Karen has another deal with her least-favorite agent, Niles. Whenever she has worked with him, he’s been condescending and abrasive. What should Karen do?
Be equally condescending and abrasive when she interacts with Niles.
Be polite and professional when she interacts with Niles.
Refer her client to someone else so she can avoid working with Niles again.
Report Niles to the commission.
What does the MAAP method help licensees determine?
What their gross commission will be
When to report another licensee for an ethics violation
Whether a fair housing violation has occurred
Which property facts they need to disclose
New salesperson Nicole notices that several non-REALTOR® licensees at her firm include the REALTOR® designation on their business cards and websites, so she decides to do the same. She’s planning to join soon anyway. Did she do anything wrong?
No; as long as her broker is a REALTOR®, Nicole can use the designation.
No; Nicole’s going to join NAR, so she can include the designation.
Yes; she may only use the designation if everyone else in her firm belongs to NAR.
Yes; she must actually have the designation in order to use it.
Licensee Sandra just accepted an offer on behalf of her seller client, Ben. When Sandra meets Ben at his home, she sees evidence on the kitchen ceiling that the previous day’s rainstorm caused a pretty major roof leak. Ben tells Sandra that he’ll have it fixed within the week and not to mention anything to the prospective buyers. What must Sandra do?
Adhere to her fiduciary duty of obedience and obey Ben’s instructions.
Only disclose the roof damage if it isn’t repaired before there’s a signed contract.
Pretend she didn’t hear her buyer say anything about the roof; it’ll be fixed in a week anyway.
The roof damage is a material fact; she must disclose the roof damage to the buyers, even if the damage is fixed before the contract is signed.
REALTOR® Kay approached seller Patrick and asked him if he were working with any other agents. Patrick said he had an agreement with ABC Realty, but it had expired. Which of the following is true?
Kay can enter into a listing agreement with Patrick since the prior agreement has expired.
Kay can’t enter into a listing agreement since there was a prior agreement on the property.
Kay must receive the former listing agent’s consent before signing a new agreement with Patrick.
Kay should do some background work to determine why Patrick’s property didn’t sell so she doesn’t get in over her head.
Trevor had been a real estate investor for 15 years but only recently got his real estate license. He’s having trouble establishing a relational connections with his first-time buyer client. He asks fellow firm member and REALTOR® Marquis for advice. What should Marquis do?
Encourage Trevor to power through; mistakes are the best way to learn.
Help Trevor in exchange for a portion of Trevor’s commission.
Share his expertise to help Trevor determine the best approach for working with this client.
Tell Trevor to go to the principal broker for advice.
The NAR Code of Ethics prohibits REALTORS® from interfering with another licensee’s ______.
Commission split with his brokerage firm
Compensation agreement
Exclusive brokerage relationship with a consumer
Marketing plan
Malcolm is a new agent, and he’s been struggling. This week, he missed his third showing. You’re concerned that his flubs are going to tarnish your brokerage’s reputation. What should you do?
Ask your broker to transfer Malcolm’s clients to you until his performance improves.
Pull Malcolm aside and offer to help him.
Report Malcolm to your broker, and if your broker doesn’t take action, report him to the real estate commission.
Tell the other agents in your firm to not let their clients interact with Malcolm.
REALTOR® Tim forwarded a text he received that mocked another agent’s sales record, not realizing that the numbers were wrong and the agent was actually very successful. Tim may be guilty of an ethical violation per NAR because ______.
He didn’t alert the agent about the text
He didn’t research the agent’s stats before forwarding the text
He passed along misleading information about another licensee
Texting isn’t an accepted form of real estate communication
Misty is sending postcards to her contact list and includes an old lead, Hank, who is currently working with Judy, another licensee. Misty has no knowledge of Hank and Judy’s relationship. Which of the following options is true?
Licensees may not send postcards to anyone who isn’t a past client.
Misty is allowed to make general mailings as long as she’s unaware of Hank’s relationship with Judy.
Misty isn’t allowed to send any mailings unless a consumer specifically requested them.
