[CE ] Continuing Education 4 hours Real Estate Quiz Course


42 Rules Of Code Of Ethics and Standards Ofr Practice oF The National Association of Realtors

I. Respect for the Public

1. Follow the “Golden Rule” – Do unto others as you would have them do unto you.
2. Respond promptly to inquiries and requests for information.
3. Schedule appointments and showings as far in advance as possible.
4. Call if you are delayed or must cancel an appointment or showing.
5. If a prospective buyer decides not to view an occupied home, promptly explain the situation to the listing broker or the occupant.
6. Communicate with all parties in a timely fashion.
7. When entering a property, ensure that unexpected situations, such as pets, are handled appropriately.
8. Leave your business card if not prohibited by local rules.
9. Never criticize property in the presence of the occupant.
10. Inform occupants that you are leaving after showings.
11. When showing an occupied home, always ring the doorbell or knock – and announce yourself loudly – before entering. Knock and announce yourself loudly before entering any closed room.
12. Present a professional appearance at all times; dress appropriately and drive a clean car.
13. If occupants are home during showings, ask their permission before using the telephone or bathroom.
14. Encourage the clients of other brokers to direct questions to their agent or representative.
15. Communicate clearly; don’t use jargon or slang that may not be readily understood.
16. Be aware of and respect cultural differences.
17. Show courtesy and respect to everyone.
18. Be aware of – and meet – all deadlines.
19. Promise only what you can deliver – and keep your promises.
20. Identify your REALTOR® and your professional status in contacts with the public.
21. Do not tell people what you think – tell them what you know.

II. Respect for Property

1. Be responsible for everyone you allow to enter listed property.
2. Never allow buyers to enter listed property unaccompanied.
3. When showing property, keep all members of the group together.
4. Never allow unaccompanied access to property without permission.
5. Enter property only with permission even if you have a lockbox key or combination.
6. When the occupant is absent, leave the property as you found it (lights, heating, cooling, drapes, etc). If you think something is amiss (e.g. vandalism) contact the listing broker immediately.
7. Be considerate of the seller’s property. Do not allow anyone to eat, drink, smoke, dispose of trash, use bathing or sleeping facilities, or bring pets. Leave the house as you found it unless instructed otherwise.
8. Use sidewalks; if weather is bad, take off shoes and boots inside property.

III. Respect for Peers

1. Identify your REALTOR and professional status in all contacts with other REALTORS.
2. Respond to other agents’ calls, faxes, and e-mails promptly and courteously.
3. Be aware that large electronic files with attachments or lengthy faxes may be a burden on recipients.
4. Notify the listing broker if there appears to be inaccurate information on the listing.
5. Share important information about a property, including the presence of pets; security systems; and whether sellers will be present during the showing.
6. Show courtesy, trust and respect to other real estate professionals.
7. Avoid the inappropriate use of endearments or other denigrating language.
8. Do not prospect at other REALTORS®’ open houses or similar events.
9. Return keys promptly.
10. Carefully replace keys in the lockbox after showings.
11. To be successful in the business, mutual respect is essential.
12. Real estate is a reputation business. What you do today may affect your reputation – and business – for years to come.

 

Continuing Education 4 hours Real Estate Quiz Course

1. The Code of Ethics is based on the concept of:
c. “Let the Public be served.” Correct!

2. REALTORS®:
d. A and B only. Correct!

3. When the Code of Ethics was adopted:
c. there were no real estate licensing laws. Correct!

4. The Code of Ethics was adopted to establish standards of conduct for the real estate industry.
a. True Correct!

5. The Golden Rule is quoted in the Code’s Preamble.
a. True Correct!

6. A listing broker should:
c. suggest a listing price based on comparable market data. Correct!

7. The Code of Ethics protects:
a. the buying and selling public. Correct!

8. The Code of Ethics has three major sections:
b. Duties to Clients and Customers¸ Duties to the Public¸ and Duties to REALTORS®. Correct!

9. Article 2 prohibits exaggeration, misrepresentation, or concealment of pertinent facts.
a. True Correct!

10. Who can file an ethics complaint against a REALTOR®?
c. Both A and B. Correct!

11. Arbitration hearings are often based on:
d. procuring cause disputes between REALTORS® associated with different firms. Correct!

