Tennessee Real Estate License Exam Practice Question
A licensee is aware of a religious group organizing a commune in an area. In an effort to get listings, the licensee tells owners in the neighborhood about the commune. Which of the following terms best describes the licensee's activities?
Correct Answer: C
Rationale: The licensee's activities exemplify blockbusting, which involves inducing panic selling by suggesting that a change in neighborhood demographics will negatively impact property values. By informing homeowners about the religious group's commune, the licensee aims to create fear and urgency, prompting them to sell quickly.
Steering (A) refers to guiding individuals towards or away from certain neighborhoods based on their characteristics, which is not applicable here. Redlining (B) involves denying services based on racial or ethnic composition, a different issue altogether. Alienating (D) is not a recognized term in this context and does not accurately describe the licensee's actions.
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