Questions and Answers
What are REALTORS obligated to do?
What does the Code of Ethics obligate REALTORS to disclose?
What duty do REALTORS owe to all persons?
honesty
A REALTOR must disclose that an accepted offer exists on a property that is continuing to be shown to brokers seeking cooperation.
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What does the Code of Ethics prohibit REALTORS from doing?
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Which information is NOT considered confidential?
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REALTORS are required to present all offers until closing, unless the owner waives the right.
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What must listing agents advise sellers about?
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REALTORS could face charges if they misrepresent the true consideration in any document.
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What does the listing broker have a duty to disclose regarding commissions?
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When may REALTORS act as a dual agent?
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What must REALTORS disclose with the seller's permission?
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Study Notes
REALTOR Responsibilities
- REALTORS must discover and disclose adverse factors that are apparent to someone with expertise as required by their licensing authority.
- REALTORS are obligated to disclose relevant factual information concerning transactions.
- Honesty is a fundamental duty owed by REALTORS to all individuals involved in real estate transactions.
Code of Ethics Guidelines
- An accepted offer on a property must be disclosed to brokers seeking cooperation, ensuring transparency in ongoing negotiations.
- Misrepresentation of a listed property's availability for showings or inspections is strictly prohibited by the Code of Ethics.
- REALTORS must present all offers to clients until the closing is finalized, unless waived by the seller.
Confidential Information Regulations
- Latent property defects are not classified as confidential information; they must be disclosed to potential buyers.
- REALTORS must inform sellers about the compensation amounts offered to cooperating brokers, promoting transparency in commission structures.
- Disclosure of dual or variable commission arrangements to cooperating brokers is mandatory for listing brokers.
Dual Agency and Offers
- Dual agency can only occur when both parties—buyer and seller—are fully informed and provide written consent.
- With seller approval, REALTORS must disclose the presence of other offers, enhancing fairness in the negotiation process.
- Misrepresentation of any consideration within documentation can result in REALTORS facing ethical violations or fraud charges.
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Description
Test your knowledge of key concepts in real estate with these flashcards focusing on Chapter 31. Understand the obligations and ethical duties of REALTORS and important terminology necessary for the industry. Perfect for real estate students and professionals alike.
