Reviewed by Casa Academy and updated July 29, 2026 using the current DBPR checklist and Pearson VUE scheduling guidance.
Blockbusting
Blockbusting is the illegal practice of persuading owners to sell or list by suggesting that people of a particular protected class moving into the neighborhood will reduce property values or change the character of the area.
Exam context
Flag any scenario where an agent door-knocks saying minority buyers will drive prices down. Correct answers cite Fair Housing Act violations and possible license discipline, not clever marketing.
What makes the conduct illegal
Blockbusting exploits fear and stereotypes to generate listings or flips. It violates the federal Fair Housing Act and parallel state laws regardless of whether the agent personally believes the claims. Profit motive does not excuse discriminatory speech or steering.
Legitimate vs prohibited messaging
Sharing verified public data about schools or taxes is different from predicting racial change will "ruin" investment value. Agents may discuss market trends using objective sources, but may not solicit business based on protected-class composition of a block.
Examples
Panic peddling call
An agent phones homeowners claiming a church building will attract "undesirable" residents and offers a quick sale before values drop. This is blockbusting.
Compliant farming
An agent mails recent comparable sales and median prices without referencing race, religion, or national origin of new neighbors.
Keep studying
Related terms
- Americans with Disabilities Act of 1990Federal accessibility and anti-discrimination requirements.
- Blind adAdvertising that fails to identify the brokerage.
Related resources
- Free exam prep
Practice related licensing questions with instant feedback.
- Real estate glossary hub
Browse all published national glossary entries.
- Florida exam topic hub
Florida-specific explainers and question sets for this topic area.
Sources
- HUD: blockbusting and steering(U.S. Department of Housing and Urban Development)