Professional Ethics

Question 1

What are Professional Ethics

Answer 1

Guidelines to ensure human actions are morally fair and lawful

NOTE: Real Estate Services act sets out only a minimum standard of conduct

Question 2

Explain Code of Ethics and Standards of Business Practices

Answer 2

Imposes a higher standard of conduct
Voluntarily accepted by members of real estate board
Suspension or cancellation does not revoke licensees license
Ethics do not substitute Law, and is not practiced in court

Question 3

Explain Disclose All Options

Answer 3

Ethical Duty to present all options to client

Avoid giving incomplete advice, which may not be in the clients best interests

Example: All written offers should be presented to client

Question 4

Describe Duty of Discretion

Answer 4

Fiduciary duty to keep all facts given in trust confidential

Example: Unethical to disclose true bargaining position of client

Question 5

Describe Duty to Follow Clients Instructions

Answer 5

Member should ensure written contractual relationships whenever possible to avoid misunderstanding

Question 6

Describe Acting for Competing Clients

Answer 6

Not unethical to represent two clients with competing interests if facts are kept strictly confidential

Question 7

Disciplinary Hearings

Answer 7

Canadian Real Estate Board can form disciplinary committees to regulate moral standards of colleagues

Question 8

List the Penalties for an Ethical Breach

Answer 8

1- A Reprimand
2- Suspension of membership privileges
3- A Fine
4- Expulsion from Board
5- Order to complete certain real estate courses