PSI New Jersey Real Estate State Practice Exam

Disable ads (and more) with a membership for a one time $2.99 payment

Prepare for the New Jersey Real Estate Exam. Ace your test with comprehensive multiple-choice questions. Each question includes detailed explanations and hints. Start studying today and boost your confidence!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

When a property owner sells their property under pressure due to demographic shifts, this is an example of which unethical practice?

Predatory lending
Redlining
Blockbusting
Panic selling

The correct answer is: Blockbusting

When a property owner sells their property under pressure due to demographic shifts, this scenario exemplifies blockbusting. Blockbusting is a practice where real estate agents or agencies persuade property owners to sell their homes at lower prices by instilling fear that minority groups will soon be moving into the neighborhood, thus depreciating property values. This unethical tactic exploits the anxieties of homeowners regarding changing demographics and can lead to a rapid turnover of property ownership in a community. Understanding this concept is crucial for recognizing how demographic changes can be manipulated in real estate transactions, highlighting the importance of ethics in real estate practices to protect both sellers and the integrity of neighborhoods.