Which of the following is considered an illegal practice in real estate?

Study for the Tennessee Real Estate Test with our engaging quizzes. Use flashcards and multiple choice questions, each with hints and explanations, to prepare confidently for your exam day!

Steering is considered an illegal practice in real estate because it involves guiding potential buyers or renters towards or away from certain neighborhoods based on their race, ethnicity, religion, or other protected characteristics. This discriminatory practice violates fair housing laws, which are designed to ensure that individuals have the right to choose where they live without facing bias or coercion from real estate professionals. Steering can perpetuate segregation and limit housing opportunities for marginalized groups, making it a serious legal and ethical violation in the industry.

In contrast, open house events and marketing listings are standard practices in real estate aimed at showcasing properties and attracting potential buyers. Dual agency representation, while complicated and requiring clear disclosures, is legal in many jurisdictions, including Tennessee, as long as everything is handled transparently and ethically. Thus, steering is the only option that definitively constitutes an illegal practice within the realm of real estate.

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