Unit 8 Exam

Question 1

Every member of the National Association of REALTORS® must take at least two and a half hours of ethics training every year.

Answer 1

F

Question 2

The emphasis in the National Association of REALTORS® TV campaign has shifted from public awareness to public advocacy.

Answer 2

T

Question 3

The conduct of treating other people kindly and not giving them pain is a part of Jacob Abbott’s principle of “politeness.”

Answer 3

T

Question 4

Real estate agents have moved from the bottom of the Gallup Poll list of ethical professions to the top position.

Answer 4

F

Question 5

The concept of “leading from the middle” is one of the new megatrends set forth by Steven Covey.

Answer 5

F

Question 6

Before providing substantive real estate services to a prospect, licensees are legally and ethically required to ask whether the prospect is already being represented by another agent.

Answer 6

T

Question 7

Gender identity has now been added to the nine protected classes listed in Article 10 of the Code.

Answer 7

T

Question 8

Responding to other agents’ calls, faxes, and emails promptly and courteously is included in the Pathways to Professionalism as showing “respect for the public.”

Answer 8

F

Question 9

Tennessee state law requires that licensees disclose latent defects and stigmas on properties.

Answer 9

F

Question 10

Tennessee state law requires that licensees disclose latent defects and stigmas on properties.

Answer 10

F

Question 11

The decision of either an ethics or an arbitration hearing panel can be appealed to the board of directors.

Answer 11

F

Question 12

The Code of Ethics and Arbitration Manual contains specific sanctions that must be followed for each Code violation.

Answer 12

F

Question 13

The Grievance Committee is responsible for making a final judgement on whether a violation of one of the articles of the Code has occurred.

Answer 13

F

Question 14

Match:

Advanced written informed consent
Flip
Until closing
Cooperating agent
Representation
Gender identity

A)
Protected category under the Code of Ethics, added in 2014

B)
Responsible party to ascertain commission offered by listing firm

C)
Must be obtained before practicing dual agency in Tennessee

D)
Time period to continue to present offers to the seller

E)
What does not have to be given in order to receive compensation

F)
Buying property, then selling for quick profit

Answer 14

Advanced written informed consent = C

Flip = F

Until closing = D

Cooperating agent = B

Representation = E

Gender identity = A

Question 15

An unethical tactic of offering a property for sale with the intent not to sell at the price advertised is

A)
lis pendens.
B)
bait and switch.
C)
subrogation.
D)
pur autre vie.

Answer 15

Explanation

The answer is bait and switch. Bait and switch is an unethical practice of deceiving the public.

Question 16

Article 1 of the Code of Ethics states that licensees should be honest and fair with all parties, and should promote and protect the interests of their

A)
broker.
B)
affiliate broker.
C)
client.
D)
customer.

Answer 16

Explanation
The answer is client. The client is the most important party in the transaction, even more important than the agent’s own self-interest.

Question 17

If a consumer asks a licensee to give legal advice about a real estate situation in which the consumer is involved, the licensee should

A)
recommend that the consumer consult an attorney for legal advice.
B)
limit the legal advice to not more than 50 words.
C)
ask the licensee’s broker to give the legal advice.
D)
give the best legal advice the licensee can render.

Answer 17

Explanation
The answer is recommend that the consumer consult an attorney for legal advice. Unless licensed separately as a Tennessee attorney, licensees may not give legal advice.

Question 18

According to Article 7, to receive compensation from more than one party, it must be disclosed in writing and

A)
neither party needs to be represented.
B)
both parties must be represented.
C)
it will always be offered by the listing firm.
D)
at least one of the parties must be represented.

Answer 18

Explanation
The answer is neither party needs to be represented. Compensation can be negotiated without either party being represented. If compensation is received from both parties, disclosure must be made to both parties.

Question 19

All members of the National Association of REALTORS® (NAR) are required to take two and a half hours of ethics training

A)
annually.
B)
every three years.
C)
every licensing period.
D)
every four years.

Answer 19

Explanation
The answer is every two years. The NAR requirement for ethics training is two and a half hours biennially. Many states require a specific number of hours of ethics training every licensing period or every two years.

Question 20

Enforcement of the NAR Code is primarily enforced by

A)
a circuit court.
B)
the League of Women Voters.
C)
the local board or association level.
D)
TREC.

Answer 20

Explanation
The answer is the local board or association level. A written Code of Ethics has little meaning if there is no enforcement of the ethical principles included in the Code. Although in some circumstances, a case may be referred to the state level.

