Texas Real Estate State Practice Exam

The term for panic selling often associated with the practice of Blockbusting is correctly identified in your answer. Blockbusting refers to a real estate practice where agents induce homeowners to sell their properties at lower prices by instilling fear that minority groups will be moving into their neighborhood, thus causing property values to decline. This panic selling occurs as homeowners rush to sell their properties, often resulting in a rapid decrease in property values in the area.

In a situation described by choice A, a Broker Exclusive Agent allows an owner to sell their property independently while still remaining under the broker's agreement. However, it does not pertain to the panic selling aspect or the unethical practices surrounding Blockbusting.

The other choices, while related to real estate law and practices, do not specifically address the notion of panic selling linked to Blockbusting. Understanding Blockbusting and its implications on markets and communities is crucial for real estate professionals, as it highlights the importance of ethical practices in sales and the protection of property values.