Code of Ethics - "Articles"

Question 1

Realtors must protect their client and promote their interests. Further, they must treat others honestly.

Answer 1

Article 1

Question 2

Realtors shall avoid misrepresentation, exaggeration or concealment of pertinent facts about the real estate property and its transaction.

Answer 2

Article 2

*Adverse factors have to be readily apparent.
If asked about a particular topic, they should answer honestly.

Question 3

Realtors shall cooperate with other agencies except when cooperation is not in the client’s best interest.

Answer 3

Article 3

Question 4

Realtors shall not present offers or purchase property for themselves, their family or firms without letting the other party know their designation.

Answer 4

Article 4

Question 5

Realtors shall not provide professional consulting services or provide values in regards to their own property without disclosing the interest.

*Must be in writing before contraacts are made.

Answer 5

Article 5

Question 6

Realtors must disclose if they are profiting or receiving a rebate or commission on “outside” expenditures related to their client’s transaction.

Answer 6

Article 6

Question 7

Realtors may not accept compensation from more than one party to the transaction without full consent and disclosure of the clients.

Why?

Answer 7

Article 7

*Conflict of interest if the buyer tries to pay you and you don’t tell the seller.

Question 8

Realtors shall keep escrow and/or trust monies in a special account in an appropriate financial institution.

Why can’t they keep it in their bank accounts?

Answer 8

Article 8

*Because people will spend it.

Question 9

Realtors must write listing agreements, leases and purchase contracts in clear language and must provide a copy to clients upon signing.

Why must they provide a copy?

Answer 9

Article 9

*So they know nothing has been altered or changed, and you have your copy to prove what was right.

Question 10

Articles 1-9 include:

Answer 10

Duties to clients and customers

Question 11

Articles 10-14 include:

Answer 11

Duties to the public

Question 12

ARticles 15-17 include

Answer 12

Duties to Realtors

Question 13

Realtors may not discriminate based upon race, color, religion, sex, handicap, familial status or national origin in their services.

What is not listed?

Answer 13

Article 10

*Age is not listed.
You can only discriminate on age and can only discriminate on age in a retirement community

Question 14

Realtors shall not engage in other real estate activities outside their realm of competence without seeking assistance and/or disclosing this to the client.

Answer 14

Article 11

Question 15

Realtors shall provide truthful advertising, marketing and communications and their status must be readily apparent.

Answer 15

Article 12

Question 16

Realtors shall not engage in the practice of real estate law.

Answer 16

Article 13

Question 17

If charged with unethical practice, realtors must cooperate fully and honestly.

• Realtors cannot impede investigations by withholding information or filing multiple complaints.
• Realtors cannot disclose information on ethics or arbitration hearings.
• Realtors cannot threaten any party with libel, slander or defamation lawsuits during an ethics or arbitration hearings.

*must be truthful or they will pull liscense

Answer 17

Article 14

Question 18

Realtors may not make false or misleading statements about the competition.

What does this include?

Answer 18

Article 15

1. Advertising
2. Word of mouth
3. Excessive ethics complaints to board or national association of realtors.

Question 19

Realtors shall not engage in practice or solicit other brokerage relationships with clients of the competition.

Answer 19

Article 16

Question 20

In the event of contract or other disputes between member firms, realtors must submit to arbitration rather than litigation.

Answer 20

Article 17

Question 21

Where could realtors make a profit on each deal?

Answer 21

Referral fees, home inspector, termite control people, mortgage lender, exterminator, surveyor, appraiser, attorney, lenders

Question 22

A realtor can be both a realtor and a(n)?

Answer 22

1. Appraiser
2. Renter/Property Manager
3. Auctions

Question 23

What are examples of ways realtors could mislead clients?

Answer 23

• Tell buyer to “make and offer & see if they’ll take it”

- May not submit offers quickly enough to seller

Question 24

What do realtors have to do for other agencies?

Answer 24

1. Supposed to put listing in MLS
2. Post accurate information about property sq. ft, bed and baths, etc.
3. Provide times for other realtor to show the property (Ex. Lockbox)