Question 21

All of the following are recommended (not mandatory) sanctions provided by the NAR, EXCEPT

A)
revocation of member’s license.
B)
expulsion from membership for one to three years.
C)
suspension of MLS rights and privileges for not less than 30 days or more than one year.
D)
letter, warning, or reprimand, with a copy for the member’s file.

Answer 21

Explanation
The answer is revocation of member’s license. Only the state licensing authority (Tennessee Real Estate Commission) can revoke a member’s license to practice real estate.

Question 22

If other real estate services do not conflict with a current agency, licensees may

A)
disregard the Code of Ethics in presenting those services.
B)
not offer those services to another licensee’s client.
C)
offer those services to another licensee’s client.
D)
use the MLS to target other licensee’s clients.

Answer 22

Explanation
The answer is may offer those services to another licensee’s client. As long as the services do not conflict with the present agency, property management as opposed to general brokerage, there is no ethics violation.

Question 23

A property has been listed, and the listing is placed in the multiple listing service (MLS). Because the MLS offers cooperation, cooperating brokers may

A)
expect a 50/50 split on the commission.
B)
not expect an offer of compensation.
C)
expect an offer of compensation.
D)
expect a referral fee.

Answer 23

Explanation
The answer is not expect an offer of compensation. It is up to cooperating brokers to establish offers of compensation before submitting their buyer’s offer.

Question 24

When asked about the racial, religious, or ethnic makeup of a neighborhood, residential licensees should

A)
answer the question as accurately as possible.
B)
not comment.
C)
answer the question in writing to reduce risk.
D)
gather the information from a reputable source.

Answer 24

Explanation

The answer is not comment. Real estate licensees should never answer questions that require a discriminatory answer.

Question 25

A prime source of fraud and falsification occurring in today’s real estate market is in

A)
minority lending.
B)
short sales.
C)
rental housing.
D)
lower interest rates.

Answer 25

Explanation
The answer is short sales. Due to the complexities of short-sale transactions, many examples of fraud and falsification are found in that area of the market.

Question 26

A buyer signed a purchase agreement yesterday. He has no idea what he signed because he has not been given a copy of the agreement. Article 9 of the code states that signers of real estate documents must be given a copy of what they sign

A)
at the time of signing or initialing.
B)
after the contract becomes a binding agreement.
C)
at the closing.
D)
within 48 hours of signing or initialing.

Answer 26

Explanation
The answer is at the time of signing or initialing. In addition, Article 9 states that to best protect all parties, all real estate agreements must be in writing.

Question 27

A buyer’s agent tells a listing agent that he will not submit his buyer’s offer unless the listing agent pays him more than the 2.5% cooperative split offered by the listing agent on a real estate transaction. The buyer’s agent’s actions are

A)
ethical.
B)
perfectly acceptable because most cooperative agents expect at least a 3% split.
C)
a violation of fair housing laws.
D)
unethical.

Answer 27

Explanation
The answer is unethical. Agents may not make the submission of an offer contingent upon the listing agent paying more than offered in a cooperative split.

Question 28

A listing agent has received multiple offers on her listing. Article 1 states that before informing cooperating agents in that transaction, the listing agent must

A)
obtain the seller’s permission to disclose the multiple offers.
B)
share the information about the listings with other affiliate brokers in the firm.
C)
be prepared to present them in the order in which they were first received.
D)
photocopy all of the offers.

Answer 28

Explanation
The answer is obtain the seller’s permission to disclose the multiple offers. Article 1 states that before disclosure of multiple offers on the same property, licensees must obtain the seller’s permission to do so.

Question 29

The Code of Ethics and Arbitration Manual does not provide mandatory sanctions for specific violation, but offers recommendations. Which of the following is not a recommended sanction?

A)
Probation for five years
B)
Letter of warning with copy for member's file
C)
Termination of MLS rights and privileges for one to three years
D)
Suspension of MLS rights

Answer 29

Explanation

The answer is probation for five years. Probation is part of the list of suggestions, but for not more than one year.

Question 30

Article 3 of the Code of Ethics reminds licensees that if a listing is placed in the multiple listing service (MLS) as an offer of cooperation, the cooperating broker may

A)
assume the listing broker is offering 50% of whatever was negotiated as commission.
B)
not expect compensation just because cooperation is offered.
C)
expect to receive a cooperative split.
D)
expect to receive not less than 3% of the negotiated sales price as commission.

