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SC Real Estate > Real Estate Ethics Review > Flashcards

Real Estate Ethics Review Flashcards

1
Q

For most of us, our ethics relates to individual moral values that have been influenced by our

Parents
Peers
School experiences
All of the above

A

All of the Above

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2
Q

The first Code Of Ethics was adopted in

1908
1913
1925
1974

A

1913

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3
Q

Since its inception, the REALTOR® Code of Ethics has required

Respect for other brokers’ exclusive relationships with clients
Cooperation among REALTORS®
Only a
Both a and b

A

Both a and b

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4
Q

The current Code Of Ethics is comprised of “Duties to:

Clients, Consumers and MLS Participants
Clients, Customers and Consumers
REALTORS®, Appraisers and the Public
Clients & Customers, the Public and other REALTORS®

A

Clients & Customers, the Public and other REALTORS®

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5
Q

The Code of Ethics has been amended over 40 times since 1913 because

The real estate business changes and evolves
The REALTORS® Political Action Committee (RPAC) has voted to do so
State and Federal laws have mandated the changes
The original charter calls for amendments every two years

A

The real estate business changes and evolves

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6
Q

REALTORS®

Urge the exclusive representation of clients
Willingly share the fruits of their experience
Strive to eliminate practices which may damage the public
All of the above

A

All of the above

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7
Q

In any instance where the Code of Ethics and the law conflict, which takes precedence?

The Code of Ethics
The Law
Decided by an administrative law judge
Decided by a majority vote of the local REALTOR® Board of Directors

A

The Law

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8
Q

When entering into a listing contract REALTORS® must advise sellers/landlords of

Company policies regarding compensation and cooperation
The fact that buyer agents will represent them if there is compensation offered
Possible dual agency if a an agent from another firm brings a buyer client
All of the above

A

Company policies regarding compensation and cooperation

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9
Q

SOP 3-6 essentially makes all accepted offers

Confidential
A material fact
Unconditional
Contractual

A

A material fact

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10
Q

REALTOR® websites must disclose the firm’s name and state(s) of licensure in a readily apparent manner.

True
False

A

True

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11
Q

Posting a rant on FaceBook about how a cooperating agent never showed up at a scheduled appointment to show your listing

Is okay if it’s true
Is fine if the agent hits reply and offers an explanation
May be a violation of Article 15 of the COE
May be a violation of Article 17 of the Code of Ethics

A

May be a violation of Article 15 of the COE

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12
Q

REALTOR® Alex checks the MLS for new listings and then mails a letter to the owners touting his sales excellence and track record. This action is

Super marketing and speaks to his success
Commonly known as “farming” and is very popular among new agents
Most likely tortious interference with the contract of another broker
A violation of Article 15 of the Code of Ethics

A

Most likely tortious interference with the contract of another broker

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13
Q

When Sandra Salesperson previews new listings or open houses she follows up with a letter to the owner asking that they consider hiring her if and when the current listing expires. This is

A great marketing idea
Legal since she’s not interfering with the current listing contract
A violation of Article 16 of the COE
A misdemeanor

A

A violation of Article 16 of the COE

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14
Q

When Sandra Salesperson previews new listings or open houses she follows up with a letter to the owner asking that they consider hiring her if and when the current listing expires. This is

A great marketing idea
Legal since she’s not interfering with the current listing contract
A violation of Article 16 of the COE
A misdemeanor

A

A violation of Article 16 of the COE

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15
Q

When acting as buyer broker, at first contact with a ‘For Sale By Owner’ it’s a good idea to

Pretend you’re a buyer to get the info you need
Disclose that you’re calling on behalf of your buyer client
Try to get the listing
All of the above

A

Disclose that you’re calling on behalf of your buyer client

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16
Q

According to SOP 3-2, any change in compensation offered for cooperative services must be communicated to the other REALTOR®

Within 10 days after submission of offers
Prior to the REALTOR® submitting an offer to purchase the property.
At least 10 days prior to closing
In writing by certified mail

A

Prior to the REALTOR® submitting an offer to purchase the property.

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17
Q

Who is responsible for enforcing the REALTOR® Code of Ethics?

