant to the question of illegal acts of channeling buyers or tenants.

B) redlining

Redlining refers to the discriminatory practice where banks and insurers refuse services to certain neighborhoods based on racial or ethnic composition. While it is related to housing discrimination, it does not specifically describe the act of channeling buyers or tenants, making it an incorrect choice.

C) steering

Steering is indeed the correct answer as it explicitly involves guiding potential buyers or tenants towards or away from certain neighborhoods based on demographic factors. This practice is illegal and is a direct violation of fair housing laws.

D) blockbusting

Blockbusting is a strategy used by real estate agents to convince homeowners to sell their properties at a lower price by instilling fear that certain demographic groups will move into the neighborhood. Although it involves demographic changes, it is distinct from steering, which focuses on directing individuals specifically to certain areas.

Conclusion

Steering is the correct answer as it directly pertains to the illegal act of channeling buyers or tenants to maintain or alter the demographic composition of specific areas. In contrast, puffing, redlining, and blockbusting, while related to real estate practices, do not accurately describe this specific illegal action.