Prohibited Practices

Question 1

Misrepresentation

Answer 1

Communicating false information, misinformation.

• Willful= intentionally, done on purpose
• Negligent= accident, not intentional,

Question 2

Omission

Answer 2

Failing to disclose or provide information
- Willful= intentionally, done on purpose known information.
- Negligent= unaware, accident,
both still result in disciplinary action.

Question 3

Disclosure of Material Fact

Answer 3

about the property itself,
info pertaining to buyer or seller’s ability to complete the sale.
- Death= not material fact but stimulating fact.
-Aids, sexual offender= not material fact but may choose to disclose.

Question 4

Conflict of Interest

Answer 4

must disclose if agent has any ties with client or parties pertaining to the transaction.
- False Promises: agents must not over promise, or make promises that are un realistic.
-

Question 5

Fraudulent/ dishonest dealing

Answer 5

-Self Dealing: ex; agent is trying to make a profit from the client aka their principal. this will be a conflict of interest.

Question 6

Improper Broker Commission

Answer 6

Broker MAY NOT pay commission to any person or for services that violate license law.
Ex: Broke can’t pay unlicensed person for acts that require a license.