ethics
How often is the NAR Code of Ethics updated?
Annually
According to Article 1 of the Code of Ethics, you owe ______ to all parties in a transaction.
Honesty
Panel member Dick recommended a potential disciplinary action that only state licensing authorities are permitted to hand down when a REALTOR® violates the Code of Ethics. What's the penalty he recommended?
License suspension or termination
Ethics complaints must typically be filed with the local board or REALTORS® association within ______ days.
180
The Code of Ethics is a great tool for ethical practice because while it isn't technically law, it's designed to
Align with the law
Lorenzo had criminal charges filed against him in connection to his real estate practice. NAR policy dictates that his local REALTOR® association may ______.
Investigate and hold a hearing even while his criminal trial is pending
Roz represents a seller who has tentatively accepted a verbal offer for his home. Per Article 9 of the NAR Code of Ethics, Roz should make sure the agreement ______.
Is in writing
Which of these is an acceptable reason to NOT cooperate with another broker?
It's not in the seller's best interests.
Sanjeet, a buyer client, files an ethics complaint against his REALTOR® because he thinks she put her personal interests above his.
Mandatory
New licensee Max is writing up his first offer. Neither his state nor his broker have mandated a specific form to use. Ethically speaking, which form would be the best for Max to use?
The form that sets forth the parties' terms, conditions, and commitments most clearly
If neither REALTOR® in a dispute wishes to mediate, what does the NAR Code of Ethics dictate happens next?
They may decline mediation.
is the NAR's preferred method of dispute resolution.
mediation
Cara is involved in a dispute with another REALTOR®, Sue. Cara prefers ______ because she wants to preserve her working relationship with Sue.
mediation
Which of the following is an effective first tool that a REALTOR board can use in mending relationships and clearing up communication issues?
mediation
_____ is one of the most effective tools a REALTOR® board can use in mending relationships and clearing up communication issues.
mediation
Today, Mary Anne learned that 60 days ago, a fellow REALTOR® misrepresented himself in some advertising. How many days does she have left to file an ethics complaint?
120
REALTOR® Janice wants to research how the NAR enforces the Code of Ethics. Which article of the code should she look to?
17
The NAR Code of Ethics is ______.
Revised regularly to meet the changing needs of the industry
What one type of information are licensees typically required to disclose to potential buyers?
Any material, adverse information that the licensee has actual knowledge of concerning the physical condition of the property
According to the NAR Code of Ethics preamble, the real estate industry is so important that REALTORS® share with their fellow REALTORS® a common ______.
Responsibility for its integrity and honor
Which of these REALTORS® is likely in violation of Article 17 of the NAR Code of Ethics?
Gavin files a lawsuit and refuses to withdraw it in order to arbitrate the matter.
Lily is getting ready for an ethics hearing. She should be prepared to ______.
Give a concise presentation
Disgruntled seller Tiffany wants to file an ethics complaint against her real estate agent, Mark. Mark is not a member of NAR. To which entity may Tiffany file a complaint?
Only the local licensing entity
According to Article 15 of the NAR Code of Ethics, REALTORS® must not knowingly or recklessly make false or misleading statements about _
Other real estate professionals, the market, their businesses, or their business experience
Trevor has been a real estate investor for 15 years, but only recently got his real estate license. He's having trouble connecting with his clients--a first-time buyer couple. He asks fellow firm member Marquis for advice. Marquis, a REALTOR, should
Share his expertise to help Trevor determine the best approach for working with these buyers
REALTOR® Peri submitted her client's offer to a listing broker yesterday and the broker called this morning to say that the offer was accepted. What can Peri safely assume about her commission?
She can discuss it with the broker.
Kesha is filing an ethics complaint against Marco. She should be sure to ______.
Specify the article she believes Marco violated
Courtney is filing an ethics complaint against Matthew. She must make sure to _
Specify the article she believes Matthew violated
The seller client Veronica represents scheduled the buyer-requested repairs, but due to inclement weather, the repairs won't be completed until the day after closing. What should Veronica do?
Tell the buyer's agent that the repair will be finished after closing.
What's the purpose of the NAR Code of Ethics preamble?
To let all who read it know what they can expect of REALTORS®
REALTORS® must be honest and truthful in their real estate communications and present a(n) ______ in their ads and marketing.
True picture
Ellen switched brokers last fall. Her former broker never paid her for her last deal with him, so she filed a complaint against him.
Voluntary
Lisa, a buyer, filed an ethics complaint against REALTOR® Sam. Lisa requested arbitration. Must Sam comply?
Yes, as long as Lisa agrees to be bound by the panel's decision.
