Real Estate Ethics Review Flashcards by Kevin Brisson

For most of us, our ethics relates to individual moral values that have been influenced by our

Parents
Peers
School experiences
All of the above

All of the Above

How well did you know this?

Not at all

Perfectly

The first Code Of Ethics was adopted in

1908
1913
1925
1974

1913

How well did you know this?

Not at all

Perfectly

Since its inception, the REALTOR® Code of Ethics has required

Respect for other brokers’ exclusive relationships with clients
Cooperation among REALTORS®
Only a
Both a and b

Both a and b

How well did you know this?

Not at all

Perfectly

The current Code Of Ethics is comprised of “Duties to:

Clients, Consumers and MLS Participants
Clients, Customers and Consumers
REALTORS®, Appraisers and the Public
Clients & Customers, the Public and other REALTORS®

Clients & Customers, the Public and other REALTORS®

How well did you know this?

Not at all

Perfectly

The Code of Ethics has been amended over 40 times since 1913 because

The real estate business changes and evolves
The REALTORS® Political Action Committee (RPAC) has voted to do so
State and Federal laws have mandated the changes
The original charter calls for amendments every two years

The real estate business changes and evolves

How well did you know this?

Not at all

Perfectly

REALTORS®

Urge the exclusive representation of clients
Willingly share the fruits of their experience
Strive to eliminate practices which may damage the public
All of the above

All of the above

How well did you know this?

Not at all

Perfectly

In any instance where the Code of Ethics and the law conflict, which takes precedence?

The Code of Ethics
The Law
Decided by an administrative law judge
Decided by a majority vote of the local REALTOR® Board of Directors

The Law

How well did you know this?

Not at all

Perfectly

When entering into a listing contract REALTORS® must advise sellers/landlords of

Company policies regarding compensation and cooperation
The fact that buyer agents will represent them if there is compensation offered
Possible dual agency if a an agent from another firm brings a buyer client
All of the above

Company policies regarding compensation and cooperation

How well did you know this?

Not at all

Perfectly

SOP 3-6 essentially makes all accepted offers

Confidential
A material fact
Unconditional
Contractual

A material fact

How well did you know this?

Not at all

Perfectly

REALTOR® websites must disclose the firm’s name and state(s) of licensure in a readily apparent manner.

True
False

True

How well did you know this?

Not at all

Perfectly

Posting a rant on FaceBook about how a cooperating agent never showed up at a scheduled appointment to show your listing

Is okay if it’s true
Is fine if the agent hits reply and offers an explanation
May be a violation of Article 15 of the COE
May be a violation of Article 17 of the Code of Ethics

May be a violation of Article 15 of the COE

How well did you know this?

Not at all

Perfectly

REALTOR® Alex checks the MLS for new listings and then mails a letter to the owners touting his sales excellence and track record. This action is

Super marketing and speaks to his success
Commonly known as “farming” and is very popular among new agents
Most likely tortious interference with the contract of another broker
A violation of Article 15 of the Code of Ethics

Most likely tortious interference with the contract of another broker

How well did you know this?

Not at all

Perfectly

When Sandra Salesperson previews new listings or open houses she follows up with a letter to the owner asking that they consider hiring her if and when the current listing expires. This is

A great marketing idea
Legal since she’s not interfering with the current listing contract
A violation of Article 16 of the COE
A misdemeanor

A violation of Article 16 of the COE

How well did you know this?

Not at all

Perfectly

When Sandra Salesperson previews new listings or open houses she follows up with a letter to the owner asking that they consider hiring her if and when the current listing expires. This is

A great marketing idea
Legal since she’s not interfering with the current listing contract
A violation of Article 16 of the COE
A misdemeanor

A violation of Article 16 of the COE

How well did you know this?

Not at all

Perfectly

When acting as buyer broker, at first contact with a ‘For Sale By Owner’ it’s a good idea to

Pretend you’re a buyer to get the info you need
Disclose that you’re calling on behalf of your buyer client
Try to get the listing
All of the above

Disclose that you’re calling on behalf of your buyer client

How well did you know this?

