Code of Ethics Flashcards
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Questions and Answers

The Code of Ethics is based on the concept of:

  • Let the Public be served. (correct)
  • Protecting the interests of REALTORS®.
  • Maximizing profits for real estate agents.
  • Providing detailed property disclosures.
  • REALTORS®:

  • Must adhere to a strict code of conduct.
  • Do not have to follow any ethical standards.
  • A and B only. (correct)
  • Are licensed professionals in real estate.
  • When was the Code of Ethics adopted?

  • In 1975.
  • In 1960.
  • In 1985.
  • There were no real estate licensing laws. (correct)
  • The Code of Ethics was adopted to establish standards of conduct for the real estate industry.

    <p>True</p> Signup and view all the answers

    The Golden Rule is quoted in the Code's Preamble.

    <p>True</p> Signup and view all the answers

    A listing broker should:

    <p>Suggest a listing price based on comparable market data.</p> Signup and view all the answers

    The Code of Ethics protects:

    <p>The buying and selling public.</p> Signup and view all the answers

    The Code of Ethics has three major sections:

    <p>Duties to Clients and Customers, Duties to the Public, and Duties to REALTORS®.</p> Signup and view all the answers

    Article 2 prohibits exaggeration, misrepresentation, or concealment of pertinent facts.

    <p>True</p> Signup and view all the answers

    Who can file an ethics complaint against a REALTOR®?

    <p>Both A and B.</p> Signup and view all the answers

    Arbitration hearings are often based on:

    <p>Procuring cause disputes between REALTORS® associated with different firms.</p> Signup and view all the answers

    The Code requires that REALTORS® respect:

    <p>Exclusivity of relationships other REALTORS® have with their clients.</p> Signup and view all the answers

    The Code prohibits exaggeration, misrepresentation and concealment of pertinent facts about the property or the transaction.

    <p>True</p> Signup and view all the answers

    Licensees can generally rely on the statements of the seller unless the licensee has reason to believe the information is not true.

    <p>True</p> Signup and view all the answers

    When may a listing broker change her offer of compensation to a cooperating broker?

    <p>Prior to the cooperating broker producing an offer to purchase.</p> Signup and view all the answers

    REALTORS® must discover and disclose:

    <p>Adverse factors reasonably apparent to someone with expertise in those areas required by their real estate licensing authority.</p> Signup and view all the answers

    Disciplinary action in an ethics hearing can include:

    <p>A letter of reprimand.</p> Signup and view all the answers

    Disciplinary action in an ethics hearing can include:

    <p>More than one form of discipline.</p> Signup and view all the answers

    The ethics enforcement process includes initial screening of complaints by the:

    <p>Grievance Committee.</p> Signup and view all the answers

    If the Grievance Committee concludes potentially unethical conduct may have occurred, they forward the complaint to the:

    <p>Professional Standards Committee for hearing.</p> Signup and view all the answers

    Under the Code, a copy of an offer to purchase must be given to the buyer:

    <p>Upon the buyer signing the offer.</p> Signup and view all the answers

    The Code requires that REALTORS®' advertising clearly identify:

    <p>The member's professional status or status as a REALTOR®.</p> Signup and view all the answers

    The Preamble to the Code:

    <p>Establishes ideals which all REALTORS® should strive to meet.</p> Signup and view all the answers

    Articles of the Code of Ethics are broad statements of ethical principles and the Standards of Practice support, interpret and amplify the respective Articles.

    <p>True</p> Signup and view all the answers

    A 'general' mailing to all homes in an area:

    <p>Is not unethical even if the mailing reaches owners whose property is exclusively listed with other brokers.</p> Signup and view all the answers

    Study Notes

    Code of Ethics Overview

    • The guiding principle of the Code of Ethics is "Let the Public be served."
    • It was established to set conduct standards within the real estate industry.
    • It originated before any real estate licensing laws were put in place.

    REALTORS® Responsibilities

    • REALTORS® must adhere to ethical guidelines that protect the public during real estate transactions.
    • They should suggest listing prices based on comparable market data.
    • REALTORS® must respect exclusive relationships held by other REALTORS® with their clients.

    Structure of the Code

    • Comprised of three major sections:
      • Duties to Clients and Customers
      • Duties to the Public
      • Duties to REALTORS®

    Key Articles and Requirements

    • Article 2 explicitly prohibits misrepresentation and concealment of crucial facts regarding properties.
    • REALTORS® are obligated to discover and disclose adverse factors that are reasonably apparent according to their expertise.
    • A copy of any offer to purchase must be provided to the buyer upon signing.

    Complaint and Ethics Hearing Process

    • Ethics complaints can be filed by affected parties, including clients and other REALTORS®.
    • Initial complaints are screened by the Grievance Committee, which decides whether there is sufficient ground for an ethics hearing.
    • If unethical conduct is suspected, grievances are forwarded to the Professional Standards Committee for further review.

    Disciplinary Actions

    • Possible disciplinary actions in an ethics hearing include reprimands or other forms of discipline.
    • Disciplinary actions may address more than one issue at a time.

    Advertising and Public Representation

    • REALTORS®' advertising must clearly indicate their professional status.
    • The Preamble to the Code establishes ideals for REALTORS® to strive towards, fostering ethical behavior across the industry.

    General Practices

    • General mailings to all homes in an area are considered ethical, even if some properties have exclusive listings with other agents.

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    Test your knowledge on the Code of Ethics specific to the real estate industry with these helpful flashcards. Each card focuses on key concepts and historical facts, ensuring you understand the principles that guide REALTORS® and the standards of conduct established. Perfect for students and professionals alike.

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