Hawaii Pre-Licensing National Practice Exam

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Prepare for the Hawaii Pre-Licensing National Exam. Study with flashcards and multiple choice questions, each question provides hints and explanations. Get ready for success!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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What illegal practice occurs when a broker suggests properties based on racial demographics?

Redlining
Discrimination
Steering
Blockbusting

The correct answer is: Steering

Steering is the illegal practice where a broker influences a buyer's property search based on their race or the racial demographics of a neighborhood. This practice aims to guide or "steer" individuals towards or away from certain neighborhoods based on their race, which perpetuates segregation and discrimination in housing. It violates the Fair Housing Act, which prohibits discrimination based on race, color, national origin, religion, sex, familial status, or disability. This practice can manifest in various ways, such as a broker showing a client homes predominantly in neighborhoods that match their racial profile while ignoring more diverse areas or those with different demographics. By perpetuating the idea that certain communities are more suitable for specific races, steering undermines the principle of equal housing opportunities and fosters discriminatory practices within the real estate industry.