Texas Real Estate Brokerage Sales Apprentice Education (SAE) Practice Exam

What practice involves providing real estate services that perpetuate segregated housing?

1. Redlining

2. Steering

3. Blockbusting

4. Displacement

The correct answer is: Steering

Steering is the practice where real estate agents guide prospective buyers towards or away from specific neighborhoods based on the racial or ethnic demographic characteristics of the area, effectively perpetuating segregated housing. This discriminatory practice not only limits the options available to individuals or families seeking to purchase a home but also reinforces existing patterns of segregation. By influencing where people choose to live based on their background rather than their preferences or financial qualifications, steering creates barriers to equal housing opportunities. This practice is illegal under the Fair Housing Act, which prohibits discrimination on the basis of race, color, national origin, religion, sex, familial status, or disability. Other practices, such as redlining, blockbusting, and displacement, also relate to issues of segregation and inequality in housing but do not specifically describe the act of guiding buyers to particular areas based on their identity. Redlining refers to the refusal to provide services based on the racial composition of a neighborhood. Blockbusting involves inducing panic selling in white neighborhoods, leading to greater desegregation. Displacement is the act of forcing people to move from their homes, which can occur due to various factors, including gentrification. Each of these terms highlights a different facet of discrimination in housing but does not capture the