Questions and Answers
The code of ethics is based on the 'caveat emptor' concept.
False
Realtors have an obligation to protect and promote the interests of their clients regardless of the effect on any other party or realtor.
False
At the time the code of ethics was adopted, there were no real estate licensing laws.
True
The code of ethics was adopted to establish standards of conduct in the industry.
Signup and view all the answers
The golden rules is part of the preamble of the code of ethics.
Signup and view all the answers
If a listing broker tells another broker 'I'll cooperate with you,' the other broker may assume that the listing broker will pay him/her a cooperative commission.
Signup and view all the answers
The code of ethics protects the buying and selling public.
Signup and view all the answers
The code of ethics is divided into three major sections: duties to clients and customers, duties to the public, and duties to Realtors.
Signup and view all the answers
Under no circumstances may a Realtor talk to, negotiate or discuss real estate matters with the client of another Realtor.
Signup and view all the answers
Only members of the public may file a complaint against a Realtor alleging a violation of the code of ethics.
Signup and view all the answers
Arbitration hearings are often based on a procuring cause dispute between Realtors associated with different firms.
Signup and view all the answers
The code requires that Realtors respect the agency relationships that other Realtors have with their clients.
Signup and view all the answers
The code of ethics prohibits exaggeration, misrepresentation and concealment of pertinent facts about the property or the transaction.
Signup and view all the answers
Generally, a licensee can rely on the statements given by the seller unless the licensee has a reason to believe that the information which the seller has given is not true.
Signup and view all the answers
A listing broker may unilaterally change the offer of compensation to a cooperating broker after an offer to purchase is produced.
Signup and view all the answers
The code of ethics requires that Realtors be competent in the discipline in which the Realtor engages.
Signup and view all the answers
Disciplinary action in an ethics hearing can include a fine up to $2,500.00.
Signup and view all the answers
Discipline in an ethics case may not include more than one form of discipline.
Signup and view all the answers
The ethics enforcement process includes an initial screening by the grievance committee.
Signup and view all the answers
If the grievance committee feels potentially unethical conduct may have occurred, they conduct a hearing to determine whether one or more articles of the code have been violated.
Signup and view all the answers
If Realtors undertake to provide services outside of their field of competence, they must fully disclose the facts to their client and/or engage the assistance of one who is competent.
Signup and view all the answers
If an owner whose property is currently exclusively listed with Realtor A initiates a discussion with Realtor B about listing the property after Realtor A's listing expires, Realtor B may not discuss listing that property with the owner until the listing expires.
Signup and view all the answers
The preamble to the code of ethics establishes ideals for which all Realtors should strive.
Signup and view all the answers
Articles of the code of ethics are the broadest statements of ethical principles, and standards of practice support, interpret and amplify the articles under which they are stated.
Signup and view all the answers
Cooperation with other brokers is mandated by the code of ethics unless cooperation is not in the best interests of the client.
Signup and view all the answers
Study Notes
Code of Ethics Overview
- The code of ethics is not based on the "caveat emptor" concept, which emphasizes buyer responsibility.
- Realtors must prioritize protecting and promoting client interests, but this obligation does not supersede responsibilities to other parties.
History and Purpose
- Established prior to the existence of real estate licensing laws, the code aims to set conduct standards within the industry.
- The introduction of the code of ethics was a response to the need for a defined professional standard in real estate practices.
Structure and Content
- The code includes a preamble that emphasizes the "golden rules," outlining the ethical aspirations for Realtors.
- Major sections of the code:
- Duties to clients and customers
- Duties to the public
- Duties to other Realtors
Communication and Negotiation Rules
- Realtors cannot assume cooperative compensation simply based on verbal agreements from listing brokers.
- Realtors are prohibited from interacting or negotiating with clients represented by other Realtors, ensuring respect for agency relationships.
Truthfulness and Transparency
- The code forbids exaggeration, misrepresentation, and concealment of significant property facts in real estate transactions.
- Licensees can depend on seller disclosures unless there is reason to doubt their truthfulness.
Disciplinary Actions
- Realtors can face fines up to $2,500 for violations of the code.
- The ethics enforcement process begins with a grievance committee that screens complaints.
Competence and Professional Conduct
- Realtors are required to work within their areas of competence and must disclose any limitations to clients or seek assistance when necessary.
- Cooperation among brokers is mandated, unless contrary to the best interests of the client.
Final Notes on Ethics Process
- The grievance committee's role is to evaluate claims of unethical behavior, although not all inquiries lead to formal hearings.
- The preamble and articles of the code serve as guiding principles, with specific standards of practice providing detailed support.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Test your knowledge of the Code of Ethics with this true/false quiz. Each question challenges you to determine the validity of statements related to ethical standards in real estate. Perfect for aspiring realtors or anyone interested in ethics!
