A licensee hears that a religious group will be opening a commune in a neighborhood. He begins contacting neighbors and telling them about this, encouraging them to list their properties with him before property values decline. This is:

• A. Breach of contract
• B. Property flipping
• C. Quiet enjoyment
• D. Blockbusting

Answer: (D)

Blockbusting is the illegal practice of using fear of changes in neighborhood demographics to prompt homeowners to sell. In this scenario, the licensee learns a religious group plans to open a commune nearby and then contacts neighbors to urge them to list their properties before values supposedly decline. This exploits protected-class status and aims to profit from anticipated price drops, which violates fair housing laws and real estate license ethics. It’s not about failing to honor a contract, which would be breach of contract; it doesn’t describe a tenant’s right to quiet enjoyment; and while property flipping involves rapid resale for profit, the troubling element here is the use of fear about demographic change to drive sales—classic blockbusting.