Under fair housing guidelines, what constitutes the prohibited practice of steering?
Steering is the practice of directing buyers toward or away from specific neighborhoods based on their protected class status.
An agent commits steering if they suggest a buyer avoid a neighborhood because of its racial demographic, or if they only show homes in areas matching the buyer's ethnic background.
Texas Property Code §301.021 & TREC Rule §531.19— Texas Fair Housing Act & Discriminatory Practices
Select Your Answer Choice
Exam Explanation
What is Steering in Real Estate?
Steering is a serious violation of both the federal Fair Housing Act and TREC ethical standards. It is one of the most heavily tested compliance topics on the national and state portions of the exam.
Why the Correct Option is Right
Option B is correct because steering involves limiting a home seeker’s choices by channeling them toward or away from neighborhoods based on a protected class (such as race, religion, color, sex, national origin, familial status, or disability) rather than their actual property criteria.
Why the Other Options are Traps
- Option A is a trap because qualification-based filtering (like price or square footage) is standard and legal.
- Option C is a trap because following specific aesthetic requests (e.g., “Tudor-style homes”) is a legal client service.
- Option D is a trap because matching location to job proximity is a standard request.
The Exam Trap
Watch for “well-intentioned” steering in exam questions. An agent who directs a family with young kids away from a neighborhood because “it doesn’t have many kids” is committing steering based on familial status, even if they thought they were helping.
Worked Texas Example
Scenario: Agent Karen is working with a Hispanic couple. Karen assumes they would feel “more comfortable” living in a heavily Hispanic neighborhood in San Antonio, so she only sends them listings in that area and avoids sending listings in nearby master-planned subdivisions. Outcome: Karen is guilty of steering. She restricted their choices and directed them based on national origin/race, which violates fair housing laws and exposes her to civil lawsuits and license revocation.