Steering in real estate is a discriminatory practice that involves channeling homebuyers or renters toward or away from particular neighborhoods based on their race, religion, national origin, familial status, sex, or disability. It's a violation of the Fair Housing Act of 1968 and carries significant legal consequences. This guide will delve into the definition, examples, and implications of steering in the real estate industry.
What is Steering in Real Estate?
Steering is a subtle yet insidious form of housing discrimination. It's not always overt; it can manifest in seemingly innocuous actions or statements made by real estate agents, brokers, or landlords. The key element is the intentional manipulation of housing choices based on protected characteristics. This means that a real estate professional is actively influencing a client's decision, limiting their options, or providing biased information based on their protected characteristics.
The goal of steering is to maintain segregated housing patterns or to direct certain groups into specific neighborhoods, often to the detriment of those being steered. It can involve both positive and negative steering:
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Positive Steering: Encouraging a person to buy or rent in a particular neighborhood because of their race, religion, or other protected characteristic. For example, suggesting a certain neighborhood to a family with young children because it's supposedly safer or more family-friendly, when that recommendation is primarily based on the racial or ethnic makeup of that community.
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Negative Steering: Discouraging a person from buying or renting in a particular neighborhood because of their race, religion, or other protected characteristic. This could involve subtly highlighting negative aspects of a diverse neighborhood, while ignoring similar issues in a predominantly white neighborhood.
How Does Steering Manifest Itself?
Steering is often subtle and difficult to prove. It can take many forms, including:
- Verbal suggestions: Making comments such as, "This neighborhood is better suited for your family," or "You might feel more comfortable in this area."
- Showing only limited properties: A real estate agent might show a client of a particular race only properties in neighborhoods with similar racial demographics, ignoring their requests to see properties in other areas.
- Providing false or misleading information: Exaggerating crime rates or school performance in certain neighborhoods to discourage clients from specific areas.
- Body language and nonverbal cues: Subtle gestures or facial expressions could reveal bias and influence a client's choice.
What are the Consequences of Steering?
Steering is illegal and carries severe penalties. The Fair Housing Act prohibits this discriminatory practice, and violations can result in:
- Civil penalties: Significant fines can be imposed on real estate professionals and companies.
- Legal action: Victims of steering can file lawsuits seeking monetary damages, including compensation for emotional distress and attorney's fees.
- License revocation or suspension: Real estate agents found guilty of steering can lose their licenses, effectively ending their careers.
- Reputational damage: Even if legal action isn't taken, accusations of steering can severely damage a real estate professional's or company's reputation.
Is Steering Always Intentional?
While many cases of steering involve intentional acts of discrimination, unintentional steering is also possible. This might happen due to implicit biases or unconscious prejudices that influence the real estate professional's actions, even without malicious intent. However, unintentional steering is still a violation of the Fair Housing Act, emphasizing the importance of diversity training and awareness programs within the real estate industry.
How Can I Avoid Steering?
Real estate professionals have a legal and ethical responsibility to avoid steering. Here are key steps to prevent this:
- Understand Fair Housing Laws: Thorough knowledge of the Fair Housing Act is crucial.
- Implement Fair Housing Training: Regular training for agents on fair housing practices is essential.
- Document all interactions: Keep detailed records of client interactions, property showings, and communications to ensure transparency.
- Treat all clients equally: Provide the same level of service and access to all potential buyers and renters, regardless of their protected characteristics.
- Be mindful of your language and actions: Avoid making comments or exhibiting behaviors that could be interpreted as steering.
What if I believe I've been a victim of steering?
If you believe you have experienced steering, you should document the details of the incident, including dates, times, locations, and names of individuals involved. You can then file a complaint with the Department of Housing and Urban Development (HUD) or consult with a legal professional specializing in fair housing to explore legal options.
This information is for educational purposes only and does not constitute legal advice. For specific legal counsel, please consult with a qualified attorney.
