The NATIONAL ASSOCIATION OF REALTORS®’ Code of Ethics and Standards of Practice establishes rules for the highest ethical conduct and professionalism. It’s what distinguishes you as REALTORS® from other real estate licensees. Take this quiz to see how well you know your Code.
The Code of Ethics is based on the concept of:
Let the buyer beware.
Let the seller beware.
Let the public be served.
Let the public fend for themselves.
The Code of Ethics was adopted:
To establish standards of conduct for the industry.
Only as "recommendations" for proper conduct.
Long after real estate licensing laws were in existence.
The Preamble to the Code:
Sets out aspirational ideals that REALTORS® should strive to attain.
Can be used as the basis for disciplinary action against a REALTOR®.
Requires REALTORS® to meet the standards set forth in the Preamble.
Is a summary of all the articles included in the Code.
The Code is primarily enforced through:
The NATIONAL ASSOCIATION OF REALTORS®.
State associations of REALTORS®.
Local associations of REALTORS®.
None of the Above.
The two basic types of complaints that are handled by local associations are:
Ethics complaints and license law complaints.
License law complaints and mediation matters.
Ethics complaints and requests for arbitration.
License law complaints and requests for arbitration.
The three committees or groups that are involved in the Code enforcement process are:
Grievance Committee, Appeals Committee, and Board of Directors
Professional Standards Committee, Arbitration Committee, and Mediation Committee
Professional Standards Committee, Mediation Committee, and Board of Directors
Grievance Committee, Professional Standards Committee, and Board of Directors
A request for mandatory arbitration is based on:
A monetary dispute between REALTORS® (principals) in different firms.
A legal claim for damages between REALTORS® in different firms.
A monetary dispute between salespersons in different firms.
A legal claim for damages between a salesperson and his/her broker.
A request for arbitration is most commonly based on a dispute about:
A listing commission.
A cooperative (selling) commission.
An earnest money dispute.
A claim for damages.
The concept of procuring cause is used to decide commission disputes in arbitration cases. Which of the following statements is true about the concept of procuring cause?
No predetermined rules of entitlement are allowed to be used by a hearing panel.
A hearing panel should not consider the entire course of conduct in the transaction and should decide the case on one factor.
Whether an agent abandoned or estranged a buyer is not an important factor in determining which party will receive an award.
Generally, a hearing panel should split an award and should not make the award all to one party or the other.
REALTORS® have an obligation to protect and promote the interests of their clients but also have an obligation to treat all parties:
Fairly and honestly.
If a listing broker tells another broker, "I'll cooperate with you," the other broker:
May assume that the listing broker will pay him/her a cooperative commission.
May not assume that the listing broker will pay him/her a cooperative commission.
Has an arbitration claim against the broker if the listing broker fails to pay a cooperative commission.
Has a legal claim for the cooperative commission against the listing broker if the listing broker refuses to pay a cooperative commission.
A cooperating broker in a transaction may:
Claim to have "sold" the property involved in the transaction.
Post a "sold" sign on the property involved in the transaction after the closing (with the buyer's permission).
Not claim to have "sold" the property but may state that they have "participated" or "assisted" in the transaction.
Both A and B.
Disciplinary action in an ethics complaint may NOT include:
A fine not to exceed $5,000.
A letter of reprimand.
A requirement that the respondent attend a course of education.
A written apology.