Realtor Standards of Practice Quiz
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Realtor Standards of Practice Quiz

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Questions and Answers

What is the primary requirement for REALTORS® regarding trust funds?

  • They must keep them in a separate account from their personal funds. (correct)
  • They must invest those funds for personal gain.
  • They can combine them with their own funds if tracked accurately.
  • They should only keep them if they exceed a certain amount.

    • Which statement best describes the intent of Article 9?

  • To ensure all real estate agreements are documented in writing. (correct)
  • To mandate electronic agreements without physical copies.
  • To allow REALTORS® flexibility in documenting agreements.
  • To require REALTORS® to provide verbal agreements only.

    • What is prohibited under Standard of Practice 10-5?

  • Negotiating with clients directly in public places.
  • Employing discriminatory language in communications. (correct)
  • Using technical jargon in agreements.
  • Providing less than full disclosure to clients.

    • What must REALTORS® ensure regarding agreements signed by parties?

    <p>They must provide a copy to each party upon signing.</p> Signup and view all the answers

    Which of the following groups is not protected under the provisions of Standard of Practice 10-5?

    <p>Individuals based on their employment status.</p> Signup and view all the answers

    In an arbitration involving two or more cooperating brokers, what is the maximum amount that can be claimed in dispute?

    <p>The amount paid to the respondent by the listing broker</p> Signup and view all the answers

    What happens if a buyer or tenant representative is compensated by the seller and not by the listing broker?

    <p>The listing broker's commission may be reduced</p> Signup and view all the answers

    When can the listing broker name the first cooperating broker as a third-party respondent?

    <p>When the complaint is brought against the listing broker</p> Signup and view all the answers

    What must a seller or landlord do in order to participate in arbitration with multiple listing brokers?

    <p>Agree to be bound by the decision of the arbitration</p> Signup and view all the answers

    Which of the following best describes the outcome of a hearing panel's decision regarding procuring cause?

    <p>It is legally binding for all parties involved</p> Signup and view all the answers

    What are REALTORS® obligated to discover and disclose?

    <p>Adverse factors reasonably apparent to someone with expertise</p> Signup and view all the answers

    Which standard relates to the disclosure of accepted offers?

    <p>Standard of Practice 3-6</p> Signup and view all the answers

    What is NOT imposed on REALTORS® by Article 2?

    <p>Disclosure of personal earnings</p> Signup and view all the answers

    What must REALTORS® disclose when seeking information from another REALTOR®?

    <p>Their REALTOR® status and client interest</p> Signup and view all the answers

    According to Standard of Practice 3-8, what should REALTORS® avoid misrepresenting?

    <p>The accessibility of property for inspection</p> Signup and view all the answers

    In relation to false considerations, what are REALTORS® prohibited from being a party to?

    <p>The naming of a false consideration in any document</p> Signup and view all the answers

    What does Standard of Practice 3-9 state about access to listed property?

    <p>Access should adhere to the terms established by the owner or seller</p> Signup and view all the answers

    What is the focus of Standard of Practice 2-4?

    <p>Naming a false consideration in documents</p> Signup and view all the answers

    What must REALTORS® do when acting as a buyer/tenant representative regarding benefits of their services?

    <p>Not mislead buyers or tenants about potential savings.</p> Signup and view all the answers

    What is required for REALTORS® to represent both the seller/landlord and buyer/tenant in the same transaction?

    <p>Full disclosure and informed consent from both parties.</p> Signup and view all the answers

    What obligation do REALTORS® have regarding offers and counter-offers when acting as listing brokers?

    <p>To submit offers unless waived in writing by the seller.</p> Signup and view all the answers

    What is the main duty of REALTORS® regarding property management under Standard of Practice 1-10?

    <p>Manage properties with regard to tenant rights and safety.</p> Signup and view all the answers

    What does Standard of Practice 1-11 require REALTORS® to do when managing a client's property?

    <p>Exercise due diligence to protect the property.</p> Signup and view all the answers

    When entering into listing contracts, what must REALTORS® inform sellers/landlords about?

    <p>Their company policies on cooperation and compensation.</p> Signup and view all the answers

    What is the significance of submitting offers and counter-offers objectively?

    <p>It promotes transparency in the transaction process.</p> Signup and view all the answers

    How should REALTORS® handle dual representation between a seller and a buyer?

    <p>They must fully disclose the situation and gain consent from both parties.</p> Signup and view all the answers

    What is deemed 'general' for the purposes of the standard?

