Ethics and Brokerage
Which of the following situations could result in arbitration?
A REALTOR claims that she has a right to another REALTOR'S commission.
What is the responsibility of a REALTOR® before entering into a representation agreement?
A REALTOR® has the obligation to make reasonable efforts to determine whether a prospect is subject to a current, valid exclusive agreement to provide the same type of real estate service.
Since inception in 1913, the Code of Ethics has required that members deal with monetary disputes in what manner?
Arbitrate monetary disputes rather than litigate.
Which of the following may be cited in an ethics violation complaint?
Articles
Which of the following statements regarding the structure of the Code of Ethics is correct?
Articles are broad statements of ethical principles, and Standards of Practice interpret, support, and revise the Articles.
If Broker A offers to cooperate with Broker B, ______.
Broker B may not assume the cooperation includes compensation.
The Code of Ethics requires a REALTOR to do which of the following when selling his own unlisted property?
Disclose that he is the owner and that he is a licensee.
Before an agent can collect a commission when working with their buyers, the agent must ______.
Disclose the agency relationship
Define the term ethics.
Ethics are typically defined as standards of conduct applied to a group or society.
Which of the following are enforced by the local association/board of REALTORS?
Ethics complaints and arbitration requests
Ethics complaints are processed by the _______.
Grievance Committee, Professional Standards Committee and Board of Directors.
Which of the following would be a Code of Ethics violation?
Having the seller cancel his current excusive listing prior to entering into an agency agreement with the seller.
Under what conditions can a REALTOR® advertise that a service or item is free?
If all terms regarding availability of the offered product or service are clearly disclosed at the same time.
How does the Code of Ethics benefit the client?
It benefits consumers by imploring licensees to be truthful and honest in all communications and to always place the interests of the client above the licensee's own interests.
Which of the following statements is false regarding the Code of Ethics?
It can be used to enforce licensing laws.
Which of the following statements regarding procuring cause is false?
It is determined by a specific set of rules.
the local association/board.
It is determined by a specific set of rules.
What action does the Grievance Committee take when it determines the issue is suitable for arbitration?
It sends a request to the Chairperson of the Professional Standards Committee.
Which of the following statements is true of mediation?
Mediation can save time and money and is more informal than arbitration.
Define the key features of mediation.
Mediation is a voluntary procedure in which a trained, neutral third party professional assists the parties in arriving at an agreement or resolution.
When leaving a firm, under what conditions can a REALTOR® induce a client to cancel an exclusive agreement?
Never. When leaving a firm, REALTORS® are prohibited from inducing clients of their current firm to cancel exclusive agreements with the firm.
Article 16 states that REALTORS® are prohibited from interfering with exclusive representation or exclusive brokerage relationship agreements of other REALTORS®. Do actions such as a general telephone canvass or general mailing violate this Article?
No. This would be considered as "general" marketing.
Which REALTORS® are allowed to lay a claim to a "sold" property?
Only the listing broker or cooperating broker (selling broker) who participated in the transaction.
What can REALTORS® advertise their services or properties?
Print media Television Radio
Which of the following is a Code of Ethics violation?
Quoting a price other than list price without the seller's permission.
Regarding Internet advertising, ______.
REALTORS may display only professional designations that they are legitimately entitled to use and for which dues are paid current.
Which of the following is a permitted discipline resulting from a violation of the Code of Ethics?
Suspension or termination of MLS privileges
In most monetary disputes, the main focus of the Hearing Panels is to identify what action?
The "procuring cause"
The Preamble of the Code emphasizes what type of land use?
The highest and best use of the land.
What is the judicial recourse, if the parties reach a written agreement in mediation?
The matter cannot be subject to future litigation or arbitration.
What information must be disclosed in all forms of advertisement?
The name of that REALTOR® firm in an apparent manner.
If a REALTOR® is contacted by the client of another REALTOR® regarding the creation of an exclusive relationship to provide the same type of service, under what conditions can that REALTOR® discuss the terms of a future agreement?
They can discuss the terms of a future agreements as long as they do not directly or indirectly initiate the conversation or encourage the client to break an existing contract.
Under what circumstances may REALTORS® reveal confidential client information?
They can reveal confidential information: required by court order, or to prevent the client from committing a crime, or to defend a REALTOR® against an accusation of wrongful conduct.
