What term refers to the illegal practice of inducing homeowners to sell their properties by making false representations regarding the entry of certain racial or national origin individuals into the neighborhood?

The term that describes the illegal practice of persuading homeowners to sell their properties through deceptive statements about the influx of individuals of a certain race or national origin into the neighborhood is blockbusting. This practice typically targets racial or ethnic groups and exploits fears of property value declines in order to pressure homeowners into selling their properties at low prices.

Blockbusting plays on the anxieties and prejudices of homeowners by falsely suggesting that a minority group moving into their neighborhood will lead to a decrease in property values. This can then facilitate the buying of those properties at lower prices by real estate agents or investors who hope to resell them at a profit once the neighborhood changes.

Understanding blockbusting is crucial as it is a clear violation of fair housing laws, which aim to protect individuals from discrimination based on race, color, religion, sex, or national origin. Other terms such as redlining refer to discriminatory practices regarding loans and mortgages rather than directly inducing sales through false representations. Discrimination is a broader term that encompasses unfair treatment in various contexts, not limited to the real estate market.