Did Monet cross any ethical lines?
Yes; she failed to represent her clients' best interests.
Has Craig behaved ethically?
No; Craig's comments undermined Corina's relationship with her listing agent.
Cheryl filed an ethics complaint against Stan. The circumstances surrounding the complaint call for voluntary arbitration. Which party has the right to decline arbitration?
Stan
As a member of the NAR, REALTORS® should know about laws, proposed legislation, government relations, public policies, and
The real estate market's current conditions
REALTOR® Mike's high school buddy Trent recently became licensed. Trent has a history of drinking too much at parties that Mike's attended in the past, though Trent recently told Mike that he quit drinking. Regardless, Mike warns his colleagues to be careful if they end up working with Trent. Mike has likely ______.
Violated the Code of Ethics
Kelly wants to present herself as the most ethical agent ever. With whom should she apply the principles of the Code of Ethics?
With everyone in both her personal and professional lives
You've listed a condo and just received an offer from a notoriously unethical broker. According to the NAR Code of Ethics, which of the following is an acceptable reason not to cooperate with that broker?
Working with the broker isn't in the seller's best interests.
Simone, an ethics-complaint respondent, was found guilty at her ethics hearing. A day after the hearing, she learned that the panel hadn't followed the proper arbitration procedure. Can Simone appeal?
Yes; arbitration can be appealed if there was a procedural error.
Has Prue acted ethically in this scenario?
Yes; she advised Paul about the time constraint, presented a solution, and updated the lease as soon as possible.
Courts rarely cite the Code of Ethics in their decisions.
false
Google is a reliable source of information for agency law.
false
Only the most seasoned real estate agents are equipped to handle ethical dilemmas.
false
REALTOR® websites are exempt from Article 12 guidelines.
false
Jill's seller client told her that his house flooded last year, but that he doesn't want to include this on the property disclosure form because it might lower his property value. What ethical obligation does Jill have?
Be honest with all parties and disclose the history of flooding.
NAR's Code of Ethics outlines the _
Behaviors expected of REALTORS®
Arbitration is ______ all parties.
Binding on
Melissa had a tough showing today and wants to run home, get into her pajamas, and watch movies. As she's getting in her car to go home, she gets a call from a buyer's agent who would like to show another one of her listings that evening. The home is vacant and the seller wants Melissa to attend all showings. What should Melissa do?
Confirm the showing and meet the buyer's agent at the property at a mutually agreeable time.
Which of these licensees is likely in violation of Article 17 of the NAR Code of Ethics?
Dorothy files a lawsuit and refuses to withdraw it in order to arbitrate the matter.
In which of the following scenarios is the licensee abiding by the Code of Ethics?
Even though Sam and Lisa have squabbled before, Sam presents her client's offer to his seller client and says nothing about his relationship with Lisa.
You can request a rehearing of an NAR ethics complaint ______.
If new evidence is discovered
The NAR Code of Ethics is ___
Revised regularly to meet the changing needs of the industry
REALTORS® may only be disciplined if they violate the Code of Ethics; they are immune to other charges.
false
You meet a prospective seller client at the grocery store. In order to remain ethical when it comes to representation, which of the following questions should you ask her?
Are you currently working with another real estate agent or broker and have you signed a representation agreement?"
The property your buyer client is purchasing is the home you grew up in. Your family sold the home 25 years ago.
Disclosure NOT Required
The seller will pay 5% commission if a cooperating broker procures the buyer, and 4% if the seller's broker procures the buyer.
Disclosure Required
There's evidence of water damage underneath the wood paneling in the basement.
Disclosure Required
According to the preamble of NAR's Code of Ethics, "REALTORS® should recognize that the interests of the nation and its citizens require the ______."
Highest and best use of the land and the widest distribution of land ownership
Article 9 of the NAR Code of Ethics requires REALTORS® to assure that, whenever possible, all contracts are ______.
In writing
Kendall is a respondent in an ethics complaint. This means that Kendall __
Is innocent until proven guilty
Marge is a real estate agent, but she isn't a REALTOR®. This means that she ______.
Is not subject to the code
Article 15 According to Article 15 of the Code of Ethics, REALTORS® must refrain from ______.
Making false or misleading statements about other real estate professionals
Sonja believes that she was the procuring cause of a sale at XYZ Realty, so her broker files an ethics complaint on her behalf.
Mandatory
Kimmy is involved in a dispute with another REALTOR, Titus. Cara prefers ______ because she wants to preserve her working relationship with Titus.
Mediation
REALTORS® Rachel and Kourtney each believe that they were the procuring cause of a sale, and are in a dispute over the cooperative broker commission. Rachel hopes they can resolve the dispute via ______, because she wants to preserve her working relationship with Kourtney.
