code of ethics
Who can file an ethics complaint? Only members of the public. Only REALTOR® members of the Association in which the REALTOR® charged holds membership. REALTORS® members of any Association but not members of the public. Anyone - whether a member of the public or a REALTOR®.
Anyone - whether a member of the public or a REALTOR®.
The two types of complaints typically resolved by local Associations are (check two): Arbitration Claims Criminal Complaints Money Claims for Damages Traffic Tickets Ethics Complaints
Arbitration Claims,Ethics Complaints
. When you listed the K's home at $150,000, were you in violation of the Code? Yes. You should not list the property if the CMA does not support the list price. No. You honestly told the sellers what you believed the property's fair market value was.
No. You honestly told the sellers what you believed the property's fair market value was.
What should you say to Tanya? Tell her you did a CMA and that you have comparables at the $150¸000 level. Tell her she's right - the house is overpriced¸ but the seller wouldn't listen to you. Say something like¸ "Yes¸ it's high¸ but I'm sure the seller will come down." Simply discuss the amenities of the property and the listed price.
Simply discuss the amenities of the property and the listed price.
Is Bob in violation of Article 2? Yes. No. Bob owed no obligations to Sheila and Tom because he did not represent them.
Yes.
The main idea of Article 2 is: a. disclosure. b. discovery. c. concealment. d. technical expertise.
a. disclosure.
Article 1 requires REALTORS® to treat all parties: a. fairly and honestly. b. fairly. c. honestly. d. with respect and courtesy.
c. honestly.
Have you ever heard the term "mediation?" What do you think it means? A process by which the Board president tells disputing members what a hearing panel will likely decide. A voluntary process in which a trained neutral party (called a mediator) assists disputing parties to come to a mutually acceptable resolution of their dispute. A mandatory process in which a mediator gives the parties a suggested solution to the dispute.
A voluntary process in which a trained neutral party (called a mediator) assists disputing parties to come to a mutually acceptable resolution of their dispute.
How does Article 2 apply to this case? It doesn't. Article 1 is the appropriate Article for this case. It applies because the facts involved a nearby development that could affect the value and desirability of the property. It would apply only if the builder had a buyer agency agreement with the buyer.
It applies because the facts involved a nearby development that could affect the value and desirability of the property.
Suppose the home is sold for $150,000 to someone who is working with another company's licensee and that buyer is just transferring into town. Later, that buyer realizes that the price she paid was $20,000 more than what any similar property in the area had recently sold for. Would your failure to disclose to the buyer or her representative the fact that no other property had sold for more than $130,000 be a violation of the Code? Yes. You have not been totally honest with the buyer or her representative. No. Your duty is to promote your client's best interest. Your obligation to be honest with a customer does not permit nor require you to suggest that your client's property may be priced over market value.
No. Your duty is to promote your client's best interest. Your obligation to be honest with a customer does not permit nor require you to suggest that your client's property may be priced over market value.
Is Jill and/or Sandy in violation of Article 12? Yes... both are in violation because the name of the firm was not disclosed in the advertising. Only Jill is in violation because it was her phone number. Only Sandy is in violation because she is the broker and she had the listing. Neither are in violation.
Yes... both are in violation because the name of the firm was not disclosed in the advertising.
What was Bob's obligation to Sheila and Tom? None. He did not represent them. To tell them what he believed... whether he had a basis for it or not. None. He told them "I don't know". To be accurate in conveying information about the development. Bob's prefacing his remarks with "I don't know" was not sufficient because he went ahead and gave them information they could reasonably rely on.
To be accurate in conveying information about the development. Bob's prefacing his remarks with "I don't know" was not sufficient because he went ahead and gave them information they could reasonably rely on.
A member can be sanctioned for violating the Pathways to Professionalism. a.True b. False
b. False
The Preamble: a. can be used as a basis to discipline of REALTOR®. b. is based solely on the idea of protecting REALTORS®. c. cannot be used to discipline a REALTOR®. d. is the same as an Article of the Code.
c. cannot be used to discipline a REALTOR
. Article 2 requires REALTORS® to: a. conduct a complete and thorough inspection of the property¸ including electrical¸ plumbing¸ roofs and other systems. b. discover and disclose latent material defects. c. discover and disclose adverse factors only within areas required by the real estate licensing authority. d. have technical expertise in disciplines outside of the real estate profession.
c. discover and disclose adverse factors only within areas required by the real estate licensing authority.
. Was there a better way for Bob to respond? None. He did not represent them. Yes. When he said "I don't know" he should not have continued to give information. No. When he told them "I don't know" they should have realized he might be guessing.
Yes. When he said "I don't know" he should not have continued to give information.
