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Fundamentals of Real Estate > Unit 3: Ethics > Flashcards

Unit 3: Ethics Flashcards

1
Q

Ethics definition

A

the values and beliefs held by an individual which guide their actions. The standards of conduct adopted and practiced within a culture or society.

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2
Q

Morals definition

A

a set of beliefs held by an individual and founded on fundamental principles of right and wrong.

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3
Q

Professional Standards are…

A

ethical rules that govern the day-to-day activities of persons who adopt such standards

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4
Q

What are the 3 levels of Moral Development according to Kohlberg?

A

1) Level 1: Pre-Conventional
2) Level 2: Conventional
3) Level 3: Post-Conventional

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5
Q

Which of the moral levels is based on obedience that is rooted in avoiding punishment / seeking reward?

A

Level 1 : Pre-Conventional

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6
Q

Which of the moral levels is based on an individual’s reflection and analysis of issues?

A

Level 3: Post-Convention

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7
Q

Which of the moral levels is based on an individual’s conformance with social convention?

A

Level 2: Conventional

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8
Q

This form of ethics is about guiding people in making decisions that maximize others’ welfare or happiness while minimizing harm or injury.

A

Utilitarian Ethics

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9
Q

This form of ethics is about the intention of an individual’s actions towards the resolution of a dilemma as opposed to just its consequences. Doing the right thing because it’s the right thing to do.

A

Duty-Based Ethics

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10
Q

What are the 4 steps in the Ethical Decision-Making Model?

A

1) Recognize the dilemma
2) Analyze using the checklist
3) Test your options using the checklist
4) Implement the best option

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11
Q

There are three types of responses to an Ethical Dilemma:

A

1) Physical Response (e.g. sweating, tension, increased heart rate)
2) Intuitive Response (e.g. sensing something isn’t right)
3) Intellectual Response (e.g. from learned knowledge of standards of practice)

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12
Q

Ethical Dilemma Checklist

A
  • Defined as a dilemma?
  • Defined by a stranger seeing it for the first time as a dilemma?
  • How did it become a dilemma?
  • Caused by an omission or commission? (action not taken vs. taken)
  • Is it time-sensitive?
  • Was the dilemma caused by timing?
  • Does the brokerage owe any party loyalty?
  • Who needs to make this decision?
  • Does my decision rely on the decision / action of others?
  • Can I discuss with affected parties before deciding?
  • Do I have a self-interest in the outcome?
  • Do I have a conflict of interest?
  • What are the options available to me for resolution?
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13
Q

Ethical Checklist for testing solutions:

A
  • Would my decision be in accordance with the law, the Act, Rules, etc.?
  • How would I explain my actions in court?
  • Does it comply with my brokerage policies?
  • Would it negatively impact the brokerage?
  • How would my colleagues, friends, and family feel about it?
  • How would it look if local media reported on my conduct?
  • Does it have the potential to harm anyone?
  • Would it be the ‘right thing to do’?
  • Would it create unintended issues?
  • Would it remain appropriate over time?
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14
Q

The Golden Rule is…

A

do unto others as you would have them do unto you

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15
Q

Practices related to Brokerage Structure include:

A
  • Abiding by policies of the brokerage
  • Trading only in the name of the brokerage
  • Displaying brokerage name on ads
  • Using agency relationship model of that brokerage
  • Provide brokerage with all documents
  • Seeking advice from your broker
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16
Q

Practices related to Legislative Compliance include:

A
  • Following compliance with the Act and Rules (and being mindful of changes to those)
  • Follow all level of laws
  • Notifying RECA of any changes in your info
  • Cooperate with RECA as required
17
Q

Practices related to Professional Conduct are:

A
  • Establish what the relationship is with consumers and act according to what that is
  • Know what your expertise limitations are
  • Educate clients to the best of your ability
  • Use the 5 Ds of Role Clarity and Consistency
  • Fulfill obligations and fiduciary duties
  • Disclose conflicts of interest and pertinent facts
  • Complete written disclosures / acknowledgments
  • Complete paperwork carefully
  • Confirm any information or claims are verified
  • Maintain confidentiality
  • Refuse unlawful requests
18
Q

3 Options for dealing with discourteous behaviour:

A

1) Act professional and courteous
2) Speak privately with the individual
3) Seek advice from their broker

19
Q

Tort Law is…

A

a private civil matter typically resolved through mediation, arbitration, or legal action in the court. Generally a person believes they have been harmed by another person’s actions.

20
Q

Does Tort include breach of conduct?

A

No

21
Q

What are the 3 types of Torts?

A

1) Negligent Torts
2) Intentional Torts
3) Strict Liability Torts

22
Q

Negligent Tort includes:

A

any wrong characterized by carelessness or inattentiveness, including failure to exercise reasonable care to avoid injuring others.

23
Q

Intentional Torts include:

A

any injury that resulted from willful and aggressive conduct or actions designed to harm someone / their property. (e.g. assault, fraud, theft, defamation, slander, trespass)

24
Q

Strict Liability Torts include:

A

any harm that comes regardless of who was responsible for it. Focusses on the act and who committed it rather than the care taken or intent behind it. (e.g. using hazardous products, storying explosives, conducting blasting)

25
Q

Ways a brokerage can reduce the risk of vicarious liability:

A
  • Purchase insurance against negligent acts
  • Enforce brokerage policies
  • Train and supervise staff
26
Q

Money to compensate consumers who suffer a financial loss as a result of an agent committing fraud, breach of trust or failure to disburse trust money comes from …

A

Real Estate Assurance Fund

27
Q

Money to compensate consumers for errors and omissions by the agent come from…

A

Real Estate Insurance Exchange (REIX)

28
Q

Is it mandatory for agents to participate in the REIX program under the Rules?

A

Yes - and all levels from Brokerage to Broker to Associate Broker and Associate

29
Q

Exclusions in the REIX policy include:

A
  • Activities that aren’t defined as trades
  • Transfer of title activities (e.g. sickness, mental disorders, disease, death)
  • Damage to or loss of tangible property (e.g. water damage from tap left on)
  • Dishonest, fraudulent, criminal acts or omissions
  • Exemplary damages
  • Libel (misrepresentation in words or pictures)
  • Slander (misrepresentation by oral utterance or gesture)
  • Disputes about commissions or fees
  • Contracted services outside of real estate
  • Any personal trades by agents or their spouses
30
Q

What is the max the Real Estate Assurance Fund will award consumers?

A

$35,000 / claimant / event
Maximum $350,000 to all claimants for a single event

Fundamentals of Real Estate (19 decks)

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