Mediation
is one of the most effective tools a REALTOR® board can use in mending relationships and clearing up communication issues.
Mediation
Which of the following describes a benefit of mediation?
Mediation can clear up misunderstandings and preserve working relationships.
Which of the following statements is true about the mediation process?
Mediation is less costly than arbitration.
Jean, a REALTOR®, is preparing ad copy for her latest real estate listing. One of the reasons she needs to be careful when constructing her ad is because ______.
Most laypersons don't know what's required in advertising, so they can be easily misled
Listing broker Randy tells his seller client that he'll reduce her commission by 1.5% if an agent in his firm procures the buyer. Randy ______.
Must disclose the agreement
Listing broker Raul has agreed to reduce the seller's commission by 1% if an agent in his firm procures the buyer. Raul
Must disclose the agreement
Way back in the beginning of your course, you learned that, in order to provide information to your local REALTOR® association and facilitate reporting of your NAR Ethics requirement for this course, you'd need to enter your ______ on your course affidavit upon completion of your course.
NRDS ID
Charlie's seller client asked him to pass along any offers to her, even after her property went under contract. Four days before closing, an offer arrived in Charlie's inbox. What should Charlie do?
Present the offer to the seller.
Even after Edward's listing was under contract, the seller called and asked him to present any additional offers that came in. A week before closing, an offer arrives in Edward's inbox. What should he do?
Present the offer to the seller.
Regarding the NAR Code of Ethics, it's true that
REALTORS must comply with the Code of Ethics as a basis of membership.
Ben just became a REALTOR. He's glad that he agreed to abide by the Code of Ethics, because he knows that _
Real estate agents are among the least trusted professionals in the U.S. and he wants to change that perception
Phil is a new REALTOR®. He was excited to join and NAR and abide by the Code of Ethics because
Real estate agents are among the least trusted professionals in the U.S. and he wants to change that perception
Phil is a new REALTOR®. He was excited to join and NAR and abide by the Code of Ethics because ______.
Real estate agents are among the least trusted professionals in the U.S. and he wants to change that perception
According to the NAR Code of Ethics preamble, the real estate industry is so important that REALTORS® share with their fellow REALTORS® a common
Responsibility for its integrity and honor
Courtney is filing an ethics complaint against Matthew. She must make sure to ______.
Specify the article she believes Matthew violated
REALTOR® Sharlene found out that one of her friends, Nick, became a licensee. Sharlene heard that Nick and his wife are going through a nasty divorce, and Nick has been drinking a lot. She told her firm colleagues to be careful if they end up working with him. Sharlene has likely
Violated the Code of Ethics
Trinity is updating her website, business cards, and advertising to include her recently earned credentials. Her website looks a little bare, so she also adds the credential she's currently working on. Has she committed any ethical violations?
Yes; all sources of information, such as her website, must accurately reflect her current credentials.
Which of the following statements is true regarding ethics complaints?
You should try open communication as a first step in conflict resolution.
You might be crossing an ethical line if you report that __
A broker was arrested for drunk driving
The Code of Ethics isn't legislated at the state or federal levels, but it's designed to ______ the law.
Align with
NAR's Code of Ethics outlines the
Behaviors expected of REALTORS®
Frasier received two offers for his seller client's listing at the same sales price. He should advise the seller to ______.
Consider all aspects of the offer, not simply the price
You're part owner of the title company you recommended to your buyer client.
Disclosure Required
Article 3 of the NAR Code of Ethics requires REALTORS® to cooperate with other brokers, except when ______.
Doing so would not be in the client's best interest
Carly's latest ad features listings by other agents. She didn't get consent from the other agents to use their listings, because she figured it didn't really matter. Carly's ads could be considered
False advertising
The Code of Ethics prohibits REALTORS® from knowingly or recklessly making ______ other real estate professionals.
False or misleading statements about
The NAR Code of Ethics preamble states, "REALTORS® should recognize that the interests of the nation and its citizens require the ______."
Highest and best use of the land and the widest distribution of land ownership
Ethically speaking, all agreements regarding a real estate transaction should be ______.
In writing
Gary, a REALTOR®, is in a dispute with April, who's a licensed real estate professional but not a member of NAR. This means that April
Is not subject to the Code of Ethics
Misty is sending postcards to her contact list and includes an old lead, Hank, who is currently working with Judy, another licensee. Misty has no knowledge of Hank and Judy's relationship. Which of the following options is true?
Misty is allowed to make general mailings as long as she's unaware of Hank's relationship with Judy.
