REALTOR® Code of Ethics Quiz

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Questions and Answers

What is the primary purpose of the REALTOR® Code?

To define the expected high standard of performance from REALTORS®. (correct)
To limit the number of licensed real estate professionals.
To provide a legal framework for real estate transactions.
To protect the financial interests of real estate boards.

When was the REALTOR® Code first approved?

1959 by the Canadian Real Estate Association (CREA).
1913 by the National Association of Real Estate Boards. (correct)
2010 after further consumer feedback.
2004, to incorporate new technologies.

What is considered a fundamental aspect of the REALTOR® Code of Ethics?

Commitment to competence, service, and professional conduct. (correct)
Prioritizing the needs of REALTORS® over the public.
Guaranteeing successful real estate investments.
Maximizing profits for real estate agencies.

How often has the REALTOR® Code been revised?

Many times to accommodate public needs and societal values. (A) Signup and view all the answers

What does the REALTOR® trademark signify according to the content?

An assurance of high-level brokerage service and protection. (A) Signup and view all the answers

Which of the following best describes the nature of the REALTOR® Code?

An evolving plan for professionalism that adapts to changes. (C) Signup and view all the answers

What historical significance does the REALTOR® Code hold for real estate professionals?

It has been viewed as the 'ten commandments' of the real estate industry. (C) Signup and view all the answers

What is a commonality between the REALTOR® Code, the Act, and a board's rules?

They often overlap in their requirements. (A) Signup and view all the answers

Under what circumstance might a real estate registrant be in breach of multiple sets of rules at once?

If their conduct violates multiple sets of rules. (D) Signup and view all the answers

Which action is required for a real estate professional to access the MLS®?

Adopting the bylaws specific to that board. (D) Signup and view all the answers

What is the scope of application of the Realtor Code, in relation to MLS transactions?

It applies to all MLS® transactions and activities. (C) Signup and view all the answers

According to Article 18 of the Standards of Business Practice, how should a REALTOR® conduct their business?

In strict accordance with all statutory and regulatory requirements. (B) Signup and view all the answers

What action must be taken for a real estate board to charge a REALTOR® for a breach under Article 18?

An official body must first determine that the statute or regulation was breached. (A) Signup and view all the answers

What is the main purpose of the rules and regulations established by each real estate board?

To set high standards of professional conduct for its members. (D) Signup and view all the answers

What does the interpretation of Article 18 prohibit a real estate board from doing?

Conducting its own analysis of a member's breach of a statute or regulation. (C) Signup and view all the answers

What is the consequence of violating multiple sets of rules?

The registrant could face multiple forms of discipline for the same misconduct. (B) Signup and view all the answers

A real estate professional is obligated to avoid which of the following when counseling clients?

Error, misrepresentation, or concealment of pertinent facts. (B) Signup and view all the answers

A real estate professional conceals a property's development potential, resulting in a lower sale price. What ethical issue does this primarily represent?

Unethical conduct, despite having honest motives. (B) Signup and view all the answers

A real estate professional advises a vendor to accept a lower offer without disclosing a higher potential offer. This action is considered a breach of:

Fiduciary duty and ethical standards of practice. (B) Signup and view all the answers

A real estate professional becomes aware of a second buyer, for a property, who is willing to pay more. What action must this professional take?

Inform the vendor of the potential second purchaser. (C) Signup and view all the answers

In the Jackson v.Packham Real Estate Ltd. case, what was the outcome for the real estate professional's actions?

The vendor won a lawsuit for damages due to a breach of fiduciary duty and misrepresentation. (C) Signup and view all the answers

According to Article 1, what is a core responsibility of a REALTOR®?

To be well-versed regarding the facts that affect current market conditions. (B) Signup and view all the answers

Which of the following is NOT considered an 'essential fact' a real estate professional should be knowledgeable about?

The client's personal financial history to determine if bank requests can be completed. (B) Signup and view all the answers

What is the potential consequence if a real estate professional fails to verify information provided by a client?

The professional may incur civil liability for damages resulting from the failure. (B) Signup and view all the answers

What does the example involving the notary public or lawyer highlight?

The risks of not verifying basic facts can lead to fraudulent actions and discipline. (D) Signup and view all the answers

In the British Columbia case, what was the REALTOR® Ms.S's primary failure?

Failing to inform the buyers about the marijuana grow op and not investigating the interior. (A) Signup and view all the answers

What is the consequence to the new owners in the Kamloops, BC case?

They will have to pay up to $80,000 to remediate the property. (C) Signup and view all the answers

If a real estate professional acts on incorrect information provided by a client, they:

are deemed negligent if the information was reasonably discoverable. (C) Signup and view all the answers

What should a reasonable, prudent real estate professional do regarding information?

Take steps to obtain information if it is discoverable and prudent. (D) Signup and view all the answers

What constitutes proper due diligence for a real estate professional?

Verifying all the information, independently, if necessary. (D) Signup and view all the answers

Why is it important for a real estate professional to understand general economic trends?

Because economic factors like interest rates can significantly impact the real estate market. (B) Signup and view all the answers

What was the primary ethical breach committed by Ms. S in the described case?

Not disclosing the presence of marijuana plants outside the property. (A) Signup and view all the answers

According to the information, what is a key reason why real estate professionals should perform title searches?

To identify potential encumbrances, interests, or irregularities on the property. (D) Signup and view all the answers

What should a real estate professional do if there is an encumbrance on the title that will not be cleared by the seller?

Include the encumbrance in the purchase contract and recommend buyer seeks professional advice. (D) Signup and view all the answers

Why is maintaining a reputation for integrity particularly important for real estate professionals?

It is paramount, even if it may result in a loss of business. (B) Signup and view all the answers

What is a direct consequence for a real estate professional who fails to disclose important information to a buyer, as demonstrated in the case of Ms.S?

They can face fines and license suspension. (A) Signup and view all the answers

In addition to disclosure, what else should a real estate professional do when aware of an irregularity in a property title?

Advise the client to seek further advice from a lawyer or other professional. (D) Signup and view all the answers

What impact has computer technology and online access to land title registry records had on the responsibilities of real estate professionals?

It has removed most excuses for not conducting a title search. (B) Signup and view all the answers

What does the duty to advise 'fully, candidly, and honestly' require from a real estate professional?

To impart both favorable and unfavorable information, even if it impacts their business. (B) Signup and view all the answers

What is considered the minimum action real estate professionals should take regarding the state of a land title?

To disclose the state of the land title to the purchaser. (C) Signup and view all the answers

According to the content, what is a real estate professional's legal and ethical duty regarding property titles?

To search the title to the real property involved in any transaction. (B) Signup and view all the answers

Flashcards

REALTORS® Code of Ethics

A set of ethical guidelines for real estate professionals, aiming to ensure high standards of conduct and service to the public.

History of the REALTOR® Code

REALTOR® Code was first established by the National Association of Real Estate Boards and later adopted by the Canadian Real Estate Association (CREA).

Evolution of the REALTOR® Code

The REALTOR® Code is regularly updated to address new challenges and technologies in the real estate industry.

Scope of the REALTOR® Code

The REALTOR® Code is meant to be a comprehensive guide for all real estate professionals, encompassing various aspects of the industry.