Fair Housing
The illegal practice of inducing homeowners to sell by implying that members of a protected class are moving into the area.
Blockbusting (also called panic peddling) is a Fair Housing violation in which an agent or investor induces property owners to sell quickly at below-market prices by suggesting that the neighborhood's character is about to change due to the influx of people of a different race, religion, or national origin. The agent then profits by reselling at inflated prices. Blockbusting exploits fear and prejudice and is illegal under both federal and New York law.
Exam Tip
Any suggestion that people of a particular protected class are 'moving in' to induce a sale is blockbusting, regardless of whether the agent believes it.
Study Guide
Fair Housing
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NY Real Estate Fair Housing
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