Not at all

Perfectly

According to SOP 3-2, any change in compensation offered for cooperative services must be communicated to the other REALTOR®

Within 10 days after submission of offers
Prior to the REALTOR® submitting an offer to purchase the property.
At least 10 days prior to closing
In writing by certified mail

Prior to the REALTOR® submitting an offer to purchase the property.

How well did you know this?

Not at all

Perfectly

Who is responsible for enforcing the REALTOR® Code of Ethics?

The Grievance Committee at local Boards
The Arbitration Committee
The Board of Grievance at the state association
Boards and Associations of REALTORS®

Boards and Associations of REALTORS®

How well did you know this?

Not at all

Perfectly

Who appoints members of the Grievance Committee?

The Executive Officer at the Board or Association of REALTORS®
The REALTOR® membership at large
The President of the Board or Association of REALTORS®
The Professional Standards Committee

The President of the Board or Association of REALTORS®

How well did you know this?

Not at all

Perfectly

The Professional Standards Committee is appointed by

The Executive Officer at the Board or Association of REALTORS®
The REALTOR® membership at large
The President of the Board or Association of REALTORS®
The Grievance Committee

The President of the Board or Association of REALTORS®

How well did you know this?

Not at all

Perfectly

Salespeople, before deciding to file an ethics complaint, should

Read the NAR Code of Ethics and Arbitration Manual
Consult with their manager or principal broker
Consider if it’s worth the time and effort
Write down the pros and cons of complaining about other REALTORS®

Consult with their manager or principal broker

How well did you know this?

Not at all

Perfectly

The party who makes the complaint is called the

Complainant
Respondent
Prevailing party
Protestor

Complainant

How well did you know this?

Not at all

Perfectly

The party who “wins” in an ethics or arbitration hearing is called the

Complainant
Winner
Prevailing party
Non-prevailing party

Prevailing party

How well did you know this?

Not at all

Perfectly

Arbitration is not about wrongdoing.

True
False

True

How well did you know this?

Not at all

Perfectly

Ethics complaints generally are not heard at the local board or association if the parties are from the same firm.

True
False

True

How well did you know this?

Not at all

Perfectly

The Ombudsman’s role is to Provide enhanced communication and problem solving Adjudicate complaints in a quick, informal fashion Determine if an ethics violation has even occurred All of the above

Provide enhanced communication and problem solving

The screening committee who looks at complaints is called the NAR Screening Committee Professional Standards Committee Professional Screening Committee Grievance Committee

Grievance Committee

The Ethics Hearing Panel is comprised of members of the Professional Standards Committee. True False

True

Before deciding on authorized discipline, the Ethics Hearing Panel Determines if the non-prevailing party has had previous offenses Takes a 24 hour recess to discuss its options Builds an additional cases for monetary damages Queries the membership to find out if other members have had issues with this person.

Determines if the non-prevailing party has had previous offenses

The real purpose of authorized discipline in an Ethics Hearing is to educate the respondent and to vindicate the Code of Ethics. True False

True

The NAR requires mandatory mediation before any arbitration hearing may be held. True False

False

When two or more brokers each believe the sales commission should go them, this kind of case ensues at the board: Civil Ethical Criminal Procuring cause

Procuring cause

Agents who believe they were the procuring cause of a closed sale should File a complaint Request mediation at the local board Contact their attorney Consult with their principal broker

Consult with their principal broker

There is no predetermined rule of entitlement in The SOP 11-1 An ethics hearing A procuring cause case Real estate

A procuring cause case

In the Pathways to Professionalism, Respect for Property includes In wintry weather, bring a snow shovel to clean off walkways Allow unaccompanied access to a home that buyer is already in contract to buy When showing property keep, all members of the group together All of the above

When showing property keep, all members of the group together

The Pathways to Professionalism is Voluntary Not all-inclusive Not able to be used as an ethics complaint All of the above

