Code Of Ethics (True/False)

The code of ethics is based on the "caveat emptor" concept

Realtors have an obligation to protect and promote the interests of their clients regardless of the effect on any other party or realtor.

At the time the code of ethics was adopted, there were no real estate licensing laws.

The code of ethics was adopted to establish standards of conduct in the industry.

The golden rules is part of the preamble of the code of ethics.

If a listing broker tells another broker "I'll cooperate with you," the other broker may assume that the listing broker will pay him/her a cooperative commission.

The code of ethics protects the buying and selling public.

The code of ethics is divided into three major sections: duties to clients and customers, duties to the public, and duties to Realtors.

Under no circumstances may a Realtor talk to, negotiate or discuss real estate matters with the client of another Realtor.

Only members of the public may file a complaint against a Realtor alleging a violation of the code of ethics.

Arbitration hearings are often based on a procuring cause dispute between Realtors associated with different firms.

The code requires that Realtors respect the agency relationships that other Realtors have with their clients.

The code of ethics prohibits exaggeration, misrepresentation and concealment of pertinent facts about the property or the transaction.

Generally, a licensee can rely on the statements given by the seller (such as in a seller disclosure statement) unless the licensee has a reason to believe that the information which the seller has given is not true.

A listing broker may unilaterally change the offer of compensation to a cooperating broker after an offer to purchase is produced.

The code of ethics requires that Realtors be competent in the discipline in which the Realtor engages.

Disciplinary action in an ethics hearing can include a fine up to $2,500.00.

Discipline in an ethics case may not include more than one form of discipline.

The ethics enforcement process includes an initial screening by the grievance committee.

If the grievance committee feels potentially unethical conduct may have occurred, they conduct a hearing to determine whether one or more articles of the code have been violated.

If Realtors undertake to provide services outside of their field of competence, they must fully disclose the facts to their client and/or engage the assistance of one who is competent.

If an owner who's property is currently exclusively listed with Realtor A initiates a discussion with Realtor B about listing the property after Realtor A's listing expires, Realtor B may not discuss listing that property with the owner until the listing expires.

The preamble to the code of ethics establishes ideals for which all Realtors should strive.

Articles of the code of ethics are the broadest statements of ethical principles, and standards of practice support, interpret and amplify the articles under which they are stated.

Cooperation with other brokers is mandated by the code of ethics unless cooperation is not in the best interests of the client.