Chapter 6 - Ethics of Practice as a License Holder

Question 1

Ethics

Answer 1

Moral principles that govern a person’s or group’s behavior.

You can perform in a legal manner but not in an ethical manner

Question 2

5 Canons of Professional Ethics

Answer 2

1) Fidelity - primary duty of agent is loyalty
2) Integrity - honesty and trustworthy
3) Competency - knowledgeable
4) Form 1-1 - notice for real estate recovery trust account
5) Discriminatory Practices

Question 3

Fidelity - Canon of Professional Conduct

Answer 3

1) primary duty is for the agent to represent the interests of their client. But, shall also treat other parties in the transaction fairly
2) be faithful and observant and detail oriented in performing duties
3) must place no personal interest above that of client

Question 4

Integrity - Canon of Professional Conduct

Answer 4

1) employment of prudence and caution to avoid misrepresentation of any way

Question 5

Competency - Canon of Professional Conduct

Answer 5

obligation to be knowledgeable
1) be informed of conditions affecting the real estate business
2) be informed on national, state, and local developments
3) exercise judgement and skill

Question 6

Consumer Information Form 1-1 - Canon of Professional Ethics

Answer 6

approved by TREC in 1991

each real estate inspector/broker shall display this in a prominent location in each place of business

Question 7

Discriminatory Practices - Canon of Professional Ethics

Answer 7

no one shall inquire, respond too, or make disclosure a preference, limitation, or discrimination (race, color, sex, origin, handicap, etc)

Question 8

NAR Code of Ethics

Answer 8

National Association of Realtors publishes their own code of ethics