All of the above

In May of 1908 a group of real estate men in the Chicago area formed The National Association of REALTORS® The National Real Estate Group The National Association of Real Estate Exchanges The National Council of Real Estate

The National Association of Real Estate Exchanges

The National Association of REALTORS® is America’s largest trade association Bound by a strict Code of Ethics Comprised of members who are engaged in various real estate activities All of the above

All of the above

Since its inception in 1913 the REALTOR® Code of Ethics has required Membership dues Adherence as a membership rule Arbitration of contractual disputes among members All of the above

Arbitration of contractual disputes among members

To further support and amplify many of the Articles of the Code of Ethics, there are Standards of Application Standards of Performance Standards of Use Standards of Practice

Standards of Practice

The Golden Rule is an aspirational concept noted in Article 1 Article 10 The Preamble The Prologue

The Preamble

Before 1900 there were no real estate license laws in the US. True False

True

The term REALTOR® is synonymous with “real estate licensee.” True False

False

Article 1 of the Code of Ethics reminds us of the fiduciary duties REALTORS® owe their clients as well as the obligation to Protect and promote the interests of customers Treat all parties honestly Follow the Golden Rule Treat customers and clients equally

Treat all parties honestly

Per SOP 1-13 buyer agents need to advise buyer client prospects that The duty of confidentiality does not necessarily extend to sellers Advertising costs are built into the buyer broker fee Being a customer instead of a client gives a buyer more freedom All of the above

The duty of confidentiality does not necessarily extend to sellers

Article 3 of the COE does not include the obligation to share Commissions Fees Compensation All of the above

All of the above

According to SOP 3-6, REALTORS® must disclose all accepted offers to Only others from their own MLS Appraisers who ask for comps as long as the appraiser is a REALTOR® The local assessor’s office Any broker seeking cooperation, even from another area

Any broker seeking cooperation, even from another area

Article 12 of the COE states that REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their Advertising Marketing Other representations All of the above

All of the above

Standard of Practice 15-2 includes the duty to not repeat false or misleading statements about other REALTORS® In letters Online In person All of the above

All of the above

When REALTORS® are contacted by the client of another REALTOR® regarding the creation of an exclusive relationship to provide the same type of service, and REALTORS® have not directly or indirectly initiated such discussions, they may discuss the terms upon which they might enter into a future agreement. True False

True

Without a termination agreement that states otherwise, REALTORS® who leave their current firm cannot Continue to sell real estate in the same territory Ask other agents to leave the firm to start a new brokerage company Induce current clients to cancel their exclusive contracts with the firm Sell real estate for a minimum of 6 months

Induce current clients to cancel their exclusive contracts with the firm

Article 10 of the REALTOR® COE includes how many protected classes? 6 7 8 9

When REALTORS® prepare opinions of real property value or price they must be knowledgeable about the type of property being valued. True False

True

NAR's Code of Ethics imposes duties on Real estate professionals who choose to become REALTORS® Only real estate salespeople and brokers who join NAR All real estate licensees All members of the NDRC

Real estate professionals who choose to become REALTORS®

The Grievance Committee is comprised of members of the REALTOR® board or association REALTOR® board and members of the community Professional Grievance Association Local board, the local Chamber of Commerce and the local community

REALTOR® board or association

When members are selected to serve on the Professional Standards Committee, final approval and confirmation is made by The Executive Officer at the Board or Association of REALTORS® The REALTOR® membership at large The Board of Directors of the Board or Association of REALTORS® The Grievance Committee

The Board of Directors of the Board or Association of REALTORS®

What often resolves questions, differences and concerns among REALTORS®? Open, constructive discussion Private, legal advice Threats of filing a complaint All of the above

Open, constructive discussion

Dispute resolution processes are Quicker Less costly More informal All of the above

All of the above

In an ethics or arbitration hearing the accused party is called the Complainant Perpetrator Respondent Non-prevailing party