If a REALTOR® is found in violation of the Code, which of the following types of discipline may be imposed (check all that apply): Letter of Reprimand Fine not to exceed $250 Fine not to exceed $15¸000 Community service not to exceed 50 hours Suspension of MLS privileges Education Attendance at Association meetings Letter of Warning
-Letter of Reprimand -Fine not to exceed $250 - Suspension of MLS privileges -Education -Letter of Warning
The three major categories of the Code are (mark the three correct ones): Duties to REALTORS® Duties of Disclosure Duties to Buyers Duties to Clients and Customers Duties to Sellers Duties of Agency Duties to the Public Duties of Honesty
Duties to REALTORS®,Duties to Clients and Customers,Duties to the Public
What should Jake have done when he noticed the incorrect address? Jake should have taken the listing agreement back to June and had her initial the change and given June a copy of the corrected listing agreement. Jake should have used an amendment form to make the correction... had June sign the amendment form... and given her a copy of the amendment form. Either of the above.
Either of the above.
What Standard of Practice under Article 12 applies in this situation? None. This is not an Article 12 problem. Standard of Practice 12-6 (status as owner or REALTOR®). Standard of Practice 12-5 (name of firms in ads). Standard of Practice 12-1 ("free" products or services).
Standard of Practice 12-5 (name of firms in ads).
What Standard of Practice under Article 16 applies to this situation? Standard of Practice 16-6 (discussions with others' clients). Standard of Practice 16-4 (soliciting other's clients). Standard of Practice 16-2 (general mailings). All of the above.
Standard of Practice 16-2 (general mailings).
Is Jake in violation of Article 9? Yes. Jake failed to have the correction to the listing agreement initialed by June and he failed to give June a copy of the corrected listing agreement. No. This was a minor typographical error and June surely would have understood why he corrected it.
Yes. Jake failed to have the correction to the listing agreement initialed by June and he failed to give June a copy of the corrected listing agreement.
When is a "general" mailing an ethical practice? a. At any time¸ so long as MLS or other similar data is not used to target properties currently listed. b. At any time. c. Never. d. With the client's consent.
a. At any time¸ so long as MLS or other similar data is not used to target properties currently listed.
How can Article 12 best be summarized? a. Be truthful in all communications¸ including advertising¸ marketing¸ and other representations. b. Only brokers may advertise. c. Rely on publishers-like newspapers to ensure that your advertising is accurate. d. Endeavor to make your advertising as plausible as possible.
a. Be truthful in all communications¸ including advertising¸ marketing¸ and other representations.
The Preamble to the Code of Ethics is an aspirational introduction to the Code which sets ideals that REALTORS® strive to meet. a. True b. False
a. True
When must a REALTOR® give copies of an agreement to a party? a. Upon their signing or initialing. b. Only upon signing. c. Within 24 hours of signing or initialing. d. Within a reasonable time of signing or initialing.
a. Upon their signing or initialing.
Mediation is: a. a process that can be required at local discretion in which a trained mediator assists the parties in coming to a mutually acceptable resolution of their dispute. b. a voluntary process in which the parties agreement of settlement is non-binding. c. a mandatory process where the parties must settle the dispute. d. a mandatory process in which the parties must attend a settlement hearing before an arbitration hearing panel.
a. a process that can be required at local discretion in which a trained mediator assists the parties in coming to a mutually acceptable resolution of their dispute.
REALTORS® must submit offers: a. within a reasonable time. b. as quickly as possible. c. as required by their office policy. d. no later than 24 hours after receipt.
b. as quickly as possible.
Minor typographical errors, such as a transposed number in an address: a. can be changed by the REALTOR®. b. are unimportant and need not be corrected. c. must be appropriately corrected¸ either by initialing or by using an amendment form¸ properly initialed or executed by all parties.
c. must be appropriately corrected¸ either by initialing or by using an amendment form¸ properly initialed or executed by all parties.
Once a contract for sale is executed by all parties, a REALTOR®: a. has no further obligation to put documents in writing. b. has no responsibility for written documents which are assumed by the broker. c. must use reasonable care to ensure that the documents are kept current by written extensions and amendments.
c. must use reasonable care to ensure that the documents are kept current by written extensions and amendments.
A request for arbitration is initially reviewed by: a. the arbitration hearing panel. b. the professional standards committee. c. the grievance committee. d. the Association's executive officer.
c. the grievance committee.
When must REALTORS® disclose their brokerage relationship? a. Upon first contact¸ to sellers of unlisted property¸ if the REALTOR® is acting as the buyer's agent. b. Upon first contact¸ to sellers' agents or brokers¸ if the REALTOR® is acting as the buyer's agent. c. As soon as practicable¸ to unrepresented buyers¸ if the REALTOR® is acting as the seller's agent. d. All of the above.
d. All of the above.