Answer 30

Explanation
The answer is not expect compensation just because cooperation is offered. Article 3 reminds licensees that an offer of cooperation does not imply an offer of compensation and that any offer of compensation to a cooperating broker should be ascertained by the cooperating broker before presenting the buyer’s offer.

Question 31

An agent is a residential specialist. He has never sold a commercial property but has been asked by the owners of the mall at Green Hills to list the entire property for sale. The listing price is $100 million with a 10% commission. To be ethical, the agent should

A)
fake a resume so that he appears to be a commercial professional.
B)
immediately take the listing and give it his best efforts.
C)
get a job at the mall to get a feel for commercial business.
D)
disclose his lack of expertise in commercial sales.

Answer 31

Explanation
The answer is disclose his lack of expertise in commercial sales. After the disclosure, with his client’s permission, the agent may solicit help from a commercial broker or give it his best efforts alone, if the client approves.

Question 32

A buyer asks her agent to recommend a home inspection service. Coincidently, the agent owns an inspection service and recommends it to the buyer. Article 6 advises licensees that in making such a recommendation, the licensee must

A)
recommend competitor’s inspection services as well.
B)
acknowledge any compensation earned as a result of the referral.
C)
do the inspection himself.
D)
not mix real estate services with inspection services.

Answer 32

Explanation
The answer is acknowledge any compensation earned as a result of the referral. Article 6 states that if referral fees are received for recommending the services of other businesses or referring the prospect to a business owned by the licensee, any fees earned and the ownership position must be disclosed.

Question 33

In Doing the Right Thing: A Real Estate Practitioner’s Guide to Ethical Decision Making, Deborah Long established a practical style of writing that is continued in Ethics for Real Estate Professionals, especially in the section devoted to

A)
applied ethics with case studies and questions.
B)
a bridge from talking ethics to doing ethics.
C)
examples from NAR Code of Ethics.
D)
avoiding unethical acts.

Answer 33

Explanation
The answer is applied ethics with case studies and questions. Deborah Long continues her practical style of writing in part three of this book, using case studies and questions on many subjects.

Question 34

There are many excellent books based on the study of real estate ethics. One that is based heavily on the NAR Code of Ethics, containing chapters on prospecting, listings, advertising, and negotiating provide practical illustrations of working within the Code in real life situations is

A)
Moral Courage.
B)
Real Estate the Ethical Way.
C)
Real Estate Ethics.
D)
Ethics for Real Estate Professionals.

Answer 34

Explanation
The answer is Real Estate the Ethical Way. Bob Hunt used his own experiences as practical illustrations of working within the Code in real-life situations for his book that is heavily based on the NAR Code of Ethics.

Question 35

The Federal Trade Commission (FTC) cautions consumers to beware of all of the following EXCEPT

A)
sexual harassment.
B)
mortgage loan auditors.
C)
forensic loan auditors.
D)
foreclosure prevention auditors.

Answer 35

Explanation
The answer is sexual harassment. Many “forensic loan auditors” charge a fee for a review of a homeowner’s mortgage loan documents to determine whether the lender complied with state and federal mortgage lending laws. The implication is that the audit may help to avoid foreclosure or accelerate the loan modification process, both of which are highly unlikely.

Question 36

An agent is a residential specialist. He has just been offered the listing of a major regional shopping center. Article 11 states that, at a minimum, he should

A)
refer the listing to a commercial specialist.
B)
disclose his lack of expertise.
C)
take the listing at a reduced commission.
D)
refuse the listing because it is out of his area of specialty.

Answer 36

Explanation
The answer is disclose his lack of expertise. Though he may refer the listing, with the owner’s permission, he might prefer to obtain the assistance of the commercial specialist and keep the listing.

Question 37

When buyers or sellers sign or initial a sales contract, the licensee(s) involved should give them

A)
a copy of what they signed or initialed.
B)
legal advice about what they just signed.
C)
the company name and company phone number.
D)
a share of the commission.

Answer 37

Explanation
The answer is a copy of what they signed or initialed. License law and ethical conduct both require that all parties to the transaction receive copies of what they sign at the time of execution.

Question 38

If a listing broker changes an offer of compensation, it must be communicated to a cooperating broker

A)
after the cooperating broker submits the buyer’s offer.
B)
before closing.
C)
at closing.
D)
before the cooperating broker submits the buyer’s offer.

Answer 38

Explanation

The answer is before the cooperating broker submits the buyer’s offer. To do it any other way would be an ethics breach.

