Chapter 09 : Professional Ethics

Question 1

A person who holds a position of trust with respect to someone else and is obliged, by virtue of that relationship, to act solely in the other person’s benefit is a ________.

Answer 1

A person who holds a position of trust with respect to someone else and is obliged, by virtue of that relationship, to act solely in the other person’s benefit is a fiduciary.

Question 2

Ethical codes of conduct have the same force of law as statutes.

(1) True
(2) False

Answer 2

(2) False.
Ethical codes of conduct are voluntarily adopted by certain members of the public that wish to be a part of a professional association.
Members of the public do not have the choice of voluntarily adopting the obligations contained in statutes.

Question 3

Most ethical codes of conduct are passed by government agencies.

(1) True
(2) False

Answer 3

(2) False. Most ethical codes of conduct are passed by professional associations as a condition of membership.

Question 4

A real estate professional’s duty of confidentiality is owed to:

(1) clients only.
(2) clients and third-parties.

Answer 4

A real estate professional’s duty of confidentiality is owed to:

(1) clients only.

Question 5

The CREA’s Code of Conduct imposes a higher standard of conduct on real estate professionals than the Real Estate Services Act.

(1) True
(2) False

Answer 5

The CREA’s Code of Conduct imposes a higher standard of conduct on real estate professionals than the Real Estate Services Act.

Answer : (1) True