Question

An agent, broker or lender who are trying to scare owners in a neighborhood into selling their property by suggesting that property values will drop when a protected class moves into the area is an example of what?

Answer 1

Answer:

Blockbusting

Explanation:

Blockbusting is when real estate agents illegally persuade a home owner that real estate price will fall, buy their property, and sell at higher prices.

This occurred in the United States where white home owners were convinced prices will fall because black people were moving into the neighbourhood. The real estate agents bought properties at cheap prices and sold them at higher prices to black people.

Answer 2

Answer:

blockbusting

Explanation:

The Fair Housing Act prohibits discrimination based on race, gender, age, color, marital status, disabilities, marital status, religion, or national origin.

Blockbusting is illegal and it happened (hopefully doesn't anymore) when a real estate agent tried to trick white homeowners into selling their houses using the threat that protected classes (generally black minorities) are going to live next to them  and literally "invade" their neighborhood. This invasion would result in higher crime rates and a steep decrease in the price of their homes.

Then the same real estate agents would sell vacant houses to minorities at higher prices for the privilege of living in a white neighborhood.