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Steering

National Real Estate Exam glossary · Practice Of Real Estate

Definition

The illegal practice of directing prospective buyers or renters toward or away from particular neighborhoods on the basis of a protected class, thereby influencing the makeup of communities. Even well-intended matching of clients to areas by protected characteristics violates the Fair Housing Act.

Steering in plain English

Steering is when a real-estate agent quietly nudges buyers toward or away from certain neighborhoods because of who they are — their race, religion, family status, or another legally protected trait — instead of just showing them every home that fits their budget and needs. It's illegal because it shapes who ends up living where, keeping neighborhoods segregated. Imagine a librarian who only points certain kids to certain shelves based on their background instead of letting everyone browse the whole library — that's the harm. And it's still against the law even if the agent thinks they're being helpful by "matching" people to areas.

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Practice Steering

A buyer's agent is showing homes to a client. The agent… What is this illegal practice called?

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