Question 39

If a licensee mass mails a geographic area to solicit business and one of the solicitations arrives at the home of another licensee’s client, the licensee doing the mass mailing

A)
has not violated ethical conduct.
B)
must go to the client’s home as ask the owner to give up the solicitation letter.
C)
must cease the mailing activity at once.
D)
must apologize to the listing agent.

Answer 39

Explanation
The answer is has not violated ethical conduct. A mass mailing or mass phone calling that inadvertently results in contacting another agent’s client is not a violation of ethics.

Question 40

In Real Estate Ethics: Good Ethics = Good Business, William Pivar and Donald Harlan include a section in several chapters that is a practical guide to

A)
making a bridge from talking ethics to doing ethics.
B)
avoiding unethical acts.
C)
promoting moral courage.
D)
following the NAR Code of Ethics.

Answer 40

Explanation
The answer is avoiding unethical acts. Many of the chapters in Real Estate Ethics include a section on avoiding unethical acts, complete with examples and questions.

Question 41

In designing or placing information on a real estate website, it is unethical to

A)
include the equal housing opportunity logo.
B)
use content developed by others without attribution.
C)
include a photo of the agent.
D)
list designations earned by the agent.

Answer 41

Explanation
The answer is use content developed by others without attribution. Credit must be given when using other people’s material on a real estate website, especially if the material is copyrighted.

Question 42

An agent has a buyer willing to pay her broker a finder’s fee if she locates the ideal property; coincidently, she lists the ideal property, and the seller of the property has agreed to pay a commission. The agent’s broker may accept compensation

A)
from both parties only after obtaining legal advice.
B)
never.
C)
from both parties only with full disclosure and with written permission from both parties.
D)
from both parties without disclosure because they both consented in writing.

Answer 42

Explanation
The answer is from both parties only with full disclosure and with written permission from both parties. Full disclosure is required to receive compensation from more than one party in the same transaction.

Question 43

If a licensee notices a response to an article he printed on his real estate blog that is inaccurate, false, or misleading, the licensee should take action to

A)
correct or remove the statement.
B)
leave it alone; it will eventually go away.
C)
move the information to another area of the blog.
D)
put the information in bold font or quotation marks.

Answer 43

Explanation
The answer is correct or remove the statement. The licensee should not repost the statement. It should be corrected or removed, and not forwarded or repeated in person, by writing, by technological means, or by any other means.

Question 44

The inward feeling that makes us peaceful and happy when we do right and condemns us when we do wrong is

A)
fidelity.
B)
conscience.
C)
truth.
D)
conscientiousness.

Answer 44

Explanation

The answer is conscience. Conscientiousness is obeying your conscience.

Question 45

Article 2 states that if a licensee is aware of a physical or environmental problem with the property, the licensee must make sure that

A)
the licensee writes a check at closing to the buyer to cover the cost of repairs.
B)
the buyer brings enough money to have the problem fixed.
C)
the seller fixes the problem.
D)
disclosure of the problem is made.

Answer 45

Explanation
The answer is disclosure of the problem is made. Disclosure of knowledge of an adverse fact is mandatory under the Code of Ethics and state license law even if the adverse fact is a latent defect known to the seller or the licensee.

Question 46

Not overreacting to negative behavior or criticism is Stephen Covey’s principle of

A)
leading a balanced life.
B)
being synergistic.
C)
radiating positive energy.
D)
believing in other people.

Answer 46

Explanation
The answer is believing in other people. The principle of believing in other people includes not overreacting to negative behavior, criticism, or human weakness and believing in the unseen potential of all people.

Question 47

Article 1 reminds us that dual agency is legal with the advanced informed consent of

A)
the seller.
B)
the buyer.
C)
the broker.
D)
both parties.

Answer 47

Explanation

The answer is both parties. Both must agree in advance to allow the dual agency to occur.

Question 48

All of the following are principles covered in Abbott’s Primer of EthicsEXCEPT

A)
fraud.
B)
truth.
C)
conscience.
D)
honesty.

Answer 48

Explanation
The answer is fraud. An act of fraud would fall under the principle of honesty, but it is not listed as a separate principle in Abbott’s Primer.

Question 49

The checkpoints that Rushworth Kidder suggests as a way to promote moral courage in ourselves include all of the following EXCEPT

A)
avoiding the pitfalls.
B)
asserting physical courage.
C)
standing for conscience.
D)
assessing the situation.

