The practice described is steering. Steering is the illegal act of guiding or channeling prospective homebuyers towards or away from certain neighborhoods based on their race, color, religion, national origin, or other protected class. This action limits the buyer's housing choices and violates the Federal Fair Housing Act and the New Jersey Law Against Discrimination. The licensee's conduct of selecting neighborhoods based on the buyer's race is a classic example of steering.

A. Puffing is the legal exaggeration of a property's benefits and is a matter of opinion, not a discriminatory housing practice.

B. Blockbusting is the illegal practice of inducing homeowners to sell by suggesting that members of a protected class are moving into the area.

C. Redlining is the illegal practice by lenders of refusing to make loans in specific geographic areas for discriminatory reasons.

1. New Jersey Administrative Code, Title 11, Chapter 5 (New Jersey Real Estate Commission), Section 11:5-6.4(h)1.ii: This regulation explicitly prohibits steering. It states, "No licensee shall... Engage in any activity which has the purpose or effect of steering any person away from or toward any housing accommodation or neighborhood because of any of the protected classes... 'Steering' shall mean the channeling of prospective buyers or renters to or away from a particular area on the basis of a protected class."

2. U.S. Department of Housing and Urban Development (HUD), "Fair Housing—It's Your Right": HUD defines steering as the act of "deterring a person from buying or renting a home because of their race, color, religion, sex, disability, familial status, or national origin... or otherwise making a home unavailable to them." The scenario in the question is a direct example of this prohibited act.

3. Ling, D. C., & Archer, W. R. (2018). Real Estate Principles: A Value Approach (6th ed.). McGraw-Hill Education. Chapter 10, "Legal and Ethical Environment," discusses fair housing laws, defining steering as the practice of directing minority homeseekers to minority neighborhoods, which is a violation of the Fair Housing Act of 1968.