Ch 4. PA License Law and Ethics in Professional Practice Flashcards
What is the difference between the Pennsylvania Real Estate Commission and the Department of State?
The Commission promulgates and enforces the rules and regulations, sets fees and establishes requirements for continuing education, real estate schools and curriculums. The Department administers the rules by arranging test services, writing and administering exams, collecting fees and issuing licenses.
Who does NOT need a campground membership salesperson license to sell campground memberships?
Licensed broker, salesperson or time-share salesperson
What types of licenses are available for non-residents?
Reciprocal- for licensees in states that have reciprocal agreements with Pennsylvania
Standard - for licensees in states that do not have reciprocal agreements with Pennsylvania
What is the requirement for an applicant from out of state, currently licensed in that state, to obtain a standard license in Pennsylvania?
Must pass the state portion of the Pennsylvania exam
What are ethics?
Ethics are rules of conduct or accepted behavior based on moral principles.
List three examples of how real estate licensees should practice the Golden Rule in day-to-day situations. (Additional correct answers on page 5.)
Present a professional appearance at all times.
Return calls and emails promptly.
Arrive on time and prepared to meetings and appointments.
Describe values.
Values define what is important to someone and they guide a person’s beliefs, principles, and actions. Personal values affect people’s ethics since ethics help determine what is right or wrong. Without being consciously aware of it, our highest values influence the actions we take, words we say, and beliefs we have about the world.
How should licensees handle multiple offers to avoid ethical issues?
Licensees should always be unbiased in presentation of all offers.
Describe a common ethical concern regarding showings.
One major unethical practice regarding showings is allowing clients to look at homes on their own by providing a key or giving a lockbox combination.
Why is practicing ethical behavior good business practice?
When licensees meet the needs of their clients, they will feel good about themselves and it will propel them to continue to keep their clients’ best interests at heart. Also, if associates are ethical, their clients will be loyal and send referrals their way.
What is a code of ethics?
A code of ethics is a set of principles of conduct based on ideas of what is morally good or bad that guide decision making and behavior. The purpose of a code of ethics is to provide members and other interested persons with guidelines for making ethical choices in the conduct of their work.
What is the goal of the NAR® Code of Ethics?
The ultimate goal of the NAR® Code of Ethics is to encourage the highest standard of ethical business practice by all of the members of the association. A secondary part of that goal is to provide protection for the public by using a formal complaint process whereby the association can sanction a member for improper actions through an informed peer process as opposed to court litigation.
What are the four sections of the Code of Ethics?
Preamble
Duties to Clients and Customers
Duties to the Public
Duties to REALTORS®
What does the Preamble contain?
The Preamble contains thoughts about how licensees should conduct themselves.
Why is the Code referred to as a “living document?”
There is an annual review by the Professional Standards Committee that recommends changes where necessary. As the industry itself goes through change, the articles of the Code often need new interpretation or clarification.
