Question

James, a real estate sales agent, caused panic selling when he told people that the value in their neighborhood was declining because the majority of the homes had recently been purchased by minorities. What James did was illegal and is called:

Answer 1

James engaged in 'blockbusting,' an illegal practice that promotes racial fear to devalue properties and is prohibited by the Fair Housing Act of 1968.

Step-by-step explanation:

What James did by causing panic selling in his neighborhood by claiming that the presence of minority homeowners would decrease property values is known as blockbusting. This unethical and illegal practice involves real estate agents and speculators promoting racial fear among white homeowners to trigger white flight, resulting in the rapid sale of homes at prices below market value. These properties are then sold to minorities at inflated prices. Blockbusting was prohibited by the Fair Housing Act of 1968 due to its discriminatory nature and the significant harm it caused both communities and the housing market.