Who Is Affected By Real Estate Steering?

January 12, 2011 | Author: | Posted in Real Estate

The majority of people now feel as though the civil rights fight in our country has long since past. Discrimination against ethnic people in areas such as public transportation and restaurants is no longer a problem. A practice still exists among real estate brokers of showing and selling houses based on a person’s ethnicity, although it is a lot less common than it once was, and it is encouraging that our nation has come so far. This practice is called steering.

Two types of steering are normally recognized. The first pertains to the real estate agent’s duties of advisement to his or her clients. Occasionally a real estate agent might advise his or her clients to buy a home in a specific neighborhood solely as a consequence of their actual or perceived race. It is referred to as steering if this happens.

Type two, more than anything else, is an act of omission. It occurs when a real estate agent fails to show his or her clients any homes that meet their desired requirements. This can also entail choosing not to let clients know when a new home goes up on the market within their specified requirements. A client’s actual or perceived racial make-up must be the rationale behind this act of omission. If so, it is thought to be steering.

In order to combat steering and other violations of fair housing rules in the United States, federal regulations are also set up. The Civil Rights Act of 1968, for instance, prohibits discrimination based on ethnicity whenever a sale, rental, or financing of housing occurs. Also known as the Fair Housing Act, the Civil Rights Act of 1968′s subsection 3604 also includes religion, national origin and sex as protected classes against housing discrimination.

Steering is now becoming a thing of the past in today’s real estate market, although in times past, it was quite a dire issue for minorities who wanted equal rights in this country. Federal laws have made steering consequently much less common than it once was as a consequence.

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