Misty is required to screen the contacts on her mailing list to ensure they aren’t currently working with another agent.
REALTOR® Mike’s high school buddy Trent recently became licensed. Trent has a history of drinking too much at parties that Mike’s attended in the past, though Trent recently told Mike that he quit drinking. Regardless, Mike warns his colleagues to be careful if they end up working with Trent. Mike has likely ______.
Ensured that his firm’s clients are safe
Prevented his colleagues from having to work with a questionable licensee
Provided Trent with the motivation he’ll need to stay sober
Violated the Code of Ethics
You might be crossing an ethical line if you report that ______.
A broker targets advertising to avoid low-income or minority areas
A broker was arrested for drunk driving
A colleague broke her client’s confidence in order to secure an in-house deal with another firm licensee
A colleague routinely deposits earnest money deposits into her personal account so she can collect interest on them
Jean, a REALTOR®, is preparing ad copy for her latest real estate listing. Which of the following is one reason she needs to be careful when creating her ad?
Her NAR membership may be revoked if she posts more than three erroneous ads.
It should be written in a way that discourages window shoppers.
Most laypersons don’t know what’s required in advertising, so they can be easily misled.
The NAR Marketing Standards Committee routinely checks members’ ads for compliance.
Sarah’s client Reggie saw his listing on her website and told her that he was concerned that his property’s square footage appeared too small compared to other properties in the area. He asked Sarah to change the information on her website to add 500 square feet. What should Sarah do?
Change the square footage on her website as Reggie requested, because her duty of obedience requires that she follow his requests and instructions.
Inform Reggie that as a real estate professional, she must avoid misrepresentation relating to the property or the transaction.
Remove the images of the property from her website.
Remove the property from her website.
The Code of Ethics prohibits REALTORS® from knowingly or recklessly making ______ other real estate professionals.
Compensation deals with
False or misleading statements about
Fun of
Joint advertising with
REALTOR® Sheena has a lot of fixer-upper listings, so she paid a photographer to edit the photos on her website in such a way that shows their “potential.” In one, she had the photographer edit out the decaying back steps, since they were an eyesore. According to the NAR Code of Ethics, is this acceptable?
No; REALTORS® must edit their own photos.
No; the altered photos do not present a true picture of the properties.
Yes, but only if she includes the actual photos as well.
Yes, but only if the MLS listing discloses that the photos were altered.
Carly’s latest ad features listings by other agents. She didn’t get consent from the other agents to use their listings, because she figured it didn’t really matter. Carly’s ads could be considered ______.
Covert marketing
Cross promotion
False advertising
Free publicity for other agents
REALTORS® must be honest and truthful in their real estate communications and present a(n) ______ in their ads and marketing.
Appreciable effort
At least one property photo
The commission rate
True picture
You’re dropping your child off at school when you meet Jane, a prospective seller client, for the first time. Which of the following questions should you ask in order to meet your ethical obligations regarding representation?
“Are you already working with another broker? Have you signed a representation agreement?”
“Do you have any current offers?”
“Do you want to list your house with me?”
“Is your house currently on the market?”
Which acronym is used to describe a method for determining if a fact is material and in need of disclosure?
MAAP
MAD
MADE
MAX
REALTOR® Pete gets a call from REALTOR® Sue. Sue wants to know if Pete has an exclusive listing on a certain property. Pete refuses to answer any of Sue’s questions. As a result, ______.
Pete can rest assured that he acted in the client’s best interest
Pete has successfully protected his exclusive listing
Sue can contact the property owner directly
Sue will never be able to find out if Pete has an exclusive listing on the property
As a licensed real estate professional, it’s your duty to ______.
Advise the public regarding other agents’ sales records
Enhance your brokerage’s image by speaking poorly about other brokerages whenever possible
Maintain your professionalism by avoiding gossip and defaming other licensees
Warn friends and family against using any agent other than someone at your firm
Sarah just earned a new accreditation and is updating her advertising, website, and other outlets to include the credentials. To beef up her website, she also adds the credential she’s currently working on. Has she committed any ethical violations?