Answer 49

Explanation
The answer is asserting physical courage. Kidder’s observation is that physical courage is less in demand in today’s world. He hopes that young people may turn to providing moral courage as a mark of maturity in the 21st century.

Question 50

All of following statements regarding the Code of Ethics are true EXCEPT

A)
The Code of Ethics became mandatory for membership in 1924.
B)
The articles of the Code are divided into three categories: Duties to Clients and Customers, Duties to the Public, and Duties to REALTORS®.
C)
The Code is referred to as a “living document” because it is carefully reviewed each year.
D)
An ethics complaint may be charged against any of the 17 articles or related Standards of Practice.

Answer 50

Explanation
The answer is an ethics complaint may be charged against any of the 17 articles or related Standards of Practice. An ethics complaint must be filed against one of the articles. Standards of Practice may be cited as related information to the charge.

Question 51

To comply with truth in advertising, Article 12 recommends disclosure of professional status when selling or buying real estate. As a seller, whether selling through the firm or outside the firm, the recommended disclosure phrase is

A)
owner-REALTOR®.
B)
REALTOR®-owner.
C)
agent-REALTOR®.
D)
owner-agent.

Answer 51

Explanation
The answer is owner-agent. Any of the other choices would probably work, as long as the licensee has joined the trade association. The term owner-agent is generic and applies to all licensees.

Question 52

If a licensee is working with a customer and NOT representing a client, the licensee still has the obligation to

A)
protect and promote the interests of the customer.
B)
be loyal to the customer's interest.
C)
treat the customer honestly.
D)
advise and counsel the customer.

Answer 52

Explanation

The answer is treat the customer honestly. The remaining choices indicate duties to clients, not customers.

Question 53

An investor who owns several rental properties is MOST likely to consider letting a property go into “strategic default” in which of the following circumstances?

A)
Occupancy rate has increased
B)
Market rental rates have decreased
C)
No funds are available for needed repairs
D)
Amount due on mortgage exceeds current value of the property

Answer 53

Explanation
The answer is amount due on mortgage exceeds current value of property. Even though the investor has the financial ability to make the payments, being “upside-down” on the mortgage, with no anticipated increase in value, may make letting the property go into default an attractive option.

Question 54

Stephen Covey notes in Principle-Centered Leadership that one of the characteristics of principle-centered leaders is they

A)
believe in themselves, not other people.
B)
believe in balanced lives.
C)
discontinue learning at an early age.
D)
believe in working 24/7.

Answer 54

Explanation

The answer is believe in balanced lives. Balance includes socially, intellectually, and physically.

Question 55

The term strategic default is a possible euphemism for

A)
walking away from a mortgage obligation.
B)
short sales.
C)
avoiding foreclosure.
D)
seeking a deficiency judgment.

Answer 55

Explanation
The answer is walking away from a mortgage obligation. Many investors today are considering walking away from their mortgage obligations when the properties are valued less than the mortgage amount or when investment properties are no longer profitable.

Question 56

In an article published by the Institute for Ethical Leadership, Berghofer and Schwartz say benefits of ethical leadership occur at three levels: the team, the organization, and the

A)
individual.
B)
country.
C)
business.
D)
world.

Answer 56

Explanation

The answer is individual. All three benefit by fostering positive relationships through ethical leadership.

Question 57

Principle-centered leaders are continually and externally learning in all of the following ways EXCEPT

A)
developing new skills.
B)
asking questions.
C)
taking classes.
D)
seeing life as a mission.

Answer 57

Explanation
The answer is seeing life as a mission. The actions for continual learning are external activities. Seeing life as a mission is an internal response to being service-oriented.

Question 58

An article by Berghofer and Schwartz published by the Institute for Ethical Leadership expresses the benefits of ethical leadership occurring at all three levels of organizational life, which include all of the following EXCEPT

A)
the individual.
B)
the organization.
C)
the team.
D)
the consumer.

Answer 58

Explanation
The answer is the consumer. This particular article stresses the benefits of ethical leadership within an organization. This would ultimately carry over as a benefit to consumers, but the focus of this article is on the internal benefits to an organization.

Question 59

An agent has checked the do-not-call lists and is performing random real estate phone solicitation using a cross-reference directory. She has inadvertently called the listing client of another agent. The agent

A)
has violated ethical conduct.
B)
has done nothing improper.
C)
should immediately call the other agent and apologize.
D)
should attempt to solicit the client for future business.

