Ethics - The 3 R's.pptxEthics - The 3 R's.pptx

Ethics – The 3 R’s
3 Hours Ethics
CE.5842001-RE (Classroom)
Copyright 2021 Real Estate School of Nevada, Inc. All Rights Reserved. 1

Housekeeping
 No phones or texting during the class.
 Please make sure that you sign in.
 Restrooms
 Direct attention to instructor.
 Refrain from distracting activities.
 Breaks
 Instructor Evaluations
 Attendance sign out
 Certificates of Completion

Ethics - The 3 R’s
Requirements, Responsibility
and Ramifications
Objectives:
 For the Real Estate Professional :
1. To know the requirements of becoming a REALTOR®
2. To understand the importance of following the Code
of Ethics
3. To understand their responsibilities to the public,
clients, customers and REALTORS®
4. To be aware of the ramifications of any unethical
conduct of the licensee
Copyright 2021 Real Estate School of Nevada, Inc. All Rights
Reserved. 3

What are Ethics?
 The rules of conduct recognized in respect to a
particular class of human actions or a particular
group.
What are ethics in real estate?
 A set of Professional Courtesies for Real Estate
Licensees to abide by in order to create a higher
standard of practice for the profession and the
public
Reserved. 4

Ethics and the Objectives of the
NATIONAL ASSOCIATION OF
REALTORS®
1. To provide facilities for education, to raise the standards of real
estate practice, and preserve the right of property ownership in
the interest of the public welfare
2. To promote and maintain high standards of conduct in the
transaction of real estate business
3. To formulate and promulgate a Code of Ethics for members of the
National Association
4. To license the right to display and use the emblem seal of the
NATIONAL ASSOCIATION OF REALTORS®, and the right to use the
terms of REALTOR®, REALTORS®, and REALTOR-ASSOCIATE®
5. To inform the public of the advantages of transacting business with
REALTORS® and to encourage use by members of the REALTOR®
mark
Reserved. 5

When is a Licensee a REALTOR®?
 Applicants for REALTOR® membership are required to
complete a minimum of two hours and thirty minutes
of orientation on the Code of Ethics of the National
Association of REALTORS®
 To earn a designation, a licensee has taken
coursework and demonstrated specific skills,
performance and knowledge in a particular area of
the real estate industry. The oath to follow the
Golden Rule is administered at these courses.
Reserved. 6

Regarding the REALTOR® Trademark
 The term REALTOR® has only one, meaning:
 REALTOR® is a federally registered collective membership mark
which identifies a real estate professional who is member of
the NATIONAL ASSOCIATION OF REALTORS® and subscribes to
its strict Code of Ethics* (Nar membership manual re: definition of
REALTOR)
 NRS 645.633 1. (a) Willfully using any trade name, service
mark or insigne of membership in any real estate organization
of which the licensee is not a member, without the legal right
to do so.
This emblem may only be used by members
of the NAR REALTOR®, REALTORS®, or
REALTOR-ASSOCIATE® in good standing. This
logo may not be edited.
Reserved. 7

17 Articles of the NAR Code of Ethics
 The 17 Articles are broad statements of ethical
principals.
 Since the Code of Ethics was adopted in 1913, the
Code has required the cooperation between
members, respect of other broker’s exclusive
relationships with clients, and the use of arbitration
concerning contractual disputes.
 The National Code of Ethics is Broken into 3
Categories:
◦ Articles 1-9 Duties to Clients and Customers
◦ Articles 10-14 Duties to the public
◦ Articles 15-17 Duties to Realtors
Reserved. 8

Articles 1-9
Duties to Clients and Customers
 Article 1 - Protect and Promote your Client’s interests,
but be honest with all parties
1. As the agent for your client, you must pledge to protect and promote
the interests of your clients. This is your fiduciary duty.
2. You still have the obligation to treat all parties with fairness and
honesty.
3. The agent must not mislead sellers, buyers or tenants in any area of
the transaction
4. The agent must disclose to the parties in a transaction the following:
a. If the agent is a party to the transaction or has a relationship to anyone else
in the transaction
b. If the agent is representing both parties, in writing and agreed to by both
parties
c. The source of all compensation to the brokerage
d. Any Business relationship between the brokerage and vendors
e. Any fees to be charged to the principal
Reserved. 9