No; it’s acceptable to advertise an in-process accreditation.
No; websites are exempt from advertising guidelines.
Yes; all advertising media, such as her website, must accurately reflect her credentials.
Yes; she should also add the in-process credential to her business cards and advertising.
Sophia received an email about an agent in another firm making fun of the agent’s sales and client dissatisfaction. It gave Sophia a giggle, so she forwarded it to a few agents in her firm. Has Sophia committed any ethical violations?
No; Sophia isn’t in violation since she didn’t write the email, she just forwarded it.
Yes, but only if the other agent is a member of a protected class.
Yes, but only if the other agent is a REALTOR®.
Yes; Sophia is responsible because she forwarded the email, even though she didn’t write it.
Hoping to get some listings, REALTOR® Tony sent out “sold” postcards for properties in the geographic areas he liked to serve, even though he hadn’t sold those properties himself. The postcard included his contact information, his brokerage’s name, and the REALTOR® logo. Has Tony committed any ethical violations?
No; he included all required brokerage identifying information.
No; REALTORS® may promote each others’ sales.
Yes; the postcard leads consumers to believe that Tony had something to do with the featured sales.
Yes; Tony didn’t need the brokerage information on the postcard, since the sales were made by other brokers.
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Marge is a real estate agent, but she isn’t a REALTOR®. This means that she ______.
Cannot engage in transactions involving REALTORS® unless she agrees to adhere to the code
Is not subject to the code
Is still subject to the code, because she is a licensed agent
Is subject to the code only when she is working with other REALTORS®
When a local board of REALTORS® requires that disputes go to mediation first rather than to arbitration, what does this mean for the REALTORS® associated with that board?
The mediation will be overseen by the national board.
They can appeal mediation decisions to the national board.
They can petition the national board if they’d like to arbitrate instead.
They’re obligated to abide by the requirement.
Which of the following statements is true about the mediation process?
Mediation can take much longer than arbitration.
Mediation is less costly than arbitration.
Mediation takes place in a courtroom.
The mediator makes the final decision.
Lisa, a buyer, filed a complaint against REALTOR® Sam. Lisa requested arbitration. Must Sam comply?
No; non-members don’t get to dictate what form of resolution takes place.
No; the circumstances of the complaint determine which resolution method is used.
Yes, as long as Lisa agrees to be bound by the panel’s decision.
Yes; but Lisa may appeal if she does not agree with the panel’s decision.
Which of these is a benefit of mediation?
A mediator’s decision is final, so mediation is a great way to solve a problem quickly.
Arbitration can be contentious and end professional relationships, whereas mediation can clear up misunderstandings and preserve working relationships.
Arbitration is often rushed, whereas in a mediation setting, the parties have more time to say their piece.
Mediation gives the board the power to levy fines on a licensee.
Panel member Dick recommended a potential disciplinary action that only state licensing authorities are permitted to hand down when a REALTOR® violates the Code of Ethics. What’s the penalty he recommended?
Additional education
Formal reprimand
License suspension or termination
Membership suspension or termination
Ethics complaints must typically be filed with the local board or REALTORS® association within ______ days.
180
250
30
45
Disgruntled seller Tiffany wants to file an ethics complaint against her real estate agent, Mark. Mark is not a member of NAR. To which entity may Tiffany file a complaint?
Both the local licensing entity and the local REALTOR® board
Either the local licensing entity or the local REALTOR® board
Only the local licensing entity
Only the local REALTOR® board
REALTOR® Janice wants to research how the NAR enforces the Code of Ethics. Which article of the code should she look to?
Article 10
Article 12
Article 15
Article 17
______ is one of the most effective tools a REALTOR® board can use in mending relationships and clearing up communication issues.
A hearing
Constructive counseling
Mandatory arbitration
Mediation
If neither REALTOR® in a dispute wishes to mediate, what does the NAR Code of Ethics dictate happens next?
They can immediately start arbitration.
They may decline mediation.
They must get approval from the state board.
