Ch.6 - Ethics of Practice as a License Holder Flashcards
Texas Licensee
Anyone that TREC has license to practice real estate
REALTOR
A person part of this association can call themselves this because they are a member that pledged to follow the very strict code of ethics and standards of practice
Canons of Professional Ethics and Conduct
Adopted by TREC as part of their rules
They have the force and effect of law in Texas
What are the three characteristics that make a good ethical practices?
Trustworthiness
Honesty
Competence
*what do these make up?
What is ultimate goal of the Code of Ethics?
It is to encourage the highest standard of ethical business practices by all of the members of the association
What is the secondary goal of the Code of Ethics?
It is to provide protection for the public through a formal complaint process.
The association with an informed peer processed conception a member for improper actions rather than through for litigation
The formal Code of Ethics and Standards of Practice set forth by NAR calls for professional to. Do what?
- observe the golden rule
- Conduct themselves in the real estate business in accordance with certain standards that address duties to their clients and the public
What are some of the sanctions imposed for violating the code of ethics and standards of practice?
- a letter of reprimand
- a warning notice
- requires ethic class attendance
- a monetary fine
- probation
- suspension
- expulsion from the association
What are the 5 Canons of Professionals Ethics and Conduct?
- Fidelity
- Integrity
- Competency
- Consumer Information Notice Form CN 1-2
- Discriminatory Practices
Fidelity
Canons of Professional Ethics and Conduct
- The primary duty of the agent is to represent the interest of his client
- The agent must be faithful and observant to the trust placed to them
- The agent must never place their own interest above that of the client
Integrity
Canons of Professional Ethics and Conduct
- The agent has a special responsibility to be honest when performing their duties
Competency
Canons of Professional Ethics and Conduct
- The licensee must be informed of market conditions and continue their education with regard to marketing properties
- The licensee must stay informed of developments in the real estate industry on all levels, local/state/national
- The licensee must exercise skill and judgment and performing duties
Consumer Information Notice Form CN 1-2
Canons of Professional Ethics and Conduct
All licensed real estate brokers more prominently display the sign and everyone of his or her business locations.
This sign is a notice regarding the real estate recovery trust account
What sign is used as a notice regarding the Real Estate Recovery Trust Account?
Consumer Information Notice Form CN 1-2
Canons of Professional Ethics and Conduct
Discriminatory Practices
Canons of Professional Ethics and Conduct
An agent may not discriminate with regard to the legally protected classes
How often are the articles of the Code reviewed, by who, and why?
They are annually reviewed
By the Professional Standards Committee
Give recommendations to change because the industry is changing or the code needs new interpretation/clarification
How many articles are in the code?
17
How are the 17 articles in the code broken down?
Articles 1-9 identify duties to clients and customers
Articles 10-14 are duties to the public
Article 15- 17 contain duties to other REALTORS
The role of the NAR mediator is
To assist the parties to seek their own resolution to a problem
Good ethical practices have to do with what characteristics?
Trustworthiness, honesty,and competence
Are specialized websites a main information source for the real estate professional code of ethics?
No
What are some ways to gain more information about the code of ethics?
- Federal and state laws which focus on anti-discrimination laws and fair trade practices
- Real estate licensing regulation on the state level dealing with agency issues and disclosures
- Self regulation by real estate associations that set standards for professional conduct
How often are the NAR Code of Ethics reviewed?
Annually
Sanctions may be imposed by hearing panel with the monetary fine of how much?
$15,000
*what fine is this for?
What is the purpose of the NAR Standard of Practice in reference to the article itself?
- Clarify
- Interpret
- Give Examples
To the article of the Code it is attached to
Do all articles of the code of ethics have a standard of practice? Why?
No because some articles are so clear that there is no need for further explanation
Under which TREC canon messenger be faithful and observant to the trust placed in them?
Fidelity
Under which TREC cannon with the agent stay in formed or developments in the industry?
Competency
NAR
National Association of Realtors
- They set additional codes and standards of practices that members pledge to