The Grievance Committee at local Boards
The Arbitration Committee
The Board of Grievance at the state association
Boards and Associations of REALTORS®

A

Boards and Associations of REALTORS®

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18
Q

Who appoints members of the Grievance Committee?

The Executive Officer at the Board or Association of REALTORS®
The REALTOR® membership at large
The President of the Board or Association of REALTORS®
The Professional Standards Committee

A

The President of the Board or Association of REALTORS®

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19
Q

The Professional Standards Committee is appointed by

The Executive Officer at the Board or Association of REALTORS®
The REALTOR® membership at large
The President of the Board or Association of REALTORS®
The Grievance Committee

A

The President of the Board or Association of REALTORS®

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20
Q

Salespeople, before deciding to file an ethics complaint, should

Read the NAR Code of Ethics and Arbitration Manual
Consult with their manager or principal broker
Consider if it’s worth the time and effort
Write down the pros and cons of complaining about other REALTORS®

A

Consult with their manager or principal broker

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21
Q

The party who makes the complaint is called the

Complainant
Respondent
Prevailing party
Protestor

A

Complainant

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22
Q

The party who “wins” in an ethics or arbitration hearing is called the

Complainant
Winner
Prevailing party
Non-prevailing party

A

Prevailing party

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23
Q

Arbitration is not about wrongdoing.

True
False

A

True

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24
Q

Ethics complaints generally are not heard at the local board or association if the parties are from the same firm.

True
False

A

True

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25
Q

The Ombudsman’s role is to

Provide enhanced communication and problem solving
Adjudicate complaints in a quick, informal fashion
Determine if an ethics violation has even occurred
All of the above

A

Provide enhanced communication and problem solving

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26
Q

The screening committee who looks at complaints is called the

NAR Screening Committee
Professional Standards Committee
Professional Screening Committee
Grievance Committee

A

Grievance Committee

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27
Q

The Ethics Hearing Panel is comprised of members of the Professional Standards Committee.

True
False

A

True

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28
Q

Before deciding on authorized discipline, the Ethics Hearing Panel

Determines if the non-prevailing party has had previous offenses
Takes a 24 hour recess to discuss its options
Builds an additional cases for monetary damages
Queries the membership to find out if other members have had issues with this person.

A

Determines if the non-prevailing party has had previous offenses

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29
Q

The real purpose of authorized discipline in an Ethics Hearing is to educate the respondent and to vindicate the Code of Ethics.

True
False

A

True

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30
Q

The NAR requires mandatory mediation before any arbitration hearing may be held.

True
False

A

False

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31
Q

When two or more brokers each believe the sales commission should go them, this kind of case ensues at the board:

Civil
Ethical
Criminal
Procuring cause

A

Procuring cause

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32
Q

Agents who believe they were the procuring cause of a closed sale should

File a complaint
Request mediation at the local board
Contact their attorney
Consult with their principal broker

A

Consult with their principal broker

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33
Q

There is no predetermined rule of entitlement in

The SOP 11-1
An ethics hearing
A procuring cause case
Real estate

A

A procuring cause case

34
Q

In the Pathways to Professionalism, Respect for Property includes

In wintry weather, bring a snow shovel to clean off walkways
Allow unaccompanied access to a home that buyer is already in contract to buy
When showing property keep, all members of the group together
All of the above

A

When showing property keep, all members of the group together

35
Q

The Pathways to Professionalism is

Voluntary
Not all-inclusive
Not able to be used as an ethics complaint
All of the above

A

All of the above

36
Q

In May of 1908 a group of real estate men in the Chicago area formed

The National Association of REALTORS®
The National Real Estate Group
The National Association of Real Estate Exchanges
The National Council of Real Estate

A

The National Association of Real Estate Exchanges

37
Q

The National Association of REALTORS® is

America’s largest trade association
Bound by a strict Code of Ethics
Comprised of members who are engaged in various real estate activities
All of the above

A

All of the above

38
Q

Since its inception in 1913 the REALTOR® Code of Ethics has required

Membership dues
Adherence as a membership rule
Arbitration of contractual disputes among members
All of the above

A

Arbitration of contractual disputes among members

39
Q

To further support and amplify many of the Articles of the Code of Ethics, there are

Standards of Application
Standards of Performance
Standards of Use
Standards of Practice

A

Standards of Practice

40
Q

The Golden Rule is an aspirational concept noted in

Article 1
Article 10
The Preamble
The Prologue

A

The Preamble

41
Q

Before 1900 there were no real estate license laws in the US.

