An example of steering in real estate would involve what situation?

Prepare for the North Carolina Broker Reciprocal Exam. Sharpen your skills with flashcards and multiple-choice questions. Each question offers explanations to ensure clarity and understanding. Get ready to excel!

Steering in real estate refers to the unethical practice of guiding prospective homebuyers towards or away from specific neighborhoods based on their race, ethnicity, or other protected characteristics. This practice perpetuates segregation and limits individuals' choices about where they can live.

In this context, focusing on properties in predominantly African American neighborhoods for an African American family exemplifies steering, as it suggests that the family should only consider certain areas based on their racial identity rather than their housing preferences, needs, or financial situation. This approach undermines the principles of fair housing and can have harmful effects on communities by reinforcing racial boundaries.

The other situations provided do not constitute steering. Recommending lenders to clients is a standard practice aimed at helping buyers secure financing. Showing diverse properties to all clients promotes inclusivity and choice, allowing clients to find what best fits their needs regardless of their background. Highlighting properties based on personal preference might involve showcasing homes that fit a buyer's particular tastes without regard to their personal characteristics or racial identity, which is consistent with ethical practices in real estate.

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