They’re still required to try mediation.
Today, Mary Anne learned that 60 days ago, a fellow REALTOR® misrepresented himself in some advertising. How many days does she have left to file an ethics complaint? She just saw the advertisement today.
100
180
30
60
Arbitration is ______ all parties.
Binding on
Mandatory for
Optional for
Unavailable for
REALTOR® Jackie is involved in an arbitration dispute with another licensee. As long as the respondent agrees, Jackie’s confident that they’ll be able to mediate the matter. How is Jackie so sure?
All local boards must offer mediation in otherwise arbitrable matters.
Complainants decide which resolution method is used.
Complaints are usually settled in a court of law.
The grounds of the complaint are not arbitrable.
Harvey is a respondent in an ethics complaint. Which of the following statements about this situation is true?
As the respondent, he’s considered a hostile witness.
He’ll be automatically suspended pending the outcome of the case.
He’s considered innocent until proven “in violation.”
He’s considered “in violation” until proven innocent.
Felicity’s referral deal from out of state fell through, and the out-of-state broker filed an ethics complaint about her. What do we know is true about this situation?
The ethics hearing must take place in Felicity’s district since she’s the respondent.
The ethics hearing must take place in the other REALTOR®’s district, since he filed the complaint.
They must arbitrate if the out-of-state broker agrees to travel to Felicity’s board and abide by the panel’s decision.
They must arbitrate the manner through video conferencing.
Which of the following statements is true regarding ethics complaints?
All licensed real estate professionals are subject to the Code of Ethics.
If it finds an ethical breach has occurred, NAR can strip you of your real estate license.
The board determines if laws have been broken.
You should try open communication as a first step in conflict resolution.
Lily is getting ready for an ethics hearing. She should be prepared to ______.
Give a concise presentation
Give a long and detailed presentation
Give background, including office gossip
Provide opinion and conjecture
Which of these REALTORS® is likely in violation of Article 17 of the NAR Code of Ethics?
Gavin files a lawsuit and refuses to withdraw it in order to arbitrate the matter.
Kenneth abides by the board’s decision that his complaint should go through mediation first.
Stacey and the other party to the complaint tell the board in writing that they don’t want to mediate.
Tiffany complies with a consumer’s request to arbitrate the consumer’s complaint against her.
Rodrigo filed an ethics complaint with his local board of REALTORS®. He cited the two articles that he believes the REALTOR® violated. What other mandatory information must he include?
A description of the circumstances surrounding the complaint
A description of the steps he took to either avoid or mitigate the violation
His attorney’s contact information
The dates Rodrigo is available to come into the board for an interview regarding his complaint
Cara is involved in a dispute with another REALTOR®, Sue. Cara prefers ______ because she wants to preserve her working relationship with Sue.
Arbitration
Litigation
Mediation
Negotiation
REALTOR® Cheryl submitted a request for arbitration in a dispute with REALTOR® Stan. The circumstances surrounding the complaint call for voluntary arbitration. Which party has the right to decline arbitration?
Cheryl
Either Cheryl or Stan
Neither Cheryl nor Stan, but the panel can decline arbitration in favor of mediation
Stan
Paulo includes ______ in his sales contracts so that the parties have an avenue for dispute resolution if the deal goes sour.
A mandatory arbitration agreement
An escape clause
Contact information for the local REALTOR® board
Instructions for dispute resolution
______ is the NAR’s preferred method of dispute resolution.
A commission hearing
A criminal trial
Arbitration
Mediation
Kesha is filing an ethics complaint against Marco. She should be sure to ______.
Contact the state board prior to filing
File the complaint within 14 days of the incident
Get a lawyer first
Specify the article she believes Marco violated
Following an arbitration with another REALTOR®, Simone learned that the panel hadn’t followed the proper arbitration procedure. Can Simone appeal?
No; only the other party (the complainant) can appeal the decision.
No; the decision made at an arbitration is binding on all parties.
Yes; arbitration can be appealed if a procedural error occurred.
Yes; but only if she faces license revocation.