Answer 59

Explanation
The answer is has done nothing improper. She has done nothing improper because she was making random calls and was not targeting anyone’s client.

Question 60

Cooperating brokers may place their Sold sign on a property

A)
the day before closing.
B)
only with the consent of the buyer.
C)
only with the consent of the listing broker.
D)
only with the consent of the buyer’s broker.

Answer 60

Explanation
The answer is only with the consent of the listing broker. It is the property of the listing broker’s client until title passes.

Question 61

One thing that licensees do NOT have to continue doing after a binding agreement has been reached is to

A)
continue to market the property.
B)
stay in touch with their client.
C)
practice due diligence.
D)
keep their broker informed of problems that could affect the firm.

Answer 61

Explanation
The answer is continue to market the property. Once binding agreement has been reached, the licensee’s obligation to market the property stops.

Question 62

If a licensee notices a response to an article he printed on his real estate blog that is inaccurate, false, or misleading, the licensee should take action to

A)
leave it alone; it will eventually go away.
B)
move the information to another area of the blog.
C)
put the information in bold font or quotation marks.
D)
correct or remove the statement.

Answer 62

Explanation
The answer is correct or remove the statement. The licensee should not repost the statement. It should be corrected or removed, and not forwarded or repeated in person, by writing, by technological means, or by any other means.

Question 63

What you do today may affect your reputation and your business

A)
for only a little while.
B)
for years to come.
C)
during normal daytime business hours only.
D)
only after hours.

Answer 63

Explanation

The answer is for years to come. Real estate is a reputation business. Keep your reputation clean.

Question 64

In Rushworth Kidder’s book Moral Courage: Taking Action When Your Values Are Put To The Test, one of Kidder’s checkpoints to promote moral courage within ourselves and for others is

A)
face the pitfalls head on.
B)
assess the situation (Is the problem lack of valor or fortitude?).
C)
give in to hardships.
D)
forget about the dangers, forge ahead.

Answer 64

Explanation
The answer is assess the situation (Is the problem lack of valor or fortitude?). This and other checkpoints help establish a bridge between talking ethics and doing ethics.

Question 65

If the Grievance Committee determines that there may be a violation of the Code, the next step is to

A)
hear both sides of the story from complainant and respondent.
B)
determine the procuring cause in a request for arbitration.
C)
refer the case to the Professional Standards Committee.
D)
select an ethics hearing panel.

Answer 65

Explanation
The answer is to refer the case to the Professional Standards Committee. The role of the Grievance Committee is only to determine if there may be a violation. The case is then either dismissed or referred to the Professional Standards Committee for a hearing.

Question 66

After a closing, a cooperating broker may place a Sold sign on a property only with written permission of the

A)
listing firm’s broker.
B)
seller.
C)
broker.
D)
buyer.

Answer 66

Explanation
The answer is buyer. After closing, the property belongs to the buyer. The cooperating agent needs the buyer’s permission to place a Sold sign there.

Question 67

All of the following are dimensions of the human personality referred to by Covey in Principle-Centered LeadershipEXCEPT

A)
psychic.
B)
mental.
C)
spiritual.
D)
physical.

Answer 67

Explanation
The answer is psychic. One of Covey’s characteristics of principle-centered leaders is the exercise for self-renewal that includes the four dimensions of the human personality: physical, mental, emotional, and spiritual.

Question 68

An agent has a buyer willing to pay her broker a finder’s fee if she locates the ideal property; coincidently, she lists the ideal property, and the seller of the property has agreed to pay a commission. The agent’s broker may accept compensation

A)
from both parties only after obtaining legal advice.
B)
never.
C)
from both parties without disclosure because they both consented in writing.
D)
from both parties only with full disclosure and with written permission from both parties.

Answer 68

Explanation
The answer is from both parties only with full disclosure and with written permission from both parties. Full disclosure is required to receive compensation from more than one party in the same transaction.

Question 69

An agent expects to receive a commission from a represented seller and an unrepresented buyer at the same closing. Article 7 states that he may

A)
not receive commissions from more than one party in the same transaction.
B)
receive the dual commissions without disclosure.
C)
not receive two commissions if the parties are not both represented.
D)
receive the commissions as long as this fact is disclosed in writing.

Answer 69

Explanation
The answer is receive the commissions as long as this fact is disclosed in writing. Representation is not the issue in receiving dual commissions; the important thing is written disclosure to both parties that dual commissions will be received.