Which of the following statements about real estate ethics is true?
Real estate agents are among the least-trusted professionals.
Per Standard of Practice 9-1, what should REALTORS® use in order to ensure that transaction documents are kept current at all times?
Reasonable care
REALTOR® Shawna is cooperating with a listing broker. What does Shawna need to know concerning her commission?
There's no obligation to share commissions.
It's important for all licensees, whether or not they're REALTORS®, to raise the bar on ethical practice.
true
You're dropping your child off at school when you meet Jane, a prospective seller client, for the first time. Which of the following questions should you ask in order to meet your ethical obligations regarding representation?
"Are you already working with another broker? Have you signed a representation agreement?"
Ginger just learned that two months ago, a fellow REALTOR® misrepresented himself in a transaction. There's no way she would've known this without having the information she received today. How many days does she have left to file an ethics complaint?
180
If you report that ______, you might be crossing an ethical line.
A broker was arrested for drunk driving
Rodrigo filed an ethics complaint with his local board of REALTORS®. He cited the two articles that he believes the REALTOR violated. What other mandatory information must he include?
A description of the circumstances surrounding the complaint
Paulo includes ______ in his sales contracts so that the parties have an avenue for dispute resolution if the deal goes sour.
A mandatory arbitration agreement
Erica had an exhausting day and couldn't wait to go home and take a bubble bath. As she was leaving the office, she got a call from a buyer's agent who wanted to show her listing that evening. The home was vacant and the seller had asked Erica to be present for all showings. Erica should ______
Tell the buyer's agent that the showing is on, and she'll meet him there at a mutually agreeable time
Ava is one of the members of a REALTOR® ethics hearing panel. They've finished their deliberations and are ready to make a penalty recommendation. Which of the following is a potential disciplinary action they can recommend the board take against the member?
Additional education
REALTOR® Jackie is a complainant in an ethics complaint. As long as the respondent agrees, Jackie's confident that they'll be able to mediate the matter. How is Jackie so sure?
All local boards must offer mediation in otherwise arbitrable matters.
If you agree to cooperate with another broker because it's best for your client, it's assumed that _
Any commission sharing will be discussed and isn't a requirement of cooperation
If you agree to cooperate with another broker because it's best for your client, it's assumed that ______.
Any commission sharing will be discussed and isn't a requirement of cooperation
Considering that 55% of consumers still don't understand the differences between agency relationships, licensees should ______.
Apply the Code of Ethics to their real estate practice
Which of these is a benefit of mediation?
Arbitration can be contentious and end professional relationships, whereas mediation can clear up misunderstandings and preserve working relationships.
Which of the following is true regarding the NAR Code of Ethics?
As a basis of membership, all REALTORS® must comply with the Code of Ethics.
The NAR Professional Standards Committee releases ______ to help REALTORS® understand the ethical obligations they agree to when they join NAR.
Case interpretations
Leo is filing an ethics complaint against fellow REALTOR® Kate. When he files his complaint, Leo must remember to _
Cite the article Kate violated
Harvey is a respondent in an ethics complaint. He is ______.
Considered innocent until proven guilty
The NAR Code of Ethics preamble states that REALTORS® should know about proposed and existing laws, public policies, government relations, and
Current market conditions
Since loyalty is inherently divided in dual agency transactions, licensees can maintain ethical behavior by ______ information whenever possible.
Disclosing
The NAR Code of Ethics is based on and references the __
Golden Rule
Frasier was called to appear before a hearing panel due to an ethics complaint that was filed against him. His broker, Nancy, is trying to cheer him up. She reminds him that one of the benefits of arbitration is that ______.
He'll be able to put this all behind him as soon as the hearing is concluded, since the panel's decision is final.
Which acronym can be helpful in determining whether a fact about a property should be disclosed?
MAAP
REALTOR® Irina is writing an ad for her new listing. One of the reasons she needs to be careful with her wording is because _
Most members of the public don't know what's required in advertising, so they can be easily misled
Marsha holds an Ethics Refresher training every Spring at her brokerage. She knows that ethics are tricky to navigate, especially considering that __
Nearly a third of REALTORS have fewer than two years' experience
Marsha holds an Ethics Refresher training every Spring at her brokerage. She knows that ethics are tricky to navigate, especially considering that ______.
Nearly a third of REALTORS have fewer than two years' experience
Talk to the Hand, Joe Broker Joe received another offer for his client's listing one week before the current contract on it was set to close. His client specifically told him last week and jotted a note to him that she was excited to close, and that if any other offers happened to come in, she didn't want to hear about them, no matter how good they were. The offer in Joe's hand was for $20,000 more than the current buyer was going to pay, so when Joe told the offering agent, Marisa, that his client wouldn't consider the offer, she complained to the REALTOR® board that Joe was violating Article 3 of the Code of Ethics by refusing to cooperate with her. Does Marisa have a case?
