Questions and Answers
What does the NAR Code of Ethics encourage real estate professionals to observe?
Name a duty to clients outlined in the NAR Code of Ethics.
Protecting and promoting the interests of the client
Match the duties to the public with their descriptions.
Providing equal services = Non-discriminatory services to all persons Truthful advertising = Being truthful and clear in advertising Expertise limitation = Refraining from providing professional services outside expertise Avoiding legal practice = Avoiding the practice of law
Real estate licensees have both ethical and legal responsibilities to their clients.
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List one example of discrimination still seen today in housing.
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The federal Fair Housing Act was established in _____ (year).
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Which of the following is NOT a protected class under the Federal Fair Housing Act?
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What is one exemption listed under Fair Housing laws?
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Which organization administers the federal Fair Housing Act?
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Study Notes
NAR Code of Ethics
- Establishes standards for professionalism in real estate, promoting the "Golden Rule."
- Outlines duties to clients and the public, ensuring ethical conduct in business practices.
Duties to Clients
- Prioritizes client interests, avoiding misrepresentation and exaggeration.
- Requires cooperation with other brokers and disclosure of any personal interests in properties.
- Mandates proper handling of trust funds and acceptance of commissions.
Duties to the Public
- Ensures equal and non-discriminatory service to all individuals.
- Advises against practicing outside one's expertise and demands honesty in advertising.
- Prohibits misleading statements regarding competitors and legal practices.
Ethics and Fair Housing
- Real estate professionals hold both ethical and legal obligations concerning Fair Housing.
Current Discrimination Examples
- Landlords and sellers may selectively show properties to certain demographics.
- Concerns may arise from sellers regarding neighbor reactions to minority residents.
- Some buyers/renters engage in derogatory remarks about community aspects.
- Discriminatory inquiries about neighborhoods and avoidance of specific areas occur.
Licensee Responsibilities
- Must be knowledgeable about fair housing laws and compliant at all times.
- Ensures accurate record-keeping and continuous education through training seminars.
- Aware of reporting resources for potential misconduct.
Fair Housing Act of 1968
- Prohibits housing discrimination based on race, color, religion, or national origin.
- Landmark case: Jones v. Mayer established no exceptions for racial discrimination.
Protected Classes under the Fair Housing Act
- Includes race, religion, color, national origin, sex, handicap, and familial status.
Fair Housing Exemptions
- Exemptions exist for certain single-family home sales, owner-occupied rentals, and religious organizations under specific conditions.
- Senior housing can be exempt if residents meet age criteria.
Fair Housing Enforcement
- The Fair Housing Act is enforced by the Office of Fair Housing and Equal Opportunity (FHEO) under HUD.
- Complaints regarding discrimination can be filed within one year of the alleged act, with HUD initiating investigations.
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Description
Test your knowledge on the NAR Code of Ethics and the duties of real estate professionals to their clients and the public. This quiz covers essential principles that guide ethical conduct in real estate practices. Get ready to learn and evaluate your understanding of fair housing and ethics!
