Questions and Answers
The Code of Ethics is based on the concept of:
REALTORS®:
When was the Code of Ethics adopted?
The Code of Ethics was adopted to establish standards of conduct for the real estate industry.
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The Golden Rule is quoted in the Code's Preamble.
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A listing broker should:
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The Code of Ethics protects:
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The Code of Ethics has three major sections:
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Article 2 prohibits exaggeration, misrepresentation, or concealment of pertinent facts.
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Who can file an ethics complaint against a REALTOR®?
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Arbitration hearings are often based on:
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The Code requires that REALTORS® respect:
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The Code prohibits exaggeration, misrepresentation and concealment of pertinent facts about the property or the transaction.
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Licensees can generally rely on the statements of the seller unless the licensee has reason to believe the information is not true.
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When may a listing broker change her offer of compensation to a cooperating broker?
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REALTORS® must discover and disclose:
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Disciplinary action in an ethics hearing can include:
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Disciplinary action in an ethics hearing can include:
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The ethics enforcement process includes initial screening of complaints by the:
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If the Grievance Committee concludes potentially unethical conduct may have occurred, they forward the complaint to the:
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Under the Code, a copy of an offer to purchase must be given to the buyer:
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The Code requires that REALTORS®' advertising clearly identify:
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The Preamble to the Code:
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Articles of the Code of Ethics are broad statements of ethical principles and the Standards of Practice support, interpret and amplify the respective Articles.
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A 'general' mailing to all homes in an area:
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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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Description
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.
