Code Of Ethics

1. T1. The idea of "ethics" can mean: a. Morals or personal beliefs. b. Industry practices or standards. c. Religious beliefs. d. Philosophical beliefs. e. All of the above.he idea of "ethics" can mean: a. Morals or personal beliefs. b. Industry practices or standards. c. Religious beliefs. d. Philosophical beliefs. e. All of the above.

2. At the time the REALTOR® Code of Ethics was adopted: a. the real estate industry was well organized and noted for its professionalism. b. there were no real estate licensing laws. c. "Let the public be served" was the motto of the real estate industry.

3. When real estate licensing laws were established, state legislatures: a. required real estate practitioners to be peddlers. b. looked to the Code of Ethics as a source of standards for of the real estate industry. c. used the medical profession's licensing code as the pattern for the real estate industry. d. had attorneys draft all new rules for the real estate industry.

4. The Code of Ethics: a. was adopted to establish standards of conduct for the industry. b. was based on the concept of "the public be damned". c. was adopted in 1931. d. was adopted long after real estate licensing laws were in existence.

5. "Alternative Dispute Resolution": a. means going to federal courts rather than state courts. b. does not include the use of arbitration or mediation. c. has been mandated since the Code of Ethics was adopted (in the form of arbitration). d. none of the above

1. The Preamble to the Code of Ethics is an aspirational introduction to the Code which sets ideals that REALTORS® strive to meet. a. True b. False

2. The phrase "Under all is the land": a. is the first sentence in the Preamble. b. indicates the all-encompassing nature of the real estate business. c. embodies the idea that land is the foundation of food and shelter and sophisticated aspects of economy and prosperity. d. all of the above.

3. The Preamble: a. can be used as a basis to discipline of REALTOR®. b. is based solely on the idea of protecting REALTORS®. c. cannot be used to discipline a REALTOR®. d. is the same as an Article of the Code.

4. The three major categories of the Code are (mark the three correct ones): Duties to REALTORS® Duties of Disclosure Duties to Buyers Duties to Clients and Customers Duties to Sellers Duties of Agency Duties to the Public Duties of Honesty

5. Articles of the Code are: a. cited when a REALTOR® is alleged to have violated the Code. b. broad statements of ethical principles. c. supported¸ interpreted and amplified by Standards of Practice. d. all of the above.

A member can be sanctioned for violating the Pathways to Professionalism. A True B False

Who can file an ethics complaint? Only members of the public. Only REALTOR® members of the Association in which the REALTOR® charged holds membership. REALTORS® members of any Association but not members of the public. Anyone - whether a member of the public or a REALTOR®.

1. The Code of Ethics is enforced primarily by: a. the National Association of REALTORS®. b. the local circuit courts. c. the small claims courts. d. the local Association of REALTORS®.

2. The two types of complaints typically resolved by local Associations are (check two): Arbitration Claims Criminal Complaints Money Caims for Damages Traffic Tickets Ethics Complaints

3. The two committees which receive, review and resolve ethics complaints are (check two): The Membership Committee The Grievance Committee The Executive Committee The Professional Standards Committee The Board of Directors

4. The Grievance Committee's role is to: a. hold hearings and determine whether there was a violation of the Code. b. have a preliminary meeting to determine whether there was a possible violation of the Code. c. impose discipline. d. enforce disciplinary action which the hearing panel imposed

5. The function of the Professional Standards Committee is to: a. make members attend Association meetings. b. determine whether¸ after a due process hearing¸ the respondents were in violation of the Code by clear¸ strong and convincing evidence. c. serve as an initial screening panel for ethics complaints. d. send possible violations of the Code to the Board of Directors for a due process hearing to determine the discipline to be imposed.

6. A "due process" hearing includes which of the following (check all that apply): the right to present evidence¸ testimony and witnesses. the right to legal counsel. the right to unlimited postponements. the right to speak with the hearing panel in private. the right to cross-examine the complainant and complainant's witnesses. the right to an impartial peer panel.

