PSI Oklahoma Real Estate Practice Test

What term describes the practice of directing buyers of a certain race to specific parts of the city?

1. Redlining

2. Blockbusting

3. Steering

4. Segregation

The correct answer is: Steering

The term that describes the practice of directing buyers of a certain race to specific parts of the city is known as steering. This practice involves real estate agents or brokers guiding prospective buyers toward neighborhoods that align with their race or ethnicity while subtly discouraging them from considering other areas. Steering is considered a discriminatory practice and is illegal under the Fair Housing Act, as it perpetuates segregation and limits the housing choices available to individuals based on their race. In contrast, redlining refers to the practice of denying services, typically financial, to residents in certain areas based on racial or ethnic composition, thereby leading to disinvestment in predominantly minority neighborhoods. Blockbusting involves inducing homeowners to sell their properties at a lower price by instilling fear that racial minorities will move into the neighborhood, which then serves to exploit the property market. Segregation more broadly refers to the separation of groups based on characteristics such as race or ethnicity but does not specifically address the targeted practices of real estate transactions.