Practice and Disclosures, 25% of the examination
Blockbusting
Inducing owners to sell by representing that people of a protected class are moving into the area.
Also called panic selling or panic peddling. It pressures owners to sell using representations about protected groups entering an area. Redlining discriminates in lending, insurance, or related services because of an area's protected-group composition. Steering directs housing seekers based on protected traits. The difference is the conduct, not merely the location or the identity of the person affected.
What this is confused with
The exam rarely asks for a definition. It describes a situation and offers two terms that both sound plausible.
Steering
Steering directs a buyer. Blockbusting frightens a seller.
Redlining
Redlining is discriminatory restriction of lending or insurance based on an area's protected-group composition, not lawful property-risk underwriting.
See also
Test the distinction
A relevant question from Practice and Disclosures, selected because its facts or explanation use this concept.
Which practice involves inducing owners to sell by suggesting that people of a particular protected class are moving into the area?
Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanor under B&P Code section 123.
Primary sources
Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.