New Jersey Real Estate Practice 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 actions exemplify blockbusting, a practice where agents create fear among property owners about potential changes in their neighborhood, often to encourage them to sell quickly and at lower prices. This tactic exploits concerns about a religious group, leading to increased turnover of properties.

Steering refers to directing clients toward or away from certain neighborhoods based on their protected characteristics, which is not applicable here. Redlining involves denying services based on racial or ethnic demographics, unrelated to the situation. Alienating is not a recognized term in real estate practices and does not accurately describe the licensee's actions.

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