7. If a REALTOR® is found in violation of the Code, which of the following types of discipline may be imposed (check all that apply): Letter of Reprimand Fine not to exceed $250 Fine not to exceed $15¸000 Community service not to exceed 50 hours Suspension of MLS privileges Education Attendance at Association meetings Letter of Warning

Have you ever heard the term "mediation?" What do you think it means? A process by which the Board president tells disputing members what a hearing panel will likely decide. A voluntary process in which a trained neutral party (called a mediator) assists disputing parties to come to a mutually acceptable resolution of their dispute. A mandatory process in which a mediator gives the parties a suggested solution to the dispute.

1. A request for arbitration is initially reviewed by: a. the arbitration hearing panel. b. the professional standards committee. c. the grievance committee. d. the Association's executive officer.

2. REALTORS® are required to arbitrate: a. all disputes. b. all disputes with other REALTORS®. c. disputes with REALTORS® associated with different firms. d. those disputes specified by Article 17 of the Code of Ethics.

3. Mediation is: a. a process that can be required at local discretion in which a trained mediator assists the parties in coming to a mutually acceptable resolution of their dispute. b. a voluntary process in which the parties agreement of settlement is non-binding. c. a mandatory process where the parties must settle the dispute. d. a mandatory process in which the parties must attend a settlement hearing before an arbitration hearing panel.

4. An arbitration panel will decide a dispute: a. based on procuring cause. b. based on which REALTOR® showed the property first. c. based on which REALTOR® wrote the successful offer to purchase. d. based on which REALTOR® had a buyer agency agreement.

5. The concept of procuring cause: a. is based on a legal concept used by the courts for many years. b. considers the entire course of events in a transaction. c. does not have any predetermined rules of entitlement. d. might be stated as "the cause originating a series of events which, without break in their continuity, result in the accomplishment of the prime object. e. all of the above.

1. When entering into a listing agreement, REALTORS® must advise sellers/landlords of: a. any potential to act as a disclosed dual agent. b. the commission rates of all other brokers. c. the price for which the property will sell. d. their educational background and any degrees that they hold.

2. Article 1 requires REALTORS® to: a. put the client's interests after their own. b. protect and promote the client's interests. c. be honest only with the client. d. keep the client's interests primary and disregard any other obligations.

3. Article 1 requires REALTORS® to treat all parties: a. fairly and honestly. b. fairly. c. honestly. d. with respect and courtesy.

4. REALTORS® must submit offers: a. within a reasonable time. b. as quickly as possible. c. as required by their office policy. d. no later than 24 hours after receipt.

5. The duty of confidentiality: a. does not apply if the client consents to disclosure. b. continues after the termination of the agency relationship. c. does not apply if a court order requires the REALTOR® to disclose information. d. all of the above.

1. The main idea of Article 2 is: a. disclosure. b. discovery. c. concealment. d. technical expertise.

2. A REALTOR® has an obligation to: a. disclose facts only about listed property. b. avoid misrepresentation of pertinent facts about the property or the transaction. c. have expertise in every field related to building construction.

3. Article 2 requires REALTORS® to: a. conduct a complete and thorough inspection of the property¸ including electrical¸ plumbing¸ roofs and other systems. b. discover and disclose latent material defects. c. discover and disclose adverse factors only within areas required by the real estate licensing authority. d. have technical expertise in disciplines outside of the real estate profession.

4. "Pertinent facts" include: a. facts about sellers that buyers might use to their advantage in negotiations. b. physical defects in the property that the seller discussed with the listing broker. c. community matters that do not affect the property being sold. d. any fact about the transaction.

5. Facts about surrounding properties: a. are never pertinent because they don't relate to the property being sold. b. should be disclosed if they affect the value or desirability of the property being sold. c. should be disclosed only if required by state law. d. none of the above.

