Code of Ethics Study Complete Course
Quick Quiz 1-2
1. 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.
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 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.
Quick Quiz 3-4
1. The Preamble to the Code of Ethics is an aspirational introduction to the Code which sets ideals that REALTORS® strives to meet.
2. The phrase "Under all is the land":
a. is in 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 a 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.
6. A member can be sanctioned for violating the Pathways to Professionalism.
Question: 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®.
Quick Quiz 5
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):
Money Claims for Damages
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
Attendance at Association meetings
Letter of Warning
Question: 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.
Quick Quiz 6
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 arising out of the real estate business.
b. all disputes with other REALTORS®.
c. all disputes with clients and customers.
d. all disputes specified by Article 17 of the Code of Ethics.
3. Mediation is:
a. a voluntary process 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 party's 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.
Quick Quiz 7
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 or designations they hold.
2. Article 1 requires REALTORS® to:
a. place the client’s interests after their own.
b. protect and promote clients' interests.
c. be honest but only with clients.
d. keep the clients' interests primary and disregard any other obligations.
3. Article 1 requires REALTORS® to treat all parties:
a. fairly and honestly.
d. with respect and courtesy.
4. REALTORS® must submit offers:
a. within a reasonable time.
b. as quickly as possible.
c. as quickly 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 the 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.
Quick Quiz 8
1. The main idea of Article 2 is:
d. technical expertise.
2. REALTORS® have an obligation to:
a. disclose facts only about the listed property.
b. avoid misrepresentation of pertinent facts about property and transactions.
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 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 facts about the transaction.
5. In general, REALTORS® can rely on the statements of sellers:
c. As long as there is no apparent information indicating a seller is not being truthful.
d. Only if the REALTOR® verifies the information given to him/her by the seller.
Quick Quiz 9
1. The main idea of Article 3 is:
2. A REALTOR®, acting as a listing broker, has an obligation to:
3. Standard of Practice 3-4 requires REALTORS® to:
4. Article 3's Standards of Practice require:
5. Broker A works in Green Town and belongs to the Green Town MLS. His brother asks him to find a property in a resort area 100 miles from Green Town. Broker A does not belong to the MLS in the resort area. Broker A calls listing brokers and asks to show their listings to his brother. Broker A then writes an offer for his brother on Broker B's listing. The offer is accepted. When Broker B refuses Broker A's request for the cooperative commission, Broker A files an arbitration claim against Broker B. What will be the likely result?
Quick Quiz 10
1. What summarizes Article 11 the best?
2. Real estate disciplines specified by Article 11 include all of the following EXCEPT:
a. Residential real estate brokerage.
b. Real estate syndication.
c. Commercial and industrial real estate brokerage.
d. International real estate.
e. Resort and vacation real estate.
f. Real property management.
3. If REALTORS® provide specialized services outside of the discipline in which they engage, they must:
a. hire and pay a person who is competent in the discipline.
b. fully disclose the facts to their clients.
c. engage the assistance of a person who is competent about the property or in the service.
d. b and/or c.
e. None of the above.
4. If a REALTOR® prepares an opinion of value,
a. the REALTOR® must be a licensed or certified appraiser.
b. the opinion of value must contain the elements detailed in Standards of Practice 11-1.
c. the opinion of value must contain the elements detailed in Standard of Practice 11-1 only if the opinion given is other than in pursuit of a listing or assisting a purchaser in formulating an offer to purchase.
d. the REALTOR®'s conduct is unethical if a fee is charged for the opinion
Quick Quiz 11
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 the agency and other exclusive relationships other REALTORS® have with their clients.
c. The Code only addresses interference with agency relationships.
d. You may not interfere in any relationship another REALTOR® has with a member of the public.
2. When can a REALTOR® call the client of another REALTOR® to secure information about the nature and expiration date of the listing?
a. At any time, as long as the other REALTOR® doesn't find out.
b. If the listing broker, when asked, refuses to disclose the nature and expiration date of the listing.
d. If the other REALTOR® has a non-agency listing agreement.
3. When can a REALTOR® “solicit” another broker’s exclusive listing?
b. At any time, anti-trust laws prohibit restrictions on solicitations.
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 REALTOR® initiates a discussion at a social event, the REALTOR® can discuss the terms of a future listing with the owner.
4. When can a REALTOR® deal or negotiate with another REALTOR®'s client who is subject to an exclusive agreement?
b. At any time - there are no restrictions on solicitation.
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 the first contact, to sellers of unlisted property, if the REALTOR® is acting as the buyer’s agent.
b. Upon the first contact, to sellers’ agents or brokers, if the REALTOR® is acting as the buyer’s agent.
c. As soon as practical, to unrepresented buyers, if the REALTOR® is acting as the seller’s agent.
d. All of the above.
1. First adopted in 1913, the Code of Ethics sets objective standards that all REALTORS® agree to follow in their real estate practice.
2. The fundamental basis for the Code of Ethics is the protection of:
a. the public
b. the REALTOR® and their interests
c. the Association
d. the licensing authority
3. Which one of the following statements is FALSE? When the Code of Ethics first was adopted:
a. there were well-established real estate license laws
b. the real estate industry had a history of speculation, exploitation, and disorder
c. real estate practitioners, if licensed at all, were licensed as peddlers
d. it included the duty to arbitrate
4. Many judicial decisions look to the Code of Ethics as a standard of conduct.
5. Which one of the following statements about the Preamble to the Code of Ethics is FALSE?
a. It provides an aspirational foundation for the Code of Ethics.
b. Its principles are high ideals toward which REALTORS® should strive.
c. Its concepts focus on honesty, integrity, fairness, and moral conduct in business relations
d. It can be cited as the basis for disciplinary action.
