3.2 - Professionalism & Code of Ethics

Question 1

what can the board do if you breach the code of ethics?

Answer 1

cancer & suspend membership in a real estate board, but can’t cancel license.

Question 2

what kind of law are professionals subject to?

Answer 2

common law

Question 3

what are the 2 requirements for professionals under common law?

Answer 3

don’t commit torts (negligence)
fulfil fiduciary duties owed to client

Question 4

what are the 2 types of misconduct under RESA?

Answer 4

professional misconduct (personally not following rules)
conduct unbecoming a licensee (large scale, undermines public confidence in the real estate industry)

Question 5

2 key sources for licensees duties to client?

Answer 5

common law + legislation

Question 6

aspects of common law that licensee has to behold for client (3)?

Answer 6

• contractual duties (fulfill contracts)
• tort law duties (don’t be negligent)
• agency/fiduciary duties

Question 7

aspects of legislation that licensee has to behold for client (2)?

Answer 7

the Rules
RESA

Question 8

how long does the duty of confidentiality to a client last?

Answer 8

forever

Question 9

exception for licensee to communicate all offers to a client in a timely, objective, and unbiased matter?

Answer 9

when client instructs licensee not to communicate

Question 10

exceptions to maintaining client’s confidentiality?

Answer 10

required by law to disclose
client authorizes you to disclose

Question 11

what must licensee do if they discover misconduct at their brokerage?

Answer 11

talk to managing broker

Question 12

what must licensee do if they discover misconduct outside of their brokerage?

Answer 12

no duty to report
should talk to managing broker anyway

Question 13

what are the 5 steps in the framework for ethical decision making?

Answer 13

1. consider the situation and potential ethical issues
2. identify stakeholders
3. find alternatives
4. evaluate each alternative
5. make and justify your choice