What must REALTORS® do in response to inquiries from buyers or cooperating brokers?
They must, with the sellers' approval, disclose the existence of offers on the property.
Which of the following is false regarding metatags?
Use of metatags that include the names of other brokerage companies is a reasonable way to divert traffic to a REALTOR's site.
When do the Code of Ethics rules apply?
When a real estate agent is acting as an agent or in legally recognized nonagent capacities, such as transaction broker or facilitator
Can a REALTOR who follows the letter of the law find that he has violated the Code of Ethics?
Yes. Ethical reasoning sometimes goes beyond the basic requirements of the law.
According to Article 3, REALTORS® must disclose the existence of ________ to brokers seeking cooperation.
accepted offers
The Code of Ethics requires listing agents to ______.
advise sellers of the amount of compensation and the amount that will be offered to cooperating brokers.
Since the inception of the Code of Ethics, REALTORS have been required to _______.
arbitrate rather than litigate.
The Preamble of the Code of Ethics contains _______.
aspirational concepts
The Standards of Practice may not _______.
be cited for Code of Ethics violations.
REALTORS may act as a dual agent only when ______.
both parties receive full disclosure and provide written informed consent.
Articles of the Code of Ethics do not address _______.
commission splits for cooperating brokers.
The Hearing Panel may not issue what type of sanctions?
disciplines such as probation suspension and license revocation.
The Code of Ethics obligates REALTORS to ______.
disclose pertinent facts relevant to the transaction.
REALTORS have a duty to ______.
disclose the existence of other offers, with the seller's permission.
The three categories of the Articles include _______.
duties to clients and customers, duties to the public, and duties to REALTORS.
Complaints enforced by the local association/board of REALTORS are _______.
ethics complaints and arbitration requests.
The two types of complaints handled by the Grievance and Professional Standards Committees of the local board/association are _______.
ethics complaints and arbitration requests.
Discipline for a violation of the Code of Ethics may include _______.
expulsion from board membership for one to three years.
The Code of Ethics is referred to as a living document because _______.
it is routinely being reviewed and revised based on changes in the industry.
Confidential information does NOT include ______.
latent property defects.
Concepts in the Preamble include all the following EXCEPT _______.
listing properties at market value.
What is the term given to HTML codes that enable a search engine to identify the site as relevant to certain search words or phrases?
meta tags
What type of disputes fall under arbitration?
monetary disputes Among broker members of the association
The primary purpose of the ______ is to protect the public.
preamble
A REALTOR caused a series of events, without interruption, abandonment or estrangement, that resulted in the sale of a property. The REALTOR may be considered to be _______.
procuring cause.
The Articles of the Code of Ethics stress the REALTOR's obligation to _______.
put agreements in writing and keep them current with written extensions and amendments.
The Articles of the Code of Ethics stress the REALTOR's obligation to _______.
put agreements in writing and keep them updated.
The Code of Ethics prohibits REALTORS from providing services outside their area of expertise. REALTORS should limit their business in all the following areas except _______.
selling listings through one MLS only.
The primary purpose of the ______ is to protect the public.
the Preamble
Offers of compensation are established by ______
the exclusive listing broker.
The Code of Ethics is enforced through _______.
the local association/board.
REALTORS' websites must include ______.
the name of the REALTOR's firm and REALTOR's states of licensure.
Which entity has the responsibility of determining if there has indeed been a violation of the Code of Ethics?
the professional standards committee
"Due process" includes all the following except _______.
the right to appeal to the state licensing authority.
What are the two area of responsibility assigned to the Grievance Committee?
the two area of responsibility are ethics proceedings and arbitration proceedings
A REALTOR must disclose that an accepted offer exists on a property that is continuing to be shown ______.
to brokers seeking cooperation.
REALTORS are required by the Code of Ethics to present all offers ______.
until closing, unless the owner waives the right.
A REALTOR acting as a buyer's agent would be in violation of the Code of Ethics if she ______.
used the purchase agreement to attempt to change the cooperative compensation.
REALTORS may ______.
when contacted by the client of another REALTOR discuss the terms of a listing agreement that is effective upon the expiration of the existing agreement.
Under what circumstances are REALTORS® not obligated to cooperate with other brokers?
when cooperation is not in the best interest of the clients