6. The Code of Ethics is divided into three major sections. What are they?
a. Duties to Clients and Customers, Duties to Brokers, and Duties to Licensees
b. Duties to Clients and Customers, Duties to the Public, and Duties to REALTORS®
c. Duties to Brokers, Duties to the Public, and Duties to Licensees
d. Duties to Clients and Customers, Duties to the Public, and Duties to Brokers
7. Who can file a complaint alleging a violation of the Code of Ethics?
a. Members of the public
c. Both a and b
d. Only an association can file a complaint
8. A REALTOR® can be found in violation of a Standard of Practice and/or Case Interpretation.
c. Depends if it is cited in an ethics complaint
9. Enforcing the Code of Ethics primarily is the responsibility of the NATIONAL ASSOCIATION OF REALTORS®.
10. What types of complaints typically are resolved by an association? (Check all that apply.)
a. License law violations
b. Ethics complaints
c. Arbitration claims
d. Affordable housing complaints
e. Employment disputes
11. An ethics complaint is to “conduct”, as an arbitration claim is to “______”.
d. fiduciary duty
12. Which one of the following procedural questions are NOT considered by a grievance committee when reviewing ethics complaints or arbitration requests?
a. Is the respondent a member of the association?
b. Is the complaint timely filed?
c. Has the Code of Ethics been violated?
d. Are the appropriate parties/articles named?
e. Based on the information provided, could the Code of Ethics have been violated?
f. If there is an arbitrable issue?
13. An association’s professional standards committee or a panel of that committee conducts hearings to determine whether the Code of Ethics has been violated or to determine who is entitled to money in a contractual dispute.
14. Due process is essential in providing fair hearings. Examples of due process concepts include the following. (Check all that apply.)
a. An impartial panel comprised of one’s peers
b. Ability to be represented by Legal Counsel
c. Access to an appeal process
d. An adequate opportunity to prepare a defense
15. The standard of proof in an ethics hearing is:
a. beyond a reasonable doubt
b. the preponderance of the evidence
c. clear, strong, and convincing proof
d. the great weight of the evidence
16. What is the maximum fine that can be imposed for a violation of the Code of Ethics?
17. This concept generally is used to decide arbitration claims and is defined as “the cause originating a series of events which, without break in their continuity, result in the accomplishment of the prime objective.” What is it?
a. Right to compensation
b. Procuring cause
c. Entitlement to compensation
d. Cause and effect
18. Which one statement about mediation is FALSE?
a. All associations must offer mediation to their members as of January 1, 2002.
b. Mediation enables parties to resolve their own disputes.
c. Mediators determine who is entitled to compensation.
d. Mediation provides for a win/win outcome.
e. Mediation is a voluntary process.
19. Pathways to Professionalism covers which three areas?
a. Respect for the public, respect for the member, respect for the local association
b. Respect for the property, respect for the Code, respect for the local association
c. Respect for the public, respect for the property, respect for peers
d. Respect for the Code, respect for the transaction, respect for each other
20. If a buyer or cooperating broker asks a listing broker about other offers on a property listed with that broker, the Code of Ethics requires the listing broker to divulge the existence of all other offers, when granted authority to do so by whom?
a. The seller
b. The person who made the offer
c. No authority is needed
d. A REALTOR® must never divulge the existence of another offer on a property
21. REALTORS® are obligated to discover and disclose adverse factors that are reasonably apparent to someone who has the expertise required by their real estate licensing authority.
22. The Code of Ethics requires REALTORS® to:
a. cooperate with and compensate other brokers
b. cooperate with other brokers, but does not require an offer of compensation
c. compensate other brokers
d. compensate other brokers unless compensation is not in the client’s best interest
23. REALTORS® must be competent in:
a. the disciplines in which they engage
b. all fields in which their real estate license permits them to act
c. residential, commercial, and investment transactions
d. any field outside the real estate business that may be associated with a transaction (such as - inspections)
24. Are “nonagency” relationships protected under Article 16
b. Yes, even if there is no client relationship.
c. Yes, if the nonagency relationship is exclusive and is defined by state law.
d. Yes, if the nonagency relationship is exclusive or not.
25. The REALTORS® Code of Ethics _______________. (Check all that apply.)
a. Protects the buying and selling public
b. Promotes a competitive real estate marketplace
c. Enhances the integrity of the industry
d. Is your promise of performance
e. Is your promise of professionalism
Code of Ethics Test
1. The Code of Ethics is based on the concept of:
3. When the Code of Ethics was adopted:
4. The Code of Ethics was adopted to establish standards of conduct for the real estate industry.
5. The Golden Rule is quoted in the Code's Preamble.
6. A listing broker should:
7. The Code of Ethics protects:
8. The Code of Ethics has three major sections:
9. Article 2 prohibits exaggeration, misrepresentation, or concealment of pertinent facts.
10. Who can file an ethics complaint against a REALTOR®?
11. Arbitration hearings are often based on:
12. The Code requires that REALTORS® respect:
13. The Code prohibits:
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.
15. When may a listing broker change her offer of compensation to a cooperating broker?
16. REALTORS® must discover and disclose:
17. Disciplinary action in an ethics hearing can include:
18. Discipline in an ethics hearing may include:
19. The ethics enforcement process includes the initial screening of complaints by the:
20. If the Grievance Committee concludes potentially unethical conduct may have occurred,
21. Under the Code, a copy of an offer to purchase must be given to the buyer:
22. The Code requires that REALTORS®' advertising clearly identify:
23. The Preamble to the Code:
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.
Code of Ethics Study Complete Course
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