Which of the following documents are covered by Article 9? a. contracts for sale. b. listing agreements. c. leases. d. all of the above
d. all of the above
Articles of the Code are: a. cited when a REALTOR® is alleged to have violated the Code. b. broad statements of ethical principles. c. supported¸ interpreted and amplified by Standards of Practice. d. all of the above.
d. all of the above.
The two committees which receive, review and resolve ethics complaints are (check two): The Membership Committee The Grievance Committee The Executive Committee The Professional Standards Committee The Board of Directors
The Grievance Committee,The Professional Standards Committee
What was Jake's obligation to June? None. He corrected the typographical error... thereby ensuring a "true picture" to potential purchasers. To have June initial the correction and give June a copy of the corrected listing agreement. To give his broker the corrected copy of the agreement and let his broker take care of any details with June.
To have June initial the correction and give June a copy of the corrected listing agreement.
When entering into a listing agreement, REALTORS® must advise sellers/landlords of: a. any potential to act as a disclosed dual agent. b. the commission rates of all other brokers. c. the price for which the property will sell. d. their educational background and any degrees that they hold.
a. any potential to act as a disclosed dual agent.
An arbitration panel will decide a dispute: a. based on procuring cause. b. based on which REALTOR® showed the property first. c. based on which REALTOR® wrote the successful offer to purchase. d. based on which REALTOR® had a buyer agency agreement.
a. based on procuring cause.
The Code of Ethics is enforced primarily by: a. the National Association of REALTORS®. b. the local circuit courts. c. the small claims courts. d. the local Association of REALTORS®.
a. the National Association of REALTORS®.
. The Code of Ethics: a. was adopted to establish standards of conduct for the industry. b. was based on the concept of "the public be damned". c. was adopted in 1931. d. was adopted long after real estate licensing laws were in existence.
a. was adopted to establish standards of conduct for the industry.
Which of these best captures the main idea of Article 16? a. Solicitation of listings and buyer agency agreements is prohibited in all cases. b. Respect agency and other exclusive relationships other REALTORS® have with their clients. c. The Code addresses interference with agency relationships only. d. You may not interfere with any relationship another REALTOR® has with a member of the public.
b. Respect agency and other exclusive relationships other REALTORS® have with their clients.
Can REALTORS® use the term "free" in their advertising? a. Yes¸ under all circumstances. b. Yes¸ as long as all terms governing the availability of the offered product are clearly disclosed at the same time. c. Yes¸ if the service or product is available for a nominal cost.
b. Yes¸ as long as all terms governing the availability of the offered product are clearly disclosed at the same time.
A REALTOR® has an obligation to: a. disclose facts only about listed property. b. avoid misrepresentation of pertinent facts about the property or the transaction. c. have expertise in every field related to building construction.
b. avoid misrepresentation of pertinent facts about the property or the transaction.
Who can claim to have "sold" property? a. Only listing brokers. b. Only listing brokers may use the word "sold¸" but cooperating brokers may use words like "participated" or "assisted" to describe their role. c. Anyone who participated in the transaction¸ whether as listing broker or cooperating broker. d. Only cooperating brokers.
c. Anyone who participated in the transaction¸ whether as listing broker or cooperating broker.
Which of the following is the most accurate paraphrase of Article 9? a. Contracts for sale must be in writing. b. Agency agreements must be in writing. c. Get everything in writing. d. Oral agreements are not acceptable.
c. Get everything in writing.
When can a REALTOR® deal with the client of another REALTOR® who has an exclusive agreement with the client? a. Never. b. At any time - there are no restrictions on this activity. c. If the client initiates the dealings. d. If the client returns a call after the REALTOR® has initiated the dealings.
c. If the client initiates the dealings.
Article 1 requires REALTORS® to: a. put the client's interests after their own. b. protect and promote the client's interests. c. be honest only with the client. d. keep the client's interests primary and disregard any other obligations.
b. protect and promote the client's interests.
A "due process" hearing includes which of the following (check all that apply): the right to present evidence¸ testimony and witnesses. the right to legal counsel. the right to unlimited postponements. the right to speak with the hearing panel in private. the right to cross-examine the complainant and complainant's witnesses. the right to an impartial peer panel.
-the right to present evidence¸ testimony and witnesses. -the right to legal counsel. -the right to cross-examine the complainant and complainant's witnesses. -the right to an impartial peer panel.
Is Don in violation of Article 16? Yes... Don was soliciting the exlcusive clients of other brokers. No... Article 16 doesn't apply. No... Don conducted a general mailing permissible under Standard of Practice 16-2. Yes... "farm" mailings are unethical.
No... Don conducted a general mailing permissible under Standard of Practice 16-2.