No; Joe's client told him she doesn't want to see any other offers, and it's in her best interests to abide by her wishes.
Has Lewis behaved ethically?
No; he misrepresented himself and his qualifications.
Jasmine is not a REALTOR®, but she is a real estate licensee. Has Jasmine agreed to abide by the conduct outlined in NAR's Code of Ethics?
No; she isn't a REALTOR®, so she isn't bound by NAR's Code of Ethics.
REALTOR® Sheena has a lot of fixer-upper listings, so she paid a photographer to edit the photos on her website in such a way that shows their "potential." According to the NAR Code of Ethics, is this acceptable?
No; the altered photos do not present a true picture of the properties
What do you think? Did the duo demonstrate ethical behavior?
No; they limited cooperating agents' ability to show and sell the property.
Betty listed a property for Veronica under the condition that if someone in Betty's firm procured the buyer, Veronica would owe 2% less commission. To keep up the competition, they won't tell outside agents that. Has Betty behaved ethically?
No; variable-rate commissions must be disclosed to potential cooperating brokers.
Andy, a new agent, has missed three contract deadlines since joining your firm, XYZ Realty, and you overheard someone at the grocery store talking about "that idiot at XYZ Realty." What should you do?
Offer to help him.
Leona is working with four rather difficult clients, but doesn't want to call it quits unless it's absolutely necessary. To which of these clients should she probably say goodbye?
Phil, an investor who swore at her and called her lazy and incompetent when his offer wasn't accepted
Malcolm is a new agent and he's been struggling. This week, he missed his third showing. You're concerned that his flubs are going to tarnish your brokerage's reputation. What should you do?
Pull Malcolm aside and offer to help him.
NAR just hired Fiona to film some TV ads to highlight the association. Based on the NAR's goals, on what should Fiona's advertising focus?
The NAR's high ethical standards for its members
Felicity's referral deal from out of state fell through, and the out-of-state broker filed an ethics complaint about her. What do we know is true about this situation?
They must arbitrate if the out-of-state broker agrees to travel to Felicity's board and abide by the panel's decision.
When a local board of REALTORS® requires that disputes go to mediation first rather than to arbitration, what does this mean for the REALTORS® associated with that board?
They're obligated to abide by the requirement.
Beverly, a buyer, filed a complaint against a listing broker when she learned that he'd never presented her offer to the seller.
Voluntary
How Did Steven Do? Steven's neighbor, Phyllis, contacted him and asked if he'd list her house for sale. Steven had driven by Phyllis's house earlier that morning and remembered there being a for sale sign in her yard. When he asked her if she had a listing agreement with another broker, she replied, "I did, but I fired him a few minutes ago." Satisfied, Steven agreed to meet with her in an hour to sign the paperwork. Has he potentially violated the Code of Ethics?
Yes; he didn't make a reasonable attempt to determine that Phyllis's other listing agreement was indeed terminated.
Shaquan knows that a full-price cash offer is coming in for his listing. Another agent calls and asks if she can show the property tomorrow, but Shaquan says it's unavailable until the weekend in order to give himself a couple of days to present the offer to the seller. Has Shaquan done anything wrong?
Yes; he misrepresented the property's availability.
New salesperson Nicole notices that several non-REALTOR® licensees at her firm include the REALTOR® designation on their business cards and websites, so she decides to do the same. She's planning to join soon anyway. Did she do anything wrong?
Yes; she must actually have the designation in order to use it.
Hoping to get some listings, REALTOR® Tony sent out "sold" postcards for properties in the geographic areas he liked to serve, even though he hadn't sold those properties himself. The postcard included his contact information, his brokerage's name, and the REALTOR® logo. Has Tony committed any ethical violations?
Yes; the postcard leads consumers to believe that Tony had something to do with the featured sales.
About half of all REALTORS® have less than two years' experience.
false
______ is the NAR's preferred method of dispute resolution.
mediation
What's the one purpose of the preamble to the Code of Ethics?
to summarize the NAR Code of Ethics and the fundamental duties of REALTORS®
Only REALTORS® who participated in a transaction as a listing or cooperating broker may claim to have "sold" a property.
true
REALTORS® may only use and display professional designations they've actually earned.
true
Real estate agents are among the least-trusted professionals.
true
Real estate transactions often present ethical predicaments due to their financial risks and inherent complexity.
true
