Tennessee 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 promote fear of declining property values due to the arrival of multi-ethnic families, a tactic known as blockbusting. This practice exploits racial or ethnic tensions to encourage homeowners to sell their properties, often at a loss.
Option A, good marketing, misses the unethical implications of manipulating homeowners' fears.
Option C, redlining, refers to the discriminatory practice of denying services based on neighborhood demographics, which is not applicable here.
Option D, steering, involves directing homebuyers towards or away from certain neighborhoods based on their ethnicity, which is not the focus of the flyers.
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