Section 4: Unit 8: Ethical Conduct Requirements for Licencees Exam

Which of these actions is allowed and helps the licensee to avoid illegally practicing law?

Filling in blanks on an association-approved purchase contract

Which of the following is a useful tool in determining the most ethical course of action?

Follow the Golden Rule.

Which of the following is considered unauthorized practice of law?

Interpreting the legal consequences of a client's actions

Why would a code of ethics provide minimum ethical expectations?

It sets a baseline for ethical standards.

Jerome is working with buyer clients when he shows them a house in an up-and-coming neighborhood that'd be perfect for his sister. Which of the following actions is the best way to handle this situation?

Ask how they feel about this home and tell them about the upward trend in neighborhood market value.

Which one of Gerry's statements to a client crosses the line into unauthorized practice of law?

"Most couples take ownership of property as joint tenants, so that's what I'd advise."

Ricky is working for Matt, a buyer client, who is interested in a property at which the listing agent offers compensation to cooperating agents. The listing agent has offered Ricky or any cooperating agent additional compensation if the transaction closes within 40 days. Is this ethical?

Yes, but only if all of the involved parties have full knowledge and provide consent. **Licensees can only accept compensation from more than one party with the full knowledge and consent of all involved parties. That compensation must also go through the brokerage firm.

Which of the following would you need to disclose about a listed property?

Your stepfather is the property owner.