The function of the Professional Standards Committee is to: a. make members attend Association meetings. b. determine whether¸ after a due process hearing¸ the respondents were in violation of the Code by clear¸ strong and convincing evidence. c. serve as an initial screening panel for ethics complaints. d. send possible violations of the Code to the Board of Directors for a due process hearing to determine the discipline to be imposed.
b. determine whether¸ after a due process hearing¸ the respondents were in violation of the Code by clear¸ strong and convincing evidence.
The Grievance Committee's role is to: a. hold hearings and determine whether there was a violation of the Code. The Grievance Committee's role is to: a. hold hearings and determine whether there was a violation of the Code. b. have a preliminary meeting to determine whether there was a possible violation of the Code. c. impose discipline. d. enforce disciplinary action which the hearing panel imposed
b. have a preliminary meeting to determine whether there was a possible violation of the Code.
When real estate licensing laws were established, state legislatures: a. required real estate practitioners to be peddlers. b. looked to the Code of Ethics as a source of standards for of the real estate industry. c. used the medical profession's licensing code as the pattern for the real estate industry. d. had attorneys draft all new rules for the real estate industry.
b. looked to the Code of Ethics as a source of standards for of the real estate industry.
"Pertinent facts" include: a. facts about sellers that buyers might use to their advantage in negotiations. b. physical defects in the property that the seller discussed with the listing broker. c. community matters that do not affect the property being sold. d. any fact about the transaction.
b. physical defects in the property that the seller discussed with the listing broker.
Facts about surrounding properties: a. are never pertinent because they don't relate to the property being sold. b. should be disclosed if they affect the value or desirability of the property being sold. c. should be disclosed only if required by state law. d. none of the above.
b. should be disclosed if they affect the value or desirability of the property being sold.
When advertising unlisted property in which a REALTOR® has an ownership interest: a. the REALTOR® must list the property with their firm. b. the REALTOR® must disclose their interest as an owner or landlord¸ and as a REALTOR® or real estate licensee. c. the REALTOR® has no specific advertising obligations. d. the REALTOR® is bound only by state law and not by the Code.
b. the REALTOR® must disclose their interest as an owner or landlord¸ and as a REALTOR® or real estate licensee.
At the time the REALTOR® Code of Ethics was adopted: a. the real estate industry was well organized and noted for its professionalism. b. there were no real estate licensing laws. c. "Let the public be served" was the motto of the real estate industry.
b. there were no real estate licensing laws.
When can a REALTOR® "solicit" another broker's exclusive listing? a. Never. b. At any time - anti-trust laws prohibit restrictions on such activities. c. If the owner initiates the contact and the REALTOR® has not directly or indirectly initiated the discussion¸ the REALTOR® can discuss the terms of a future listing. d. If the owner does not initiate the contact but the REALTOR® initiates a discussion at a social event¸ the REALTOR® can discuss the terms of a future listing.
c. If the owner initiates the contact and the REALTOR® has not directly or indirectly initiated the discussion¸ the REALTOR® can discuss the terms of a future listing.
"Alternative Dispute Resolution": a. means going to federal courts rather than state courts. b. does not include the use of arbitration or mediation. c. has been mandated since the Code of Ethics was adopted (in the form of arbitration). d. none of the above.
c. has been mandated since the Code of Ethics was adopted (in the form of arbitration).
The offering of premiums or inducements: a. is always unethical. b. is never unethical. c. is not unethical as long as potential recipients have a clear understanding of all terms and conditions of the offer.
c. is not unethical as long as potential recipients have a clear understanding of all terms and conditions of the offer.
The duty of confidentiality: a. does not apply if the client consents to disclosure. b. continues after the termination of the agency relationship. c. does not apply if a court order requires the REALTOR® to disclose information. d. all of the above.
d. all of the above.
The phrase "Under all is the land": a. is the first sentence in the Preamble. b. indicates the all-encompassing nature of the real estate business. c. embodies the idea that land is the foundation of food and shelter and sophisticated aspects of economy and prosperity. d. all of the above.
d. all of the above.
REALTORS® are required to arbitrate: a. all disputes. b. all disputes with other REALTORS®. c. disputes with REALTORS® associated with different firms. d. those disputes specified by Article 17 of the Code of Ethics.
d. those disputes specified by Article 17 of the Code of Ethics.
The idea of "ethics" can mean: a. Morals or personal beliefs. b. Industry practices or standards. c. Religious beliefs. d. Philosophical beliefs. e. All of the above.
e. All of the above.
The concept of procuring cause: a. is based on a legal concept used by the courts for many years. b. considers the entire course of events in a transaction. c. does not have any predetermined rules of entitlement. d. might be stated as "the cause originating a series of events which, without break in their continuity, result in the accomplishment of the prime object. e. all of the above.
e. all of the above.