    <p>A mailing addressed to all prospects in a geographical area</p> Signup and view all the answers

    What type of solicitation is considered unethical under Article 16?

    <p>Mailing to property owners exclusively listed with another REALTOR®</p> Signup and view all the answers

    What actions are REALTORS® prohibited from taking during professional standards proceedings?

    <p>Threatening legal action against witnesses</p> Signup and view all the answers

    What does Standard of Practice 14-2 specifically prohibit?

    <p>Unauthorized disclosure of findings related to ethics hearings</p> Signup and view all the answers

    Which of the following is not a method of solicitation recognized as unethical?

    <p>General mailings to all residents in a neighborhood</p> Signup and view all the answers

    Under what circumstances may REALTORS® disclose information about ethics findings?

    <p>They are not permitted to disclose any information</p> Signup and view all the answers

    What is a distinguishing feature of 'telephone or personal solicitations' deemed unethical?

    <p>They target owners identified through specific listings</p> Signup and view all the answers

    Which action would not violate Standard of Practice 14-3?

    <p>Following up on an ethics complaint with board personnel</p> Signup and view all the answers

    Study Notes

    Realtor Standards of Practice

    • Realtor Responsibilities to Buyers and Tenants
      • Realtors must not mislead buyers or tenants about potential benefits of using their services.
      • Realtors can represent both the seller/landlord and buyer/tenant in the same transaction, but only with full disclosure and informed consent from both parties.
      • Realtors must submit offers and counter-offers objectively and promptly.
      • When acting as a listing broker, Realtors must continue to submit all offers and counter-offers until the closing or execution of a lease, unless the seller/landlord waives this obligation in writing.

    Realtor Responsibilities to Property Management

    • Property Management Responsibilities
      • Realtors managing property must protect the rights, health, and safety of tenants and visitors.
      • Realtors must exercise due diligence to protect the property from reasonably foreseeable risks and losses.
      • When entering listing contracts, Realtors must advise sellers/landlords of their company's policies regarding cooperation and compensation amounts to be offered.

    Realtor Responsibilities to Other Brokers

    • Disclosure of Offers
      • Realtors must disclose the existence of any accepted offers, including those with unresolved contingencies, to any broker seeking cooperation.
      • When seeking information from another Realtor concerning property under management or listing agreement, Realtors must disclose their status and whether their interest is personal or on behalf of a client.
      • Realtors must not misrepresent the availability of access to show or inspect a listed property.
      • Realtors must not provide access to listed property on terms other than those established by the owner or seller.

    Realtor Responsibilities: Real Estate Employment Practices

    • Harassment in the Workplace
      • Realtors must not use any form of harassing speech, hate speech, epithets, or slurs based on a person's protected characteristics including race, color, religion, sex, disability, familial status, national origin, sexual orientation, or gender identity.

    Realtor Responsibilities: Solicitations & Arbitration

    • Solicitation of Listings

      • General telephone canvassing, mailings, or distributions addressed to all prospects in a given area or profession are considered "general" solicitations.
      • Specific solicitations of property owners who have exclusively listed their property with another Realtor, identified through real estate signs, multiple listing compilations, or other information services, are unethical.
      • Mail or written solicitations of prospects exclusively listed with another Realtor, not part of a general mailing, are unethical.

    • Arbitration and Procuring Cause

      • In arbitration cases, the listing broker can be named as a respondent and arbitration is limited to the amount paid to the respondent by the listing broker, plus any amounts credited or paid to a party to the transaction at the respondent's direction.
      • If the complaint is brought against the listing broker, the listing broker can name the first cooperating broker as a third-party respondent.
      • The hearing panel's decision regarding procuring cause is binding for all parties, regardless of any future claims for compensation related to the transaction.
      • When a buyer or tenant representative is compensated by the seller or landlord, but not by the listing broker, and subsequently claims procuring cause, the listing broker may name the first cooperating broker as a respondent.

    Realtor Responsibilities: Ethics Violations

    • Ethics Hearing Disclosure
      • Realtors must not disclose details of allegations, findings, or decisions in ethics hearings, appeals, or arbitration proceedings.
      • Realtors cannot impede investigations or proceedings by threatening or filing libel or slander suits against parties or witnesses.

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    Related Documents

    2024 National Association of REALTORS® Code of Ethics and Standards of Practice PDF

    Description

    Test your understanding of the responsibilities and duties of Realtors towards both buyers and tenants, as well as property management. This quiz covers essential standards that ensure ethical practices in real estate transactions and property management. Assess your knowledge and stay informed on key practices in the real estate industry.

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