An agent can be sanctioned for any behavior that is a violation of the Federal Fair Housing Act, including scare tactics or ____________?

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Blockbusting refers to the practice of persuading homeowners to sell their properties, often at a loss, by implying that the demographics of the neighborhood are changing and that property values will decrease as a result. This tactic exploits racial, ethnic, or socioeconomic fears to manipulate sellers into making decisions based on undue influence rather than objective market conditions.

Under the Federal Fair Housing Act, such practices are considered discriminatory and are illegal because they perpetuate segregation and inequality in housing. When an agent engages in blockbusting, they not only violate fair housing laws but also contribute to systemic discrimination and harm to communities. This aligns with the emphasis in the Fair Housing Act on promoting equal housing opportunities and preventing discrimination based on race, color, national origin, religion, sex, familial status, or disability. The inclusion of blockbusting in the context of sanctions against agents highlights the seriousness with which the law treats such unethical behavior.

The other behaviors related to fair housing violations, such as steering or redlining, are also illegal, but blockbusting specifically captures that active exploitation of fear to manipulate housing decisions, making it a particularly egregious violation under the Fair Housing Act.

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