The NAR Code of Ethics preamble states that REALTORS® should know about proposed and existing laws, public policies, government relations, and ______.
Competitors’ practices
Current market conditions
Current technologies
Other REALTORS®’ recent violations
REALTOR® Dana is involved in a dispute with another licensee. As long as the respondent agrees to the method, Dana’s confident that they’ll be able to use mediation in the matter. How is Dana so sure?
All local boards must offer mediation in otherwise arbitrable matters.
Complainants decide which resolution method is used.
Complaints always default to mediation first.
The grounds of the complaint aren’t arbitrable.
In which of the following scenarios is the licensee abiding by the Code of Ethics?
Even though Sam and Lisa have squabbled before, Sam presents her client’s offer to his seller client and says nothing about his relationship with Lisa.
Jake knows that Phoebe is a difficult agent to work with, so he cautions his seller client to not take her buyer client’s offer.
LaTonya only presents the seller with offers that come from agents within her own firm.
Tina refuses to cooperate with Ross because he sent her a lowball offer once.
If neither party to an ethics complaint wishes to mediate, what does the NAR Code of Ethics dictate happens next?
The parties are still required to try mediation.
The parties can drop the complaint.
The parties may decline mediation.
The parties must get approval from the state board.
A licensee is working with four rather difficult clients but wants to see it through unless it’s absolutely necessary to part ways. To which of these clients should the licensee likely say goodbye?
A buyer whose deal was extended twice because they forgot about contract deadlines
An investor who always asks to undercut the listing price by 20%
An investor who will only buy from sellers of a specific race
A seller who has changed their mind about the sales price multiple times
REALTOR® Sharlene found out that one of her friends, Nick, became a licensee. Sharlene heard that Nick and his wife are going through a nasty divorce, and Nick has been drinking a lot. She told her firm colleagues to be careful if they end up working with him. Sharlene has likely ______.
Made sure that no one in her firm will work with Nick
Protected her colleagues from working with a questionable licensee
Provided Nick with an opportunity to prove himself as responsible
Violated the Code of Ethics
Which of the following statements about ethics complaints is true?
All licensed real estate professionals are subject to the Code of Ethics.
NAR can advise your licensing authority to strip you of your real estate license.
The hearing panel determines which, if any, laws have been broken.
You should try open communication as a first step in conflict resolution.
REALTOR® Stanley gets a call from REALTOR® Phyllis. Phyllis wants to know if Stanley has an exclusive listing on a certain property, but he won’t answer any of her questions. As a result, ______.
Phyllis can contact the property owner directly
Phyllis will never be able to find out if Stanley has an exclusive listing on the property
Stanley can rest assured that he acted in the client’s best interest
Stanley has successfully protected his exclusive listing
Licensee Rhiannon has actual knowledge of all of the following property issues. Which should she disclose to prospective buyers?
The nearby school system is one of the best in the area.
The neighbors are in a punk band that practices in the garage.
The sellers’ children carved their initials into the oak tree in the backyard.
The shower in the upstairs bathroom doesn’t work.
Rick knows that Andy, a new agent at the firm, is having a hard time managing his clients and transactions. Andy has mentioned to Rick his struggles to “keep all the balls in the air” when they’ve both been in the office, and a couple of other associates have noticed that Andy seems stressed and agitated. Which of the following do you think would be a good step for Rick to take in this situation?
Convince Andy to give his clients to Rick.
Let Andy sink or swim on his own.
Offer to help Andy.
Tell their principal broker to fire Andy.
Which of the following statements about mediation is true?
Mediation is less costly than arbitration.
Mediation takes place in a public place to ensure that the discussion doesn’t get too heated.
Mediation usually takes twice as long as arbitration.
The mediator makes the final decision.
Marje filed a business complaint against Homer. The grounds of the complaint call for voluntary arbitration. Which party has the right to decline arbitration?
Either Marje or Homer
Homer
Marje
Neither Marje nor Homer, but the panel can decline arbitration in favor of mediation
Bobbie is the respondent in a dispute with another REALTOR®. The parties agreed to arbitration instead of mediation. His broker offers some words of wisdom to try to calm Bobbie down before arbitration. What does his broker tell him?
Arbitration is quicker and less costly than mediation.
He can always appeal the decision if it doesn’t go his way.
Since arbitration is designed to sever incompatible relationships, he’ll never have to work with the other party again.
The panel’s decision is final, so he’ll be able to put this all behind him as soon as the hearing’s over.
Pam is sending postcards to her contact list. Her former client, Zeke, is included in the list but is currently working with Angela, another licensee. Pam has no knowledge of their relationship. Which is true?
Pam didn’t need to send Zeke a postcard since he already knows about her.
Pam is allowed to include Zeke in general mailings because she’s unaware of Zeke’s relationship with Angela.
Pam isn’t allowed to send any mailings unless a consumer specifically requested them.
Pam should have screened the contacts on her mailing list to ensure they weren’t currently working with another agent.
Angelika was the respondent in an arbitration, and the panel decided in favor of the complainant. A day after the arbitration hearing, Angelika realized that the panel had skipped over part of the normal procedure. Can she appeal?
