Question 23

Steering can occur if a prospective buyer is offered choices limited to a particular location or locations.

Steering is a discriminatory practice in real estate where buyers are directed towards or away from certain neighborhoods based on their race or other protected characteristics. This option accurately describes how steering can manifest when a buyer is restricted to specific locations.

A) It causes integration of a neighborhood by the use of panic peddling.

This statement is incorrect because steering does not promote integration; rather, it perpetuates segregation by directing individuals to specific areas based on race. Panic peddling, on the other hand, involves creating fear in a neighborhood to drive home values down and encourage sales, which is not related to the concept of steering itself.

B) It can occur if a prospective buyer chooses a particular neighborhood where no one of her race lives, then a real estate licensee shows her listings there.

This option is misleading because while it discusses a scenario where a buyer is seeking a specific neighborhood, it does not accurately represent the nature of steering. Steering involves actively directing buyers away from certain neighborhoods, rather than simply showing listings in areas where the buyer's race is not represented.

C) If an incident involving steering has taken place, then blockbusting must also have occurred.

This statement is incorrect as steering and blockbusting are distinct practices. Steering can occur independently, while blockbusting involves inducing panic selling. Therefore, the occurrence of one does not necessitate the occurrence of the other.

D) It can occur if a prospective buyer is offered choices limited to a particular location or locations.

This statement is true and clearly defines steering. When a prospective buyer is limited to specific locations based on discriminatory practices, it exemplifies how steering operates within real estate transactions.

Conclusion

The correct answer is option D, as it directly describes how steering limits the choices of prospective buyers based on discriminatory factors. Options A, B, and C fail to accurately capture the essence of steering, focusing instead on unrelated or incorrect interpretations of real estate practices. Understanding these distinctions is crucial in recognizing and preventing discriminatory practices in housing.