12. The Code requires that REALTORS® respect:
d. exclusive relationships other REALTORS® have with their clients. Correct!

13. The Code prohibits:
a. exaggeration¸ misrepresentation and concealment of pertinent facts about the property or the transaction. Correct!

14. Licensees can generally rely on the statements of the seller (such as in a Seller Disclosure Statement) unless the licensee has reason to believe the information is not true.
a. True Correct!

15. When may a listing broker change her offer of compensation to a cooperating broker?
c. prior to the cooperating broker producing an offer to purchase. Correct!

16. REALTORS® must discover and disclose:
b. adverse factors reasonably apparent to someone with expertise in those areas required by their real estate licensing authority. Correct!

17. Disciplinary action in an ethics hearing can include:
c. a letter of reprimand. Correct!

18. Discipline in an ethics hearing may include:
a. more than one form of discipline. Correct!

19. The ethics enforcement process includes initial screening of complaints by the:
d. Grievance Committee. Correct!

20. If the Grievance Committee concludes potentially unethical conduct may have occurred,
b. they forward the complaint to the Professional Standards Committee for hearing. Correct!

21. Under the Code, a copy of an offer to purchase must be given to the buyer:
c. upon the buyer signing the offer. Correct!

22. The Code requires that REALTORS®’ advertising clearly identify:
a. the member’s professional status or status as a REALTOR®. Correct!

23. The Preamble to the Code:

:
a. can be the basis for disciplinary action against a REALTOR®.

24. Articles of the Code of Ethics are broad statements of ethical principles and the Standards of Practice support, interpret and amplify the respective Articles.
a. True Correct!

25. A “general” mailing to all homes in an area:
c. is unethical if there is a “for sale” sign on the lawn.

 

T          F**      1.         The Code of Ethics is based on the “caveat emptor” concept.

 

T          F**      2.         REALTORS have an obligation to protect and promote the interests of their clients regardless of the effect on any other party or REALTOR.

 

T**      F          3.         At the time the Code of Ethics was adopted, there were no real estate licensing laws.

 

T**      F          4.         The Code of Ethics was adopted to establish standards of conduct in the industry.

 

T**      F          5.         The Golden Rule is part of the Preamble of the Code of Ethics.

 

T**      F          6.         The concept of “ethics” generally includes some reference to standards, including legal standards and personal moral standards.

 

T**      F          7.         The Code of Ethics protects the buying and selling public.

 

T**      F          8.         The Code of Ethics is divided into three major sections, “Duties to Clients and Customers,” “Duties to the Public,” and “Duties to REALTORS.”

 

T          F**      9.         Under no circumstances may a REALTOR talk to, negotiate or discuss real estate matters with the client of another REALTOR.

 

T          F**      10.       Only members of the public may file a complaint against a REALTOR alleging a violation of the Code of Ethics.

 

T**      F          11.       Arbitration hearings are often based on a procuring cause dispute between REALTORS associated with different firms.

 

T**      F          12.       The Code requires that REALTORS respect the agency relationships that other REALTORS have with their clients.

 

T**      F          13.       The Code of Ethics prohibits exaggeration, misrepresentation and concealment of pertinent facts about the property or the transaction.

 

T**      F          14.       Generally, a licensee can rely on the statements given by the seller (such as in a Seller Disclosure Statement) unless the licensee has reason to believe that the information which the seller has given is not true.

 

T          F**      15.       The requirement to secure agreements in writing extends only to sale contracts and not to changes or amendments to the contract.

 

T**      F          16.       A listing licensee must be particularly careful not to say anything about the property or the price of the property which might harm the owner’s interests.

 

T**      F          17.       Disciplinary action in an ethics hearing can include a fine up to $15,000.

 

T          F**      18.       Discipline in an ethics case may not include more than one form of discipline.

 

T**      F          19.       The ethics enforcement process includes an initial screening by the Grievance Committee.

 

T          F**      20.       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.

 

T**      F          21.         If a buyer asks you about development on property near your listing, and you have no actual knowledge of surrounding development, you should offer to get specific information or direct the buyer to a reliable source of information.

 

T          F**      22.       The requirement for accuracy in written agreements extends only to sale contracts (offers to purchase) and not to listing agreements.

