Ch.6 - Ethics of Practice as a License Holder

Question 1

Texas Licensee

Answer 1

Anyone that TREC has license to practice real estate

Question 2

REALTOR

Answer 2

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

Question 3

Canons of Professional Ethics and Conduct

Answer 3

Adopted by TREC as part of their rules

They have the force and effect of law in Texas

Question 4

What are the three characteristics that make a good ethical practices?

Answer 4

Trustworthiness

Honesty

Competence

*what do these make up?

Question 5

What is ultimate goal of the Code of Ethics?

Answer 5

It is to encourage the highest standard of ethical business practices by all of the members of the association

Question 6

What is the secondary goal of the Code of Ethics?

Answer 6

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

Question 7

The formal Code of Ethics and Standards of Practice set forth by NAR calls for professional to. Do what?

Answer 7

• 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

Question 8

What are some of the sanctions imposed for violating the code of ethics and standards of practice?

Answer 8

• a letter of reprimand
• a warning notice
• requires ethic class attendance
• a monetary fine
• probation
• suspension
• expulsion from the association

Question 9

What are the 5 Canons of Professionals Ethics and Conduct?

Answer 9

1. Fidelity
2. Integrity
3. Competency
4. Consumer Information Notice Form CN 1-2
5. Discriminatory Practices

Question 10

Fidelity

Canons of Professional Ethics and Conduct

Answer 10

• 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

Question 11

Integrity

Canons of Professional Ethics and Conduct

Answer 11

• The agent has a special responsibility to be honest when performing their duties

Question 12

Competency

Canons of Professional Ethics and Conduct

Answer 12

• 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

Question 13

Consumer Information Notice Form CN 1-2

Canons of Professional Ethics and Conduct

Answer 13

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

Question 14

What sign is used as a notice regarding the Real Estate Recovery Trust Account?

Answer 14

Consumer Information Notice Form CN 1-2

Canons of Professional Ethics and Conduct

Question 15

Discriminatory Practices

Canons of Professional Ethics and Conduct

Answer 15

An agent may not discriminate with regard to the legally protected classes

Question 16

How often are the articles of the Code reviewed, by who, and why?

Answer 16

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

Question 17

How many articles are in the code?

Answer 17

17

Question 18

How are the 17 articles in the code broken down?

Answer 18

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

Question 19

The role of the NAR mediator is

Answer 19

To assist the parties to seek their own resolution to a problem

Question 20

Good ethical practices have to do with what characteristics?

Answer 20

Trustworthiness, honesty,and competence

Question 21

Are specialized websites a main information source for the real estate professional code of ethics?

Answer 21

No

Question 22

What are some ways to gain more information about the code of ethics?

Answer 22

• 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

Question 23

How often are the NAR Code of Ethics reviewed?

Answer 23

Annually

Question 24

Sanctions may be imposed by hearing panel with the monetary fine of how much?

Answer 24

$15,000

*what fine is this for?

Question 25

What is the purpose of the NAR Standard of Practice in reference to the article itself?

Answer 25

• Clarify
• Interpret
• Give Examples

To the article of the Code it is attached to

Question 26

Do all articles of the code of ethics have a standard of practice? Why?

Answer 26

No because some articles are so clear that there is no need for further explanation

Question 27

Under which TREC canon messenger be faithful and observant to the trust placed in them?

Answer 27

Fidelity

Question 28

Under which TREC cannon with the agent stay in formed or developments in the industry?

Answer 28

Competency

Question 29

NAR

Answer 29

National Association of Realtors

• They set additional codes and standards of practices that members pledge to