CH 4 Professional Code and Ethics

Question 1

In regards to the code of professional standards for real estate, federal legislation focuses primarily on what?

Answer 1

anti-discrimination laws and fair trade practices

Question 2

In regards to the code of professional standards for real estate, state laws and licensing regulations focus primarily on what?

Answer 2

agency and disclosure requirements

Question 3

What does the Civil Rights Act of 1866 say?

Answer 3

made it illegal to discriminate in housing based on race

Question 4

What does the Executive Order 11063 do?

Answer 4

to help reenforce the Civil Rights Act of 1866 by prohibiting discrimination in residential properties financed by FHA and VA loans (anywhere where federal funding was involved)

Question 5

The Civil Rights Act of 1968 Title VIII (Fair Housing Act) does what?

Answer 5

prohibits discrimination in housing based on race, color, religion, and national origin

Question 6

Who enforcing the Fair Housing Act?

Answer 6

The Office of Fair Housing and Equal Opportunity (OFHEO under the supervision of the Department of Housing and Urban Development (HUD)

Question 7

What new fair housing regulation was enacted in March 2012? And who do they apply to?

Answer 7

equal access to housing in HUD programs regardless of sexual orientation or gender identity AND apply only to federally supported housing programs (state may have laws for other housing)

Question 8

In Jones v. Mayer, in 1968, the Supreme Court ruled…?

Answer 8

all discrimination in selling or renting based on race is prohibited and any one who feels victimized can seek legal recourse

Question 9

In 1972, HUD instituted a requirement that brokers display what?

Answer 9

Equal Opportunity in Housing poster /standard HUD poster

Question 10

Amendments to what laws prohibit discrimination based on sex, disability, and families with children?

Answer 10

federal fair housing laws

Question 11

If a person feels they have been discriminated against under fair housing laws, where can they file a complaint?

Answer 11

with the Office of Fair Housing and Equal Opportunity (OFHEO) within HUD or they can file suit in federal or state court

Question 12

How long does a person have to file a complaint with HUD, in regards to discrimination under fair housing laws?

Answer 12

with in one year of violation

Question 13

How long does a person have to file suit in state or federal court, in regards to discrimination under fair housing laws?

Answer 13

with in two years of violation

Question 14

What does the Home Mortgage Disclosure Act say?

Answer 14

requires lenders involved with federally insured loans to not discriminate with where they do loans AKA prohibits redlining

Question 15

What is a trade association?

Answer 15

voluntary non profit organization of competing businesses engaged in the same industry/trade formed to better the industry and promote progress

Question 16

What is a real estate association/board?

Answer 16

voluntary organization whose members are engaged in some form of RE business

Question 17

Who is a REALTOR?

Answer 17

a real estate licensee who belongs to a local real estate association/board and have REALTOR membership

Question 18

Membership in a local real estate association automatically makes you a member of what?

Answer 18

the California Association of Realtors AND the National Association of Realtors

Question 19

What is the purpose of the California Association of Realtors and who is its members?

Answer 19

serve in developing and promoting services that will enhance members ability to conduct business with integrity AND composed of members of local RE boards across the state

Question 20

What is the National Association of Realtors?

Answer 20

organicity composed member of RE boards across the nation, formed to unite real estate interests of the nation and promote fixing of issues affecting real property

Question 21

How must licensees use the term realtor?

Answer 21

spelled out in accordance with the NAR trademark guidelines as so “REALTOR®”

Question 22

What is the purpose of an MLS (multiple listing service)?

Answer 22

provide a means by which authorized MLS brokers establish relationships with other broker participants with respect to listed properties AND a tool of collected listing information to evaluate real property

Question 23

Who has access to the MLS?

Answer 23

qualified real estate brokers and appraisers (a salesperson may gain access through their employing broker)

Question 24

What does NAREB stand for?

Answer 24

The National Association of Real Estate Brokers, Inc

Question 25

What does CAREB stand for?

Answer 25

The California Association of Real Estate Brokers

Question 26

Members of the NAREB are known as what, as long as they also are a member of a local board as well?

Answer 26

REALISTS

Question 27

Trade associations related to the real estate industry are split into what two categories?

Answer 27

construction phase and financing phase

Question 28

In any instance where the Code of Ethics and the law conflict, what takes precedence?

Answer 28

the law

Question 29

Following each article in the REALTORS Code of Ethics, there may be one or more Standards of Practice. The purpose of them are to what?

Answer 29

to clarify, interpret, or give examples of the intent of the article it is attached to

Question 30

Who must a person contact if they wish to file a complaint against a REALTOR?

Answer 30

the local real estate board or association

Question 31

Any complains against REALTORs are given to the Grievance Committee, who’s job it is to what?

Answer 31

to review complaints and determine if it is legitimate enough to send to a Professional Standards Hearing (for Ethics complaint) OR an Arbitration Hearing (for Arbitration complaint)

Question 32

Who makes up the Grievance Committee?

Answer 32

REALTOR members

Question 33

Article 17 of the Code requires REALTORS to arbitrate rather than litigate. What does that mean?

Answer 33

dispute legal disagreements through the arbitration process which is private rattan than the litigation system which is in a public courtroom

Question 34

An arbitration complaint is generally over what?

Answer 34

generally over money, usually between two brokers as to which is entitled to a commission (usually commission is awarded to one and NOT split between the two)

Question 35

The REALTOR Code of Ethics is based on the concept of what?

Answer 35

of practicing real estate according to the highest ethical standards