Real Estate Continuing Education Update

Industry Update Overview

• 3-hour real estate and appraisal continuing education class
• Covers code of ethics, RPAC, and other association updates
• Includes guest speakers and information on upcoming events

Code of Ethics

• Established in 1908 by National Association of Real Estate Boards
• Sets standards of professional conduct for real estate industry
• Enforceable by Realtor associations
• Covers duties to clients, the public, and other Realtors

Enforcement Process

• Complaints filed with Professional Standards Administrator
• Ombudsman process to facilitate communication
• Grievance Committee evaluates if violation may have occurred
• Hearing Panel determines if violation proven with clear, strong, convincing proof
• Potential Disciplinary Actions: Letter of warning, education, fine, probation, suspension, expulsion

Article 1: Duty to Client

• Pledge to protect and promote client's interests
• Obligation to client is primary, but must treat all parties honestly

Article 3: Duty to Cooperate

• Obligation to cooperate with other brokers, except when not in client's best interest
• Cooperation does not require sharing commissions or compensating another broker

Article 16: Exclusive Relationships

• Prohibition on interfering with exclusive representation/brokerage agreements
• Caution against anti-trust violations when cooperating

Article 2: Disclosure of Facts

• Avoid exaggeration, misrepresentation, or concealment of pertinent facts
• Not required to discover latent defects or matters outside real estate license

Fair Housing (Article 10 & Standard of Practice 105)

• Prohibition on denying equal services or making discriminatory statements
• Expanded protections for sexual orientation, gender identity, etc.
• Restrictions on advertising that indicates preferences or limitations

Article 15: False Statements About Other Professionals

• Prohibition on knowingly or recklessly making false/misleading statements
• Duty to correct or remove false statements made by othersHere are the study notes:

Article 15 Issue

• Agent didn't respond to phone calls during the Sabbath, which is a day of rest in Judaism
• Another agent, "Girl Boss", posted about the unreturned calls on social media, potentially violating Article 15 of the Code of Ethics
• The responding agent explained the situation and clarified that they don't work during the Sabbath

Blind Offers and Discrimination

• Blind offers became popular as a way to avoid volunteering demographic information about a neighborhood
• This practice helps prevent discrimination based on factors like ethnicity, language, or background
• Article 10 of the Code of Ethics prohibits Realtors from discriminating based on certain characteristics

Art of Professionalism and Social Media

• Real estate professionals should carefully consider their online presence and posts
• Ask yourself: "Does it need to be said?" and "Does it increase professionalism in the industry?"
• Responses to negative reviews or comments should be brief and professional

Arbitration

• Article 17 of the Code of Ethics outlines the arbitration process for resolving disputes between Realtors
• The process involves mediation, and if that fails, arbitration through a hearing panel
• The goal of mediation is for both parties to come to an agreement
• The grievance committee reviews the dispute to determine if it's arbitrable and meets the necessary criteria

Procuring Cause

• The procuring cause is the agent who sets in motion the events leading to the sale of a property
• The procuring cause is the one who originates the series of events that result in the sale
• The preponderance of evidence determines who is the procuring cause
• The procuring cause is responsible for getting the buyer and seller together and ensuring the transaction is completed

Case Study: Rosie Realtor

• Rosie Realtor worked with a client, Annie Artist, to show her properties, including fire stations
• Annie Artist ultimately purchased a fire station without Rosie's knowledge
• Rosie Realtor claimed she was the procuring cause and deserved a commission
• The hearing panel reviewed the case and determined that Rosie Realtor was not the procuring cause due to a break in the chain of events
• The client, Annie Artist, had ended the agency agreement with Rosie Realtor and continued with the transaction herself

Industry Update Overview

• A 3-hour real estate and appraisal continuing education class covers code of ethics, RPAC, and other association updates, and features guest speakers and information on upcoming events

Code of Ethics

• Established in 1908 by National Association of Real Estate Boards to set standards of professional conduct for the real estate industry
• Enforceable by Realtor associations, covering duties to clients, the public, and other Realtors

Enforcement Process

• Complaints are filed with the Professional Standards Administrator
• The ombudsman process facilitates communication, followed by a Grievance Committee evaluation to determine if a violation may have occurred
• A Hearing Panel determines if a violation is proven with clear, strong, convincing proof
• Potential Disciplinary Actions include letters of warning, education, fines, probation, suspension, and expulsion

Article 1: Duty to Client

• Realtors pledge to protect and promote client's interests
• Obligation to clients is primary, but they must treat all parties honestly

Article 3: Duty to Cooperate

• Realtors have an obligation to cooperate with other brokers, except when not in the client's best interest
• Cooperation does not require sharing commissions or compensating another broker

Article 16: Exclusive Relationships

• Prohibition on interfering with exclusive representation/brokerage agreements
• Caution against anti-trust violations when cooperating

Article 2: Disclosure of Facts

• Avoid exaggeration, misrepresentation, or concealment of pertinent facts
• Not required to discover latent defects or matters outside real estate license

Fair Housing (Article 10 & Standard of Practice 105)

• Prohibition on denying equal services or making discriminatory statements
• Expanded protections for sexual orientation, gender identity, etc.
• Restrictions on advertising that indicates preferences or limitations

Article 15: False Statements About Other Professionals

• Prohibition on knowingly or recklessly making false/misleading statements
• Duty to correct or remove false statements made by others

Article 15 Issue

• Example of potential Article 15 violation: agent "Girl Boss" posted about another agent's unreturned calls on social media

Blind Offers and Discrimination

• Blind offers help prevent discrimination based on factors like ethnicity, language, or background
• Article 10 of the Code of Ethics prohibits Realtors from discriminating based on certain characteristics

Art of Professionalism and Social Media

• Real estate professionals should carefully consider their online presence and posts
• Considerations for online presence: "Does it need to be said?" and "Does it increase professionalism in the industry?"
• Responses to negative reviews or comments should be brief and professional

Arbitration

• Article 17 of the Code of Ethics outlines the arbitration process for resolving disputes between Realtors
• The process involves mediation, and if that fails, arbitration through a hearing panel
• The goal of mediation is for both parties to come to an agreement
• The grievance committee reviews the dispute to determine if it's arbitrable and meets the necessary criteria

Procuring Cause

• The procuring cause is the agent who sets in motion the events leading to the sale of a property
• The procuring cause originates the series of events that result in the sale
• The preponderance of evidence determines who is the procuring cause
• The procuring cause is responsible for getting the buyer and seller together and ensuring the transaction is completed

Case Study: Rosie Realtor

• Rosie Realtor worked with a client, Annie Artist, to show her properties, including fiduciary duties and obligations to clients

This quiz covers the updates in the real estate industry, including the code of ethics, RPAC, and other association updates, as well as information on upcoming events.