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Pass California

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 targets the seller. Redlining targets the borrower by refusing to lend or insure in an area. Steering targets the buyer by directing them toward or away from areas. All three are prohibited under federal and California fair housing law, and the exam distinguishes them by asking who is being manipulated.

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 a lending or insurance refusal based on geography.

See also

SteeringDirecting prospective buyers toward or away from neighbourhoods based on a protected characteristic.RedliningRefusing to lend, or to insure, in a geographic area because of the racial or ethnic composition of that area.

See it in a question

One question from Practice and Disclosures, so the term lands in the context the exam uses it in.

Practice and Disclosures ยท 25%Trust Account Management

A salesperson receives a $5,000 good-faith deposit check made payable to the seller. What must happen to it?

Written to DRE's published topic list. Not a real examination question, since reproducing those is a misdemeanour under B&P Code section 123.

Where this is tested

Practice of Real Estate and DisclosuresThe largest area by a wide margin, and the one most study plans leave until last. It is where trust accounts, fair housing, advertising, supervision, DRE discipline and every mandated disclosure live.25%Practise Practice and Disclosures50 questions on this area, every option explained.Practice

Other terms in this area