No; arbitration is binding on all parties.
No; only complainants can appeal an arbitration decision.
Yes; anyone can appeal an arbitration decision.
Yes; arbitration can be appealed if there was a procedural error.
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Real estate licensee Kimmy is involved in a dispute with another licensee, Titus. Kimmy prefers to use ______ to resolve the issue, because she wants to preserve her working relationship with Titus.
Arbitration
Interpleading
Litigation
Mediation
The Code of Ethics is a great tool for ethical practice because, while it isn’t technically law, it’s designed to ______.
Align with the law
Be more lenient than the law
Be stricter than the law
Inspire the law
You meet a prospective seller client at the grocery store. In order to remain ethical when it comes to representation, which of the following questions should you ask her?
“Are you currently working with another real estate agent or broker and have you signed a representation agreement?”
“Did you know that my firm charges a lower commission rate than anyone else in town?
“Do your neighbors know you want to sell?”
“Is your house currently on the market?”
One of Saoirse’s frequent investor clients would like to see a property that’s listed with Saoirse’s firm. Saoirse has a scheduling conflict and can’t show the property on the day the investor’s available. What’s the acceptable method she should use to show the property?
Ask another agent to show the investor the property.
Give the investor the lockbox code; Saoirse knows he’s trustworthy.
Schedule a showing for another time.
Show the property per the guidelines the seller agrees upon.
REALTOR® Dana is involved in a dispute with another licensee. As long as the respondent agrees to the method, Dana’s confident that they’ll be able to use mediation in the matter. How is Dana so sure?
All local boards must offer mediation in otherwise arbitrable matters.
Complainants decide which resolution method is used.
Complaints always default to mediation first.
The grounds of the complaint aren’t arbitrable.
Which of the following should REALTORS® remember about cooperating with other brokers?
Cooperation is rarely good for business.
They can never withhold cooperation.
They can withhold cooperation when it’s in their client’s best interest to do so.
They only have to cooperate with other REALTORS®.
Last week, one of Roz’s clients, Lowell, saw his listing on her website and told her that he didn’t like that you could see the power lines behind the house. He asked Roz to airbrush the power lines out of the photo. What should Roz do?
Cancel her listing with Lowell.
Change the photo as Lowell requested, because her duty of obedience requires that she follow his requests and instructions.
Inform Lowell that, as a real estate professional, she must avoid misrepresentation relating to the property or the transaction.
Remove the images of the property from the listing.
Courtney is filing an ethics complaint against Matthew. She must make sure to ______.
Contact NAR before filing the complaint
File the complaint with 14 days of the incident
Hire an attorney to submit the complaint for her
Specify the article she believes Matthew violated
Which of the following statements is true regarding ethics hearings?
Complainants are not permitted to call witnesses.
Continuances (or delaying the hearing) are considered a privilege, not a right.
Respondents are considered guilty until proven innocent.
Respondents bear the burden of proving their innocence.
REALTOR® Peri submitted her client’s offer to a listing broker yesterday, and the broker called this morning to say that the offer was accepted. What can Peri safely assume about her commission?
She can discuss it with the broker.
The buyer will pay it.
The listing broker will split his commission with her.
The seller will pay it.
Trinity is updating her website, business cards, and advertising to include her recently earned credentials. Her website looks a little bare, so she also adds the credential she’s currently working on. Has she committed any ethical violations?
No; since she’s working on the accreditation, it’s acceptable to include the information on her website.
No; websites aren’t included in the items that must present a true representation of the licensee.
Yes; all of her materials need to be consistent, so she needs to add the in-process credential to her business cards and advertising.
Yes; all sources of information, such as her website, must accurately reflect her current credentials.
Phil is a new REALTOR®. He was excited to join NAR and abide by the Code of Ethics because ______.
Only 25% of real estate licensees are NAR members, and he wants to increase the association’s membership
Real estate agents are among the least trusted professionals in the U.S., and he wants to change that perception
REALTORS® may claim special legal exemptions
Without a Code of Ethics to abide by, he’ll make terrible decisions
Regarding the NAR Code of Ethics, it’s true that ______.
Every real estate licensee must abide by the Code of Ethics
REALTORS® must comply with the Code of Ethics as a basis of membership
The Code of Ethics has not been revised or changed since its inception
The Code of Ethics is updated every two years
Licensee China is visiting her seller client, Ralph, at his home. She notices the smell of fresh paint and sees that the kitchen ceiling has been recently painted. She asks Ralph about it, and he tells her that there’s a water stain due to a leaky pipe in the upstairs bathroom. What must China do?
Disclose the leak as a material fact to the buyers.
Disclose the leak to the buyers if it isn’t repaired before execution of the sales contract.
Refrain from disclosing the ceiling damage to the buyers.
Refute any actual knowledge of the leak so that disclosure is not necessary.
If you report that ______, you might be crossing an ethical line.
A broker is cheating on his wife
A broker refuses to work with Hispanic clients
A colleague held onto a security deposit for a month before depositing it
A colleague is engaged in undisclosed dual agency