What is the term for directing home seekers to specific neighborhoods based on protected classes?

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Prepare for the Texas Real Estate Principles 1 Test. Utilize flashcards and multiple choice questions with detailed explanations for each question. Boost your confidence and ace your exam!

Steering is the term used to describe the practice of directing home seekers toward specific neighborhoods based on their membership in protected classes, such as race, religion, or national origin. This practice is considered discriminatory and violates fair housing laws. Steering occurs when real estate professionals guide clients to or away from certain areas to maintain the racial or economic homogeneity of neighborhoods, effectively limiting choices for buyers and renters.

In contrast, blockbusting refers to a practice where real estate agents provoke panic selling in a neighborhood by suggesting that certain demographic changes are about to occur, leading to a decline in property values. Redlining involves refusing loans or insurance to individuals in certain areas based on racial or ethnic composition, often leading to economic disparities and segregated communities. Fair Housing is a set of laws designed to eliminate discrimination in housing practices, encompassing various protective measures to ensure equal access to housing for all individuals, regardless of their backgrounds.

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