Questions and Answers
REALTORS are obligated to ______.
discover and disclose adverse factors reasonably apparent to someone with expertise in areas required by their real estate licensing authority.
REALTORS are obligated to ______.
provide true consideration in any document, unless naming of an obviously nominal consideration.
Regarding commissions, the listing broker has a duty to disclose ______.
to cooperating brokers, the existence of dual or variable rate commission arrangements.
Offers of compensation are established by ______.
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The Code of Ethics obligates REALTORS to ______.
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REALTORS are required by the Code of Ethics to present all offers ______.
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The Code of Ethics prohibits listing agents from ______.
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A REALTOR must disclose that an accepted offer exists on a property that is continuing to be shown ______.
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When dual or variable rate commission arrangements are made, the listing broker is obligated to do all the following EXCEPT ______.
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Based on the Code of Ethics, REALTORS are required to do all of the following EXCEPT ______.
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REALTORS have a duty to disclose ______.
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REALTORS could be found in violation of the Code of Ethics and being charged with fraud if they ______.
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REALTORS owe to all persons the duty of ______.
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REALTORS are obligated to ______.
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REALTORS are required by the Code of Ethics to present all offers ______.
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REALTORS have a duty to ______.
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Discovering latent defects is required by the Code of Ethics.
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Study Notes
REALTORS' Obligations
- REALTORS must discover and disclose adverse factors that are reasonably apparent, as mandated by their licensing authority.
- Accurate consideration must be provided in any document, unless the consideration is nominal.
- The existence of dual or variable rate commission arrangements needs to be disclosed to cooperating brokers.
Commissions and Offers
- The exclusive listing broker establishes offers of compensation.
- REALTORS are required to disclose pertinent facts relevant to the transaction under the Code of Ethics.
- All offers must be presented until the closing unless the owner has waived this right.
Ethical Standards
- Listing agents cannot advise sellers that legal counsel is unnecessary, emphasizing the importance of legal advice.
- REALTORS must inform brokers seeking cooperation about the existence of an accepted offer on a property still being shown.
- Dual or variable rate commission arrangements require disclosure, but they do not obligate the listing broker to compensate cooperating brokers.
Violations and Duties
- Misrepresentation of true consideration in documents can lead to violations of the Code of Ethics, classified as fraud.
- Honesty is a fundamental duty owed by REALTORS to all individuals, highlighting the ethical expectations in real estate transactions.
- REALTORS must also disclose the existence of other offers to potential buyers, with permission from the seller.
Exceptions to Requirements
- Discovering latent defects is not a requirement outlined in the Code of Ethics, distinguishing between necessary disclosure and investigative duties.
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Description
Test your knowledge on the obligations and duties of REALTORS as outlined in Chapter 45. This quiz covers essential concepts including disclosures and considerations in real estate practices. Perfect for studying key regulations in the field of real estate.
