Why is it called blockbusting?

What is the difference between redlining and blockbusting?

Redlining is generally the discrimination of buyers by the lending industry. Blockbusting is when an agent convinces people in a neighborhood to sell their house because the socioeconomics of the community is negatively changing.

Is panic peddling the same as blockbusting?

Blockbusting, which is also known as panic selling and panic peddling, is an illegal racial discrimination practice wherein real estate brokers attempt to change the racial composition of a neighborhood by encouraging listings and sales in a neighborhood.

What is mortgage puffing?

Real Estate Puffing is the tendency for salespersons and advertising material to exaggerate certain facts about the real estate with the hope of initiating a buy.

What's the meaning of white flight?

Definition of white flight

: the departure of whites from places (such as urban neighborhoods or schools) increasingly or predominantly populated by minorities.

Why is Compton black?

In the 1950s, the city of Compton was nearly all-white. But by the 1970s, it had turned majority Black — in part due to a state-sanctioned predatory real estate practice called blockbusting.

Who was the first black family to move to Compton?

Kraemer, the first black families moved to the area. Compton's growing black population was still largely ignored and neglected by the city's elected officials. Centennial High School was finally built to accommodate a burgeoning student population.

What is another word for the illegal practice of panic selling?

"Panic peddling" or "blockbusting" describes the now-illegal practice of persuading property owners to sell cheaply out of fear that people of another race, ethnicity or income group are going to move in and bring down property values.

What does puffing mean in real estate?

puffing. n. the exaggeration of the good points of a product, a business, real property and the prospects for future rise in value, profits and growth.

What does redlining mean in real estate?

Redlining. Redlining is the practice of denying a creditworthy applicant a loan for housing in a certain neighbor hood even though the applicant may otherwise be eligible for the loan.

What does channeling mean in real estate?

This is the unethical and illegal practice of directing prospective buyers to or steering them away from particular areas and neighborhoods due to minority statuses such as race, national origin, religion, or ancestry. It can also be referred to as steering.

What is redlining in real estate?

Redlining is the name given to a discriminatory lending practice dating back to the 1930s when lenders would draw red lines on maps around neighborhoods that were predominantly Black as a way to deny a mortgage, claiming it was high risk.

What does de facto segregation mean?

During racial integration efforts in schools during the 1960's, “de facto segregation” was a term used to describe a situation in which legislation did not overtly segregate students by race, but nevertheless school segregation continued. ACADEMIC TOPICS.

What is urban flight?

Urban flight definition is the departure of both white and black residents from urban areas to rural areas. White flight was much more prevalent; white residents left cities at a more rapid rate, and in larger numbers.

What does the word urban refer to?

urban. / (ˈɜːbən) / adjective. of, relating to, or constituting a city or town. living in a city or town.

What is the Sherman Antitrust Act in real estate?

Sherman antitrust laws prohibit price-fixing, group boycotting, the allocation of customers or markets, and tie-in agreements. Price fixing is prohibited. This means that competing brokers, real estate governing bodies, or multiple listing organizations cannot agree to set sale conditions, fees, or management rates.

What is mere puffery?

In legalese, puffery refers to an expression of opinion by a seller that isn't made as a representation of fact. It may be a salesperson's exaggeration about a product's quality that isn't a legally enforceable promise.

What are three common forms of real estate dishonesty?

What is reverse redlining?

Redlining is the practice of denying credit to particular neighborhoods on a discriminatory basis. The flip side is reverse redlining, the practice of targeting these same communities or protected classes for predatory lending.

What is redlining and white flight?

Leah Boustan, Professor of Economics at Princeton, attributes white flight both to racism and economic reasons. The business practices of redlining, mortgage discrimination, and racially restrictive covenants contributed to the overcrowding and physical deterioration of areas with large minority populations.

What does blockbusting mean in real estate?

Definition of blockbusting

: profiteering by inducing property owners to sell hastily and often at a loss by appeals to fears of depressed values because of threatened minority encroachment and then reselling at inflated prices.