1. Which of the following is the most accurate paraphrase of Article 9? a. Contracts for sale must be in writing. b. Agency agreements must be in writing. c. Get everything in writing. d. Oral agreements are not acceptable.

2. When must a REALTOR® give copies of an agreement to a party? a. Upon their signing or initialing. b. Only upon signing. c. Within 24 hours of signing or initialing. d. Within a reasonable time of signing or initialing.

3. Once a contract for sale is executed by all parties, a REALTOR®: a. has no further obligation to put documents in writing. b. has no responsibility for written documents which are assumed by the broker. c. must use reasonable care to ensure that the documents are kept current by written extensions and amendments.

4. Minor typographical errors, such as a transposed number in an address: a. can be changed by the REALTOR®. b. are unimportant and need not be corrected. c. must be appropriately corrected¸ either by initialing or by using an amendment form¸ properly initialed or executed by all parties.

5. Which of the following documents are covered by Article 9? a. contracts for sale. b. listing agreements. c. leases. d. all of the above.

1. How can Article 12 best be summarized? a. Be truthful in all communications¸ including advertising¸ marketing¸ and other representations. b. Only brokers may advertise. c. Rely on publishers-like newspapers to ensure that your advertising is accurate. d. Endeavor to make your advertising as plausible as possible.

2. Who can claim to have "sold" property? a. Only listing brokers. b. Only listing brokers may use the word "sold¸" but cooperating brokers may use words like "participated" or "assisted" to describe their role. c. Anyone who participated in the transaction¸ whether as listing broker or cooperating broker. d. Only cooperating brokers.

3. Can REALTORS® use the term "free" in their advertising? a. Yes¸ under all circumstances. b. Yes¸ as long as all terms governing the availability of the offered product are clearly disclosed at the same time. c. Yes¸ if the service or product is available for a nominal cost.

4. The offering of premiums or inducements: a. is always unethical. b. is never unethical. c. is not unethical as long as potential recipients have a clear understanding of all terms and conditions of the offer.

5. When advertising unlisted property in which a REALTOR® has an ownership interest: a. the REALTOR® must list the property with their firm. b. the REALTOR® must disclose their interest as an owner or landlord¸ and as a REALTOR® or real estate licensee. c. the REALTOR® has no specific advertising obligations. d. the REALTOR® is bound only by state law and not by the Code.

1. Which of these best captures the main idea of Article 16? a. Solicitation of listings and buyer agency agreements is prohibited in all cases. b. Respect agency and other exclusive relationships other REALTORS® have with their clients. c. The Code addresses interference with agency relationships only. d. You may not interfere with any relationship another REALTOR® has with a member of the public.

2. When is a "general" mailing an ethical practice? a. At any time¸ so long as MLS or other similar data is not used to target properties currently listed. b. At any time. c. Never. d. With the client's consent.

3. When can a REALTOR® "solicit" another broker's exclusive listing? a. Never. b. At any time - anti-trust laws prohibit restrictions on such activities. c. If the owner initiates the contact and the REALTOR® has not directly or indirectly initiated the discussion¸ the REALTOR® can discuss the terms of a future listing. d. If the owner does not initiate the contact but the REALTOR® initiates a discussion at a social event¸ the REALTOR® can discuss the terms of a future listing.

4. When can a REALTOR® deal with the client of another REALTOR® who has an exclusive agreement with the client? a. Never. b. At any time - there are no restrictions on this activity. c. If the client initiates the dealings. d. If the client returns a call after the REALTOR® has initiated the dealings.

5. When must REALTORS® disclose their brokerage relationship? a. Upon first contact¸ to sellers of unlisted property¸ if the REALTOR® is acting as the buyer's agent. b. Upon first contact¸ to sellers' agents or brokers¸ if the REALTOR® is acting as the buyer's agent. c. As soon as practicable¸ to unrepresented buyers¸ if the REALTOR® is acting as the seller's agent. d. All of the above.