At a community meeting, Broker Amanda tells a group of families in an established neighborhood that several Indian families are planning to buy homes in their neighborhood. She tells them that this action could decrease their property values. Which statement is true?

a. Amanda is guilty of blockbusting.

b. This action is legal but very unprofessional.

c. Amanda is guilty of redlining.

d. This action is deliberate misrepresentation.

Answer:a. Amanda is guilty of blockbusting.

Explanation:

Blockbusting is an illegal and discriminatory tactic used by real estate agents to try and buy houses in areas that are less accepting to minority group, they create a situation that will cause fear to the majority or dominant group in such that this group may end up truly selling their houses at a lower price.

This fear is promoted by telling this dominant group that the minority group is soon going to invade their neighbourhood. They may promote fear by telling them about criminal activities that are going to increase or take place when the minority group moves to the neighborhood. For this reason the dominant group end up selling their houses at a lower price and the broker buys them at that price but sell them at a higher price to the minority group which is dying to get into a safe and less crowded neighborhood.