True
False

A

True

42
Q

The term REALTOR® is synonymous with “real estate licensee.”

True
False

A

False

43
Q

Article 1 of the Code of Ethics reminds us of the fiduciary duties REALTORS® owe their clients as well as the obligation to

Protect and promote the interests of customers
Treat all parties honestly
Follow the Golden Rule
Treat customers and clients equally

A

Treat all parties honestly

44
Q

Per SOP 1-13 buyer agents need to advise buyer client prospects that

The duty of confidentiality does not necessarily extend to sellers
Advertising costs are built into the buyer broker fee
Being a customer instead of a client gives a buyer more freedom
All of the above

A

The duty of confidentiality does not necessarily extend to sellers

45
Q

Article 3 of the COE does not include the obligation to share

Commissions
Fees
Compensation
All of the above

A

All of the above

46
Q

According to SOP 3-6, REALTORS® must disclose all accepted offers to

Only others from their own MLS
Appraisers who ask for comps as long as the appraiser is a REALTOR®
The local assessor’s office
Any broker seeking cooperation, even from another area

A

Any broker seeking cooperation, even from another area

47
Q

Article 12 of the COE states that REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their

Advertising
Marketing
Other representations
All of the above

A

All of the above

48
Q

Standard of Practice 15-2 includes the duty to not repeat false or misleading statements about other REALTORS®

In letters
Online
In person
All of the above

A

All of the above

49
Q

When REALTORS® are contacted by the client of another REALTOR® regarding the creation of an exclusive relationship to provide the same type of service, and REALTORS® have not directly or indirectly initiated such discussions, they may discuss the terms upon which they might enter into a future agreement.

True
False

A

True

50
Q

Without a termination agreement that states otherwise, REALTORS® who leave their current firm cannot

Continue to sell real estate in the same territory
Ask other agents to leave the firm to start a new brokerage company
Induce current clients to cancel their exclusive contracts with the firm
Sell real estate for a minimum of 6 months

A

Induce current clients to cancel their exclusive contracts with the firm

51
Q

Article 10 of the REALTOR® COE includes how many protected classes?

6
7
8
9

A

9

52
Q

When REALTORS® prepare opinions of real property value or price they must be knowledgeable about the type of property being valued.

True
False

A

True

53
Q

NAR’s Code of Ethics imposes duties on

Real estate professionals who choose to become REALTORS®
Only real estate salespeople and brokers who join NAR
All real estate licensees
All members of the NDRC

A

Real estate professionals who choose to become REALTORS®

54
Q

The Grievance Committee is comprised of members of the

REALTOR® board or association
REALTOR® board and members of the community
Professional Grievance Association
Local board, the local Chamber of Commerce and the local community

A

REALTOR® board or association

55
Q

When members are selected to serve on the Professional Standards Committee, final approval and confirmation is made by

The Executive Officer at the Board or Association of REALTORS®
The REALTOR® membership at large
The Board of Directors of the Board or Association of REALTORS®
The Grievance Committee

A

The Board of Directors of the Board or Association of REALTORS®

56
Q

What often resolves questions, differences and concerns among REALTORS®?

Open, constructive discussion
Private, legal advice
Threats of filing a complaint
All of the above

A

Open, constructive discussion

57
Q

Dispute resolution processes are

Quicker
Less costly
More informal
All of the above

A

All of the above

58
Q

In an ethics or arbitration hearing the accused party is called the

Complainant
Perpetrator
Respondent
Non-prevailing party

A

Respondent

59
Q

The party who “loses” in an ethics or arbitration hearing is called the

Complainant
Loser
Prevailing party
Non-prevailing party

A

Non-prevailing party

60
Q

The types of hearings that can be afforded to REALTORS® are

Ethics and Arbitration
Ethics and Sanctions
Ethics and Depositions
Ethics and Summary Proceedings

A

Ethics and Arbitration

61
Q

Who can file an ethics complaint?

