Module 10

Question 1

A set of principles or a system of values

Answer 1

ethics

Question 2

The real estate agent should place no personal interest above that of his or her client

Answer 2

fidelity

Question 3

an act permitted by law

Answer 3

legal

Question 4

The real estate agent should employ prudence and caution so as to avoid misrepresentation in any way

Answer 4

Integrity

Question 5

The real estate agent should be informed on market conditions affecting the real estate business

Answer 5

Competency

Question 6

The Canons of Professional Ethics and Conduct, part of the TREC rules, requires the display of the Consumer Protection notice telling the consumer about TREC, how to file a complaint, and the Real Estate Recovery Fund

Answer 6

Consumer Information

Question 7

A real estate agent must not respond to or facilitate inquiries about or make disclosure which indicates any racial or religious preference

Answer 7

Discriminatory Practices

Question 8

The largest trade association in the United States, providing services to its members

Answer 8

National Association of REALTORS

Question 9

The real estate agent should be informed on market conditions affecting the real estate business.

Answer 9

Competency

Question 10

The real estate agent should employ prudence and caution so as to avoid misrepresentation in any way.

Answer 10

Integrity

Question 11

The real estate agent should place no personal interest above that of his or her client.

Answer 11

Fidelity

Question 12

A real estate agent must not respond to or facilitate inquiries about or make disclosure which indicates any racial, or religious preference.

Answer 12

Discriminatory Practices

Question 13

A set of principles or a system of values.

Answer 13

Ethics

Question 14

_________________ are habits that enable us to act accordingly as persons who are truthful, honest, courageous, compassionate, generous, tolerant, and possess integrity, fairness, self-control, and prudence.

Answer 14

Ethics

Question 15

An ethical dilemma is when?

Answer 15

a person does not know the right course of action and find the wrong choice very tempting.

Question 16

_____________ consisted of 282 laws etched into a large basalt slab that covered everything from the duties of workers and trade to slander, theft and divorce.

Answer 16

Hammurabi’s Code

Question 17

Most brokerage firms have adopted a ___________ that license holders must follow.

Answer 17

Code of Ethics

Question 18

___________ prohibits discrimination against those with disabilities by denying the the full and equal enjoyment of goods, facilities, accommodations, services and privileges

Answer 18

ADA

Question 19

The Texas Real Estate Commission has included the ___________ for real estate license holders in the Rules of the Commission.

Answer 19

Canons of Professional Ethics and Conduct

Question 20

Commission rates must always be a matter of negotiation between the

Answer 20

broker and the client

Question 21

The term _________________ is a registered collective membership mark identifying a real estate professional as a member of the National Association of REALTORS®

Answer 21

REALTOR®

Question 22

Enacted in 1968, this federal law that prohibits discrimination against certain protected classes of people in connection with the sale or leasing of real estate.

Answer 22

Federal Fair Housing Act

Question 23

Enacted in 1990, this federal law removed barriers and created access to public and commercial buildings for all. It also required employment decisions to be based on an applicant’s qualifications.

Answer 23

Americans with Disabilities Act

Question 24

Fidelity, Integrity, Competency, the Consumer Protection Notice, and Anti-Discrimination are all addressed in this part of the TREC Rules.

Answer 24

Canons of Professional Ethics and Conduct

Question 25

The federal law that prohibits monopolies and monopolistic practices. In real estate, this law says brokers cannot set commissions between companies and that commissions are always negotiable between a consumer and a service provider.

Answer 25

Sherman Anti-Trust Act

Question 26

This federal law, administered by the Consumer Financial Protection Bureau (the CFPB), concerns residential real estate transactions with federally related financing.

Answer 26

Real Estate Settlement Procedures Act

Question 27

This federal law requires that disclosure in advertising take place when the advertiser uses trigger terms like monthly payment, interest rate, down payment, or the number of payments or term.

Answer 27

Truth in Lending Act

Question 28

True or False: A business practice may not be ethical even if it is legal.

Answer 28

True

Question 29

True or False: It is legal for a real estate license holder to reveal the national origin and ancestry of a potential purchaser of real property.

Answer 29

False

Question 30

True or False: If there is evidence that establishes that a license holder violated TRELA, TREC may revoke or suspend his or her license.

Answer 30

True

Question 31

True or False: All license holders are REALTORS®.

Answer 31

False

Question 32

True or False: Texas members of the National Association of REALTORS® are not regulated by the Texas Real Estate Commission.

Answer 32

F

Question 33

True or False: Laws are always based upon common religious practices.

Answer 33

F

Question 34

True or False: Texas real estate license holders are obligated to disclose whether or not a current or former tenant of a property has or had AIDS or HIV-related illness to a potential buyer.

Answer 34

F

Question 35

True or False: Making good ethical decisions requires sensitivity to ethical issues.

Answer 35

T

Question 36

True or False: Article 4 of the Canons of Professional Ethics and Conduct of Real Estate License Holders states that brokers must display the Equal Housing sign in each place of business.

Answer 36

F

Question 37

True or False: Good ethics are good business.

Answer 37

T

Question 38

Articles 1 through 9 of the Code of Ethics and Standards of Practice of the National Association of Realtors addresses the agent’s duties to ____________________

Answer 38

clients and customers

Question 39

Articles 15 through 17 of the Code of Ethics and Standards of Practice of the National Association of Realtors addresses the agent’s duties to ___________________________ .

Answer 39

other REaltors

Question 40

Article 1 of the Code of Ethics requires that the agent pledge themselves to _____________________the interests of their client.

Answer 40

protect and promote

Question 41

Article 2 of the Code of Ethics prevents an agent from _____________________ pertinent facts relating to the property or the transaction.

Answer 41

exaggerating, misrepresenting or concealing

Question 42

Article 6 of the Code of Ethics requires a Realtor to have the consent of their _____________ before accepting commissions or rebates.

Answer 42

client

Question 43

True or False - Article 10 of the Code of Ethics prevents discrimination by Realtors against certain classes of people including based on sexual orientation and gender identity.

Answer 43

True

Question 44

True or False - Article 15 of the Code of Ethics allows a Realtor to make false or misleading statements about other real estate professionals.

Answer 44

False

Question 45

Which Source of Ethical Standards attempts to make ethical actions equal for and at least on a defensible standard?

Answer 45

The Fairness or Justice Approach

Question 46

Which Source of Ethical Standards focuses on common conditions that are important to the welfare or common good of all?

Answer 46

The Common Good Approach focuses

Question 47

Which source of Ethical Standards requires ethical actions that produce the greatest balance of good over harm to those who are affected?

Answer 47

The Utilitarian Approach

Question 48

The Texas Real Estate Commission has included the ____________ for real estate license holders in the Rules of the Commission.

Answer 48

Canons of Professional Ethics and Conduct