What is the practice of inducing a person to lease or purchase by making false representations about a neighborhood's ethnic makeup called?

The practice of inducing a person to lease or purchase by making false representations about a neighborhood's ethnic makeup is known as blockbusting. This unethical tactic typically involves real estate agents or property owners creating panic among existing residents about the perceived decline in property values due to the influx of different ethnic groups. By spreading misleading information, they aim to convince homeowners to sell their properties at lower prices, after which the real estate agents purchase these homes and then sell them at inflated prices to new buyers, often from different demographic backgrounds.

Blockbusting is illegal and violates fair housing laws because it exploits racial fears and promotes segregation. It remains a significant concern in discussions about ethics in real estate and housing practices, emphasizing the importance of honesty and integrity in such transactions. The other choices refer to different forms of unethical or discriminatory practices in real estate, but do not specifically pertain to the act of making false representations about neighborhood demographics.