Skip to content
Pass California

Practice and Disclosures, 25% of the examination

Redlining

Denying or discouraging lending, insurance, or housing services because of an area's protected-group composition rather than lawful risk factors.

Redlining draws a discriminatory boundary around a neighborhood and denies, discourages, or changes financial or housing services because of the people who live there. Legitimate underwriting can consider an applicant's qualifications and property-related risk, but not race, national origin, or another protected characteristic. It differs from steering, which directs a housing consumer, and blockbusting, which pressures an owner to sell.

See also

BlockbustingInducing owners to sell by representing that people of a protected class are moving into the area.SteeringDirecting prospective buyers toward or away from neighborhoods based on a protected characteristic.

Primary sources

Use these authorities when a course summary, forum answer, or older flashcard conflicts with the current California rule.

Where this is tested

Practice of Real Estate and DisclosuresThe exam's largest area. Learn trust funds, fair housing, advertising, supervision, DRE enforcement, property management and California disclosure rules as one practical system.25%Practice Practice and Disclosures72 questions on this area, every option explained.Practice

Other terms in this area