 

T**      F          23.       The Preamble to the Code of Ethics establishes ideals for which all REALTORS should strive.

 

T**      F          24.       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.

 

T          F**      25.       Advertising is not regulated by the Code of Ethics.

 

 

1. Which of these best captures the main idea of Article 16?
The answer is B – Respect agency and other exclusive relationships other REALTORS® have with their clients.
b. Respect agency and other exclusive relationships other REALTORS® have with their clients.

2. When is a “general” mailing an ethical practice?
The answer is A – At any time¸ so long as MLS or other similar data is not used to target properties currently listed.
a. At any time¸ so long as MLS or other similar data is not used to target properties currently listed.

3. When can a REALTOR® “solicit” another broker’s exclusive listing?
The answer is 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.
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.

4. When can a REALTOR® deal with the client of another REALTOR® who has an exclusive agreement with the client?
The answer is C – If the client initiates the dealings.
c. If the client initiates the dealings.

5. When must REALTORS® disclose their brokerage relationship?
The answer is D – All of the above.
d. All of the above.

 

Case study questions:
1. What Standard of Practice under Article 12 applies in this situation?

None. This is not an Article 12 problem.
Standard of Practice 12-6 (status as owner or REALTOR®).
Standard of Practice 12-5 (name of firms in ads).
Standard of Practice 12-1 (“free” products or services).
2. Is Jill and/or Sandy in violation of Article 12?

Yes… both are in violation because the name of the firm was not disclosed in the advertising.
Only Jill is in violation because it was her phone number.
Only Sandy is in violation because she is the broker and she had the listing.
Neither are in violation.
1. How can Article 12 best be summarized?
The answer is A – Be truthful in all communications¸ including advertising¸ marketing¸ and other representations.
a. Be truthful in all communications¸ including advertising¸ marketing¸ and other representations.

2. Who can claim to have “sold” property?
The answer is C – Anyone who participated in the transaction¸ whether as listing broker or cooperating broker.
c. Anyone who participated in the transaction¸ whether as listing broker or cooperating broker.

3. Can REALTORS® use the term “free” in their advertising?
The answer is B – Yes¸ as long as all terms governing the availability of the offered product are clearly disclosed at the same time.
b. Yes¸ as long as all terms governing the availability of the offered product are clearly disclosed at the same time.

4. The offering of premiums or inducements:
The answer is C – is not unethical as long as potential recipients have a clear understanding of all terms and conditions of the offer.
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:
The answer is B – the REALTOR® must disclose their interest as an owner or landlord¸ and as a REALTOR® or real estate licensee.
a. the REALTOR® must list the property with their firm.

 

1. Which of the following is the most accurate paraphrase of Article 9?
The answer is C – Get everything in writing.
c. Get everything in writing.

2. When must a REALTOR® give copies of an agreement to a party?
The answer is A – Upon their signing or initialing.
c. Within 24 hours of signing or initialing.

3. Once a contract for sale is executed by all parties, a REALTOR®:
The answer is C – must use reasonable care to ensure that the documents are kept current by written extensions and amendments.
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:
The answer is C – must be appropriately corrected¸ either by initialing or by using an amendment form¸ properly initialed or executed by all parties.
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?
The answer is D – all of the above.

1. The main idea of Article 2 is:
The answer is A – disclosure.
a. disclosure.

2. A REALTOR® has an obligation to:
The answer is B – avoid misrepresentation of pertinent facts about the property or the transaction.
b. avoid misrepresentation of pertinent facts about the property or the transaction.

3. Article 2 requires REALTORS® to:
The answer is C – discover and disclose adverse factors only within areas required by the real estate licensing authority.
c. discover and disclose adverse factors only within areas required by the real estate licensing authority.

4. “Pertinent facts” include:
The answer is B – physical defects in the property that the seller discussed with the listing broker.
b. physical defects in the property that the seller discussed with the listing broker.

5. Facts about surrounding properties:
The answer is B – should be disclosed if they affect the value or desirability of the property being sold.
b. should be disclosed if they affect the value or desirability of the property being sold.

Brian is a veteran in mortgage training and has 30 years of experience in training Loan Officers. He is a licensed mortgage broker and real estate agent.

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