Respondent

The party who “loses” in an ethics or arbitration hearing is called the Complainant Loser Prevailing party Non-prevailing party

Non-prevailing party

The types of hearings that can be afforded to REALTORS® are Ethics and Arbitration Ethics and Sanctions Ethics and Depositions Ethics and Summary Proceedings

Ethics and Arbitration

Who can file an ethics complaint? Salespeople who are REALTORS® Brokers who are REALTORS® The public All of the above

All of the above

As of January 1, 2016 Ombudsman Services must be offered to members, clients and consumers. True False

True

Ombudsman Services Are at the discretion of the local board or association of REALTORS® Have been mandatory since January 1, 2016 Are available to only REALTOR® members Must be purchased from the American Bar Association

Have been mandatory since January 1, 2016

The Grievance Committee does not Attend Professional Standards training Rule on the alleged violation Have to be REALTOR® members All of the above

Rule on the alleged violation

After an ethics hearing is complete the hearing panel Goes into a closed session Prepares a findings of fact Votes on who is the prevailing party All of the above

All of the above

Authorized discipline in an Ethics case can include a Letter of reprimand, suspension from MLS and monetary damages Letter of warning, probation for up to one year, and a fine of up to $5,000 Letter of warning, probation for up to one year, and a fine of up to $15,000 None of the above

Letter of warning, probation for up to one year, and a fine of up to $15,000

If a non-prevailing party in an Ethics Hearing has had recent, prior offenses The Hearing Panel refers the discipline to the Board of Directors The Board of Directors must evaluate the possibility of expulsion from membership The Hearing Panel will assess stiffer penalties The President of the Board of Directors helps decide on the discipline

The Hearing Panel will assess stiffer penalties

The real purpose of authorized discipline in an Ethics Hearing is to Teach a lesson to the non-prevailing party Restore faith in the Code of Ethics Separate the ethical members from the non-ethical ones Educate the respondent and to vindicate the Code of Ethics

Educate the respondent and to vindicate the Code of Ethics

A principal broker may file an arbitration complaint against REALTOR® principal broker from another firm REALTOR® principal brokers in more than one firm A REALTOR® firm itself All of the above

All of the above

In an Arbitration complaint, if the parties agree to mediate but then cannot reach a resolution The case is deemed void The parties must default to splitting the commission equally The parties may choose to arbitrate The decision is rendered by a majority vote of the Board of Directors

The parties may choose to arbitrate

The Professional Standards Hearing Panel’s function is to conduct a full “due process” hearing with Sworn testimony Documentary evidence Witnesses All of the Above

All of the Above

Procuring cause is a very complicated issue, and there are no “precedents” since every single case is different True False

True

In Procuring Cause Arbitration Hearings there are no appeals except in regard to due process. True False

True

In an arbitration hearing the party who is not successful in being awarded the money is the Non-prevailing party Loser Perpetrator Unsub

Non-prevailing party

In a procuring cause arbitration hearing Brokers may wind up splitting the monies in dispute Agents may attend with their broker’s permission The prevailing party may appeal All of the above

Agents may attend with their broker’s permission

Knock and announce yourself loudly before entering any closed room demonstrates Respect for the Public. True False

True

Which of these statement applies to Respect to Peers in the Pathways to Professionalism? Notify the listing broker if there seems to be inaccurate information on a listing Follow MLS deadlines for inputting new listings Remove your shoes in homes that have white carpeting Share your lockbox e-key with agents who don’t have one

Notify the listing broker if there seems to be inaccurate information on a listing

The NAR list of recommended, professional courtesies is called Pathways for REALTOR® Practices Pathways for REALTORS® Pathways to Professionalism Pathways to Positive Practice

Pathways to Professionalism

The Pathways to Professionalism includes Respect for Self Respect for Country Respect for Property Respect for Fed Regs

Respect for Property

The REALTOR® Code of Ethics Protects the buying and selling public Protects the general public Promotes a competitive real estate market place All of the above

All of the above

Real Estate Ethics Review Flashcards

(80 cards)