What is an example of blockbusting in real estate?
Examples of blockbusting include: When real estate agents alert the members of a neighborhood that it is “changing” and that they should sell their property. Making house-by-house telephone calls urging member of a neighborhood that they should sell before their property values decrease.
What does blockbusting mean in terms of real estate?
Blockbusting refers to the practice of introducing African American homeowners into previously all white neighborhoods in order to spark rapid white flight and housing price decline. Real estate speculators have historically used this technique to profit from prejudice-driven market instability.
Does the Federal Fair Housing Act prohibit blockbusting?
In the Sale and Rental of Housing: It is illegal to take any of the following actions based on the protected classes listed above: … Persuading, for profit, an owner to sell or rent their dwelling because of the entry or prospective entry of a particular protected class into the neighborhood (blockbusting)
What is the best definition of blockbusting?
: profiteering by inducing property owners to sell hastily and often at a loss by appeals to fears of depressed values because of threatened minority encroachment and then reselling at inflated prices.
What is panic selling in real estate?
Blockbusting, which is also known as panic selling and panic peddling, is an illegal racial discrimination practice wherein real estate brokers attempt to change the racial composition of a neighborhood by encouraging listings and sales in a neighborhood.
Is blockbusting a felony in Maryland?
How is the act of blockbusting regarded by Maryland law? … As unethical but prohibited by law. 2. As a felony.
Why is blockbusting so profitable?
Generally, “blockbusting” denotes the real estate and building development business practices which both profit and are fueled by anti-black racism. … They also profited from the commissions resulting from increased real estate sales and their higher than market financing of house sales to blacks.
Who is exempt from the Fair Housing Act?
The Fair Housing Act covers most housing. In very limited circumstances, the Act exempts owner-occupied buildings with no more than four units, single-family houses sold or rented by the owner without the use of an agent, and housing operated by religious organizations and private clubs that limit occupancy to members.
What are the 7 federal protected classes?
To briefly review, the federal Fair Housing Act (FHA) has seven protected classes, which include: race, color, religion, national origin, sex, disability, and familial status.
Which action is not prohibited by the federal Fair Housing Act?
The California statute prohibits discrimination on the basis of sexual orientation, medical condition, and source of income, none of which are prohibited by federal law.