Humber/Ontario Real Estate Course 2 Exam Practice

Which term refers to the illegal practice of a broker inducing homeowners to sell their properties by suggesting that people of a certain race, national origin, or religion are moving into the area?

1. Blockbusting

2. Redlining

3. Reverse Redlining

4. Steering

The correct answer is: Blockbusting

Blockbusting is the correct term that refers to the illegal practice of a broker inducing homeowners to sell their properties by suggesting that people of a certain race, national origin, or religion are moving into the area. This unethical practice aims to exploit the fears of homeowners by creating the false impression of an imminent decline in property values if they do not sell quickly. The other options are incorrect: - Redlining refers to the practice of denying services, such as loans or insurance, based on the racial or ethnic composition of a neighborhood, rather than inducing homeowners to sell. - Reverse Redlining is the practice of targeting minority communities with financial products that are less favorable compared to those offered to similarly qualified individuals in non-minority communities. - Steering is the illegal practice of guiding individuals towards or away from certain neighborhoods based on their race, religion, or other protected characteristics.