Salespeople who are REALTORS®
Brokers who are REALTORS®
The public
All of the above

A

All of the above

62
Q

As of January 1, 2016 Ombudsman Services must be offered to members, clients and consumers.

True
False

A

True

63
Q

Ombudsman Services

Are at the discretion of the local board or association of REALTORS®
Have been mandatory since January 1, 2016
Are available to only REALTOR® members
Must be purchased from the American Bar Association

A

Have been mandatory since January 1, 2016

64
Q

The Grievance Committee does not

Attend Professional Standards training
Rule on the alleged violation
Have to be REALTOR® members
All of the above

A

Rule on the alleged violation

65
Q

After an ethics hearing is complete the hearing panel

Goes into a closed session
Prepares a findings of fact
Votes on who is the prevailing party
All of the above

A

All of the above

66
Q

Authorized discipline in an Ethics case can include a

Letter of reprimand, suspension from MLS and monetary damages
Letter of warning, probation for up to one year, and a fine of up to $5,000
Letter of warning, probation for up to one year, and a fine of up to $15,000
None of the above

A

Letter of warning, probation for up to one year, and a fine of up to $15,000

67
Q

If a non-prevailing party in an Ethics Hearing has had recent, prior offenses

The Hearing Panel refers the discipline to the Board of Directors
The Board of Directors must evaluate the possibility of expulsion from membership
The Hearing Panel will assess stiffer penalties
The President of the Board of Directors helps decide on the discipline

A

The Hearing Panel will assess stiffer penalties

68
Q

The real purpose of authorized discipline in an Ethics Hearing is to

Teach a lesson to the non-prevailing party
Restore faith in the Code of Ethics
Separate the ethical members from the non-ethical ones
Educate the respondent and to vindicate the Code of Ethics

A

Educate the respondent and to vindicate the Code of Ethics

69
Q

A principal broker may file an arbitration complaint against

REALTOR® principal broker from another firm
REALTOR® principal brokers in more than one firm
A REALTOR® firm itself
All of the above

A

All of the above

70
Q

In an Arbitration complaint, if the parties agree to mediate but then cannot reach a resolution

The case is deemed void
The parties must default to splitting the commission equally
The parties may choose to arbitrate
The decision is rendered by a majority vote of the Board of Directors

A

The parties may choose to arbitrate

71
Q

The Professional Standards Hearing Panel’s function is to conduct a full “due process” hearing with

Sworn testimony
Documentary evidence
Witnesses
All of the Above

A

All of the Above

72
Q

Procuring cause is a very complicated issue, and there are no “precedents” since every single case is different

True
False

A

True

73
Q

In Procuring Cause Arbitration Hearings there are no appeals except in regard to due process.

True
False

A

True

74
Q

In an arbitration hearing the party who is not successful in being awarded the money is the

Non-prevailing party
Loser
Perpetrator
Unsub

A

Non-prevailing party

75
Q

In a procuring cause arbitration hearing

Brokers may wind up splitting the monies in dispute
Agents may attend with their broker’s permission
The prevailing party may appeal
All of the above

A

Agents may attend with their broker’s permission

76
Q

Knock and announce yourself loudly before entering any closed room demonstrates Respect for the Public.

True
False

A

True

77
Q

Which of these statement applies to Respect to Peers in the Pathways to Professionalism?

Notify the listing broker if there seems to be inaccurate information on a listing
Follow MLS deadlines for inputting new listings
Remove your shoes in homes that have white carpeting
Share your lockbox e-key with agents who don’t have one

A

Notify the listing broker if there seems to be inaccurate information on a listing

78
Q

The NAR list of recommended, professional courtesies is called

Pathways for REALTOR® Practices
Pathways for REALTORS®
Pathways to Professionalism
Pathways to Positive Practice

A

Pathways to Professionalism

79
Q

The Pathways to Professionalism includes

Respect for Self
Respect for Country
Respect for Property
Respect for Fed Regs

A

Respect for Property

80
Q

The REALTOR® Code of Ethics

Protects the buying and selling public
Protects the general public
Promotes a competitive real estate market place
All of the above

A

All of the above

SC Real Estate (5 decks)

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