Code of Ethics

Question 1

What is the purpose of NAR?

Answer 1

National Association of Realtors; purpose to help realtors become successful and profitable in their business

Question 2

Define ethical

Answer 2

Moral right and wrong, or duty and obligation

Question 3

Which takes precedent, ethical standards or the law?

Answer 3

The law

Question 4

What do Articles 1-9 concern?

Answer 4

Duties to clients and customers

Question 5

What do Articles 10-14 concern?

Answer 5

Duties to the public

Question 6

What do Articles 15-17 concern?

Answer 6

Duties to other realtors

Question 7

What do realtors have to do for other agencies?

Answer 7

List in MLS, post accurate information about property, provide times for other realtors to show the property

Question 8

Why does the offer have to be in writing before any contract is made?

Answer 8

So it can’t be taken advantage of; the realtor can’t give an offer or purchase (for themselves) without letting the other party know designation

Question 9

Do realtors have to disclose if they receive profit or commission a transaction?

Answer 9

Yes; on “outside” expenditures

ex. referral fees from inspector, lender, appraiser, etc.

Question 10

Why can’t realtors accept compensation from more than one party without consent/disclosure of the clients?

Answer 10

Because it could be a conflict of interest and look like they are favoring one party over another; the commission is split

Question 11

Do realtors have to provide a copy of documents signed to clients?

Answer 11

Yes for both the buyer and the seller, to prove nothing has been changed (listing agreements, leases, purchase contracts)

Question 12

What discrimination is allowed/disallowed by realtors?

Answer 12

Disallowed- race, color, religion, sex, handicap, familial status, national origin
Allowed- age

Question 13

What if a realtor is engaged in other real estate activities?

Answer 13

They must seek assistance and disclose to the client, so they may participate with permission

ex. appraisal, BPO (broker price opinion), property management, auctions for selling estate

Question 14

Can realtors offer inducements for business?

Answer 14

Yes, if reasonable/small

Question 15

Can listing brokers claim they sold a property even if a different realtor “made” the sale?

Answer 15

Yes

Question 16

Do realtors have to list their brokerage firm in any advertising?

Answer 16

**Depends- not on short text sites like Twitter, but on company Facebook pages

Question 17

Can the realtor use a different website domain name than their brokerage company name?

Answer 17

Yes, just have to show brokerage company on it too

Question 18

Can realtors try to advertise and sell their own property without listing it?

Answer 18

Yes, if FSBO

Question 19

Realtors and law rule

Answer 19

Realtors shall not engage in the practice of real estate law; must submit to arbitration rather than litigation

Question 20

Is false or misleading statements about competition allowed?

Answer 20

No. This includes advertising, word of mouth, and excessive ethics complaints

Question 21

Can a realtor solicit business from a person with a sign in their yard or a listing on MLS?

Answer 21

**Depends- you can when the listing expires, or if the person won’t tell you when the listing expires

Question 22

Can a realtor send out mass mailings to the public?

Answer 22

Yes