New Jersey Real Estate License Exam Practice Question
Multi-ethnic families were beginning to move into a neighborhood that had previously been all one ethnicity. A local broker passed out flyers to homeowners that said, 'Sell now before it's too late! We have beautiful new homes with attractive financing and good schools.' These flyers would likely be viewed by the courts as:
Correct Answer: B
Rationale: The flyers distributed by the broker exploit racial or ethnic fears to encourage homeowners to sell their properties, a practice known as blockbusting. This tactic aims to create panic selling among residents by suggesting that the neighborhood's demographic changes will negatively impact property values.
Option A, good marketing, misrepresents the intent behind the flyers, which are manipulative rather than genuinely promotional.
Option C, redlining, refers to discriminatory lending practices that deny services based on neighborhood demographics, not the actions of a broker encouraging sales.
Option D, steering, involves directing buyers toward or away from certain neighborhoods based on race, which is not applicable in this scenario focused on selling.
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