Ch 5. NAR Code of Ethics

Question 1

How long does the preservation of confidential information last?

Answer 1

(Standard 1-9) Confidentially continues after termination of agency relationships or any non-agency relationships recognized by law.

Question 2

REALTORS® may represent both parties in the same transaction provided what two elements are in-place?

Answer 2

(Standard 1-5) Only after full disclosure to and with informed consent of both parties

Question 3

What responsibility does a REALTOR® have to uncover latent defects?

Answer 3

(Article 2) A REALTOR® does not have any obligation to discover latent defects in a property.

Question 4

What factors are not considered “pertinent” for purposes of Article 2?

Answer 4

(Standard 2-5) Factors defined as “non-material” by law or regulation or which are expressly referenced in law or regulation as not being subject to disclosure are considered not “pertinent” for purposes of Article 2.

Question 5

What types of demographic information can a REALTOR® share?

Answer 5

(Standard 10-2) A REALTOR® can provide demographic information related to a property, transaction or professional assignment to a party if such demographic information is:

Needed to assist with or complete a real estate transaction or professional assignment
Obtained or derived from a recognized, reliable, independent, and impartial source and that source is disclosed in reasonable detail.

Question 6

The obligation to cooperate does not include the obligation to do what?

Answer 6

(Article 3) Share commissions, fees, or to otherwise compensate another broker.

Question 7

What does the duty to cooperate, as established in Article 3, mean?

Answer 7

(Standard 3-10) It relates to the obligation to share information on listed property, and to make property available to other brokers for showing to prospective purchasers/tenants when it is in the best interests of sellers/landlords.

Question 8

What type of demographic information cannot be given to a potential buyer?

Answer 8

(Standard 10-1) A REALTOR® cannot volunteer information regarding the racial, religious or ethnic composition of any neighborhood.

Question 9

How might a REALTOR® provide an opinion of property if that property is outside their field of competence?

Answer 9

(Article 11) A REALTOR® could employ the assistance of one who is competent on such types of property.

Question 10

What three skills must a REALTOR® have to prepare an opinion of real property value?

Answer 10

(Standard 11-1)

Be knowledgeable about the type of property being valued,
Have access to the information and resources necessary to formulate an accurate opinion, and
Be familiar with the area where the subject property is located unless lack of any of these is disclosed to the party requesting the opinion in advance.

Question 11

List at least two things that a REALTOR® is prohibited from doing regarding website advertising?

Answer 11

(Standard 12-10)

Engaging in deceptive or unauthorized framing of real estate brokerage websites
Manipulating listing and other content in any way that produces a deceptive or misleading result
Deceptively using metatags, keywords or other devices/methods to direct, drive, or divert internet traffic
Presenting content developed by others without either attribution or without permission

Question 12

What steps must a REALTOR® take when advertising unlisted real property for sale/lease in which he or she has an ownership interest?

Answer 12

(Standard 12-6) REALTORS® must disclose their status as both owners and licensees.

Question 13

When must a REALTOR®, acting as buyer’s representative, disclose that relationship to the seller’s representative?

Answer 13

(Standard 16-10) Disclosure must occur at first contact and must provide written confirmation of that disclosure no later than execution of a purchase agreement.

Question 14

In a cooperative transaction, a REALTOR® can only compensate which other party?

Answer 14

(Standard 16-15) A REALTOR® can only give compensation to a principal broker and may not compensate nor offer to compensate any of the sales licensees employed by or affiliated with other REALTORS®.

Question 15

What is the result when two REALTORS® file for litigation and refuse to withdraw from an arbitrable matter?

Answer 15

(Standard 17-1) This action constitutes a refusal to arbitrate.

Question 16

When are REALTORS® not required to mediate?

Answer 16

(Standard 17-2) REALTORS® are not required to mediate in those circumstances when all parties to the dispute advise the Board in writing that they choose not to mediate through the Board’s facilities.

Question 17

How should you handle a buyer who has a pet with him or her when showing a property?

Answer 17

Request that the pet be left safely outside or in a vehicle.

Question 18

What is the best practice when showing a property to a small groups?

Answer 18

When showing property, keep all members of the group together.

Question 19

If you think vandalism has occurred at a property that is not listed with your company, whom should you contact first?

Answer 19

Contact the listing broker immediately.

Question 20

What three ways does the Code support the law?

Answer 20

The Code must be reasonably and consistently construed with the law.

The Code imposes duties above and in addition to the duties imposed by law or regulation.

The Code restates certain fundamental legal principles, for example those principles dealing with contracts, agency, and fair housing.

