Part 10 Flashcards
A broker promises a seller a sales price significantly above market value to secure the listing. What is the primary risk of this practice?
A. It violates the Equal Credit Opportunity Act
B. It may result in a client complaint for deceptive business conduct
C. It leads to inaccurate disclosures under TILA
D. It allows for RESPA penalties
B/ Explanation: Making unrealistic promises is deceptive and risks both client complaints and TREC penalties.
“Buying a listing” by inflating a property’s market value in a CMA violates which ethical obligation?
A. The duty of confidentiality
B. The requirement to present all offers
C. The obligation to use objective, comparable market data
D. The rule against dual agency
C/ Explanation: Ethics require brokers to use fair, comparable data—knowingly inflating value to win a listing is deceptive.
Which action by ABC Realty is most directly related to a potential federal antitrust violation?
A. Discouraging agents from cooperating with XYZ Properties
B. Failing to complete mandatory CE courses
C. Depositing trust funds into a brokerage operating account
D. Providing inaccurate property square footage
A / Explanation: Coordinated refusal to work with a competitor fits the definition of a group boycott—an antitrust violation.
Which of the following is most consistent with ethical CMA development?
A. Using properties that sold over a year ago for context
B. Including only listings that match the desired price
C. Disclosing factors that may bias the CMA
D. Estimating value based on current tax assessments only
C
