Leasing License Practice Exam

Which of the following is an example of illegal steering?

1. Suggesting properties based on race

2. Encouraging contact with a real estate agent

3. Listing properties online

4. Offering discounts for long-term leases

The correct answer is: Suggesting properties based on race

Illegal steering refers to the practice of directing potential homebuyers or renters towards or away from certain neighborhoods or properties based on their race, ethnicity, or other protected characteristics. This action is discriminatory and violates federal fair housing laws, specifically the Fair Housing Act, which aims to promote equal housing opportunities regardless of race, color, national origin, religion, sex, familial status, or disability. In this context, suggesting properties based on race exemplifies steering because it perpetuates segregation and discrimination in housing. It implies that certain races belong in specific neighborhoods, thereby limiting choices based on racial identity. This practice is not only illegal but also undermines the principles of equity and inclusion in housing markets. The other options, while they may involve aspects of real estate practices, do not constitute steering. Encouraging contact with a real estate agent is a neutral action that does not indicate any discrimination. Listing properties online is a standard practice in real estate and promotes transparency without bias. Offering discounts for long-term leases is a marketing strategy and does not relate to discriminatory practices based on any protected characteristics.