Question 20

Typically, what type of information is not shared when an opinion of value is presented?

Answer 20

That the opinion of value is the same as an appraisal

Question 21

Preservation of confidential information:

Answer 21

continues after termination of agency relationships.

Question 22

Under what conditions, if any, must offers with unresolved contingencies be disclosed?

Answer 22

REALTORS® must disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation.

Question 23

What is used to support, interpret, and amplify a Code Article?

Answer 23

One or more Standards of Practice

Question 24

It is true that a REALTOR®:

Answer 24

must deny access to a listed property based on the terms of the owner.

Question 25

Fees for preparing appraisals or other valuations are:

Answer 25

not contingent upon the amount of the appraisal or valuation

Question 26

Which of these statements is true?
A REALTOR® must wait three business days before contacting an owner after a listing terminates.
A REALTOR® cannot disclose when a listing terminates to another broker.
A REALTOR® may never contact a owner to determine when a listing terminates.
A REALTOR® may contact a owner to determine when a listing terminates.

Answer 26

A REALTOR® may contact a owner to determine when a listing terminates.

Question 27

Broker Jim frequently copies beauty shots of designer homes from the web and places them in his ads. What might be said of Jim’s actions?

Answer 27

Broker Jim is in violation of Standards of Practice 12-10. REALTORS® are prohibited from presenting content developed by others without either attribution or without permission:

Question 28

What does Article 17 say about mediation?

Answer 28

Article 17 does not require REALTORS® to mediate in those circumstances when all parties to the dispute advise the Board in writing that they choose not to mediate through the Board’s facilities.

Question 29

Which statement is true?
REALTORS® can disclose the existence of other offers on the property even without the seller’s permission.
REALTORS® can disclose the existence of other offers on the property with the seller’s permission.
REALTORS® can disclose the existence of other offers on a property without the seller’s permission after a closing.
REALTORS® must disclose the existence of other offers at the time of closing.

Answer 29

REALTORS® can disclose the existence of other offers on the property with the seller’s permission.

Question 30

REALTORS® may represent both parties in the same transaction only after:

Answer 30

full disclosure to and with informed consent of both parties.

Question 31

What does Article 16 say about contacting the client of another broker?

Answer 31

Article 16 does not preclude REALTORS® from contacting the client of another broker for the purpose of entering into a contract that is unrelated to the type of service currently being provided.

Question 32

The obligation to cooperate:

Answer 32

does not include the obligation to share commissions, fees, or to otherwise compensate another broker.

Question 33

Under what conditions can a REALTOR® claim to have “sold” a property?

Answer 33

If the REALTOR® participated in the transaction as the listing broker or cooperating broker he or she may claim to have “sold” the property.

Question 34

Compensation terms must be determined by cooperating brokers:

Answer 34

before beginning efforts to accept the offer of cooperation.

Question 35

Which of these statements is true?
A REALTOR® must wait three business days before contacting an owner after a listing terminates.
A REALTOR® cannot disclose when a listing terminates to another broker.
A REALTOR® may never contact a owner to determine when a listing terminates.
A REALTOR® may contact a owner to determine when a listing terminates.

Answer 35

A REALTOR® may contact a owner to determine when a listing terminates.

Question 36

What type of demographic information is a REALTOR® allowed to share with a potential buyer?

Answer 36

The number of families living in a subdivision

Question 37

REALTORS® can use and display:

Answer 37

only professional designations, certifications, and other credentials to which they are legitimately entitled.

Question 38

REALTORS® may represent both parties in the same transaction only after:

Answer 38

full disclosure to and with informed consent of both parties.

Question 39

Under what conditions, if any, is REALTOR® Mary allowed to contact a seller that had a previous exclusive agreement with a broker?
REALTOR® Mary must get permission from the previous broker, prior to contacting the seller.
REALTOR® Mary is never allowed to contact a seller that had a previous exclusive agreement with a broker.
REALTOR® Mary is allowed at any time to contact a seller that had a previous exclusive agreement with a broker.
REALTOR® Mary must wait 5 business says before being allowed to contact a seller that had a previous exclusive agreement with a broker.

Answer 39

REALTOR® Mary is allowed at any time to contact a seller that had a previous exclusive agreement with a broker.

Question 40

REALTORS® must submit offers and counteroffers:

Answer 40

objectively and as quickly as possible.

Question 41

What are the three courtesies that the Professional Standards Committee have developed to support the REALTORS® Standards of Practice?

Answer 41

Respect for the Public, Respect of Property, Respect for Peers

Question 42

What is a good rule to follow?

Answer 42

Do not tell people what you think—tell them what you know.