Law & License

Blockbusting

The illegal practice of inducing owners to sell by suggesting that members of a protected class are moving into the area.

Quick flashcard

What does Blockbusting mean on the Texas real estate exam?

Answer: The illegal practice of inducing owners to sell by suggesting that members of a protected class are moving into the area.

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Blockbusting definition

Blockbusting, also called panic selling, is persuading owners to sell, often at low prices, by claiming that people of a particular protected class are moving into the neighborhood and that values will fall. It violates the Fair Housing Act.

The practice exploits prejudice and fear to generate sales and commissions.

Source basis

Definition checked against the official sources below on .

On the exam

Blockbusting scares owners into selling by playing on protected-class fears.

Exam trap

Blockbusting targets owners to induce selling. Steering targets buyers to channel where they look.

Tested in

Real Estate Practice (10 of 80 National)

From definition to recall

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This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.