Article 1(continued)
5. To preserve all confidential information of the client
including 1 year after the termination of the
professional relationship (NRS 645. ) The
broker/agent may reveal information in the following
instances:
1. With Written permission of the principal
2. Through a court order
3. If the client is breaking the law or has the intention of
breaking the law
4. If the REALTOR® needs to defend himself of wrongful
conduct
NRS 645.254- see attachment
Reserved. 10

Case study Article 1- Duty to client and Customer
Case #1-1: Fidelity to Client
 (Originally Case #7-1. Revised May 1988. Transferred to Article 1
November 1994.)
 Client A complained to a Board of REALTORS® that two of its
members, REALTORS® B and his sales associate, REALTOR-
ASSOCIATE® C, had failed to represent the client’s interests
faithfully by proposing to various prospective buyers that a price
less than the listed price of a house be offered. His complaint
specified that REALTOR® B, in consultation with him, had agreed
that $137,900 would be a fair price for the house, and it had
been listed at that figure. The complaint also named three
different prospective buyers who had told Client A that while
looking at the property, REALTOR-ASSOCIATE® C, representing
REALTOR® B, when asked the price had said, “It’s listed at
$137,900, but I’m pretty sure that an offer of $130,000 will be
accepted.”
Reserved. 11

 REALTOR® B and REALTOR-ASSOCIATE® C were notified of the
complaint and requested to be present at a hearing on the
matter scheduled before a Hearing Panel of the Board’s
Professional Standards Committee.
 During the hearing, REALTOR® B confirmed that he had agreed
with Client A that $137,900 was a fair price for the house, and
that it was listed at that figure. He added that he had asked for
a 90-day listing contract as some time might be required in
securing the full market value. Client A had agreed to do this
but had indicated that he was interested in selling within a
month even if it meant making some concession on the price.
The discussion concluded with an agreement on listing at
$137,900 and with REALTOR® B agreeing to make every effort to
get that price for Client A.
Reserved. 12

 REALTOR-ASSOCIATE® C said in the hearing that REALTOR® B had
repeated these comments of Client A and he, REALTOR-
ASSOCIATE® C, had interpreted them as meaning that an early
offer of about 10 percent less than the listed price would be
acceptable to the seller, Client A. Questioning by the Hearing
Panel established that neither REALTOR® B nor REALTOR-
ASSOCIATE® C had been authorized to quote a price other than
$137,900.
 It was the Hearing Panel’s conclusion that REALTOR® B was not in
violation of Article 1 since he had no reason to know of REALTOR-
ASSOCIATE® C’s actions. The panel did find REALTOR-ASSOCIATE®
C in violation of Article 1 for divulging his knowledge that the
client was desirous of a rapid sale even if it meant accepting less
than the asking price. The panel noted that such a disclosure was
not in the client’s best interest and should never be made
without the client’s knowledge and consent.
Reserved. 13

 REALTOR-ASSOCIATE® C said in the hearing that REALTOR® B had
repeated these comments of Client A and he, REALTOR-
ASSOCIATE® C, had interpreted them as meaning that an early
offer of about 10 percent less than the listed price would be
acceptable to the seller, Client A. Questioning by the Hearing
Panel established that neither REALTOR® B nor REALTOR-
ASSOCIATE® C had been authorized to quote a price other than
$137,900.
 It was the Hearing Panel’s conclusion that REALTOR® B was not in
violation of Article 1 since he had no reason to know of REALTOR-
ASSOCIATE® C’s actions. The panel did find REALTOR-ASSOCIATE®
C in violation of Article 1 for divulging his knowledge that the
client was desirous of a rapid sale even if it meant accepting less
than the asking price. The panel noted that such a disclosure was
not in the client’s best interest and should never be made
without the client’s knowledge and consent.
Reserved. 14

Articles 1-9
 Article 2:
1. Avoid exaggeration, misrepresentation, and
concealment of pertinent facts. Do not reveal facts
that are confidential under the scope of your agency
relationship.
◦ As a licensee, practice only in your area of expertise
◦ Disclose material facts and material defects to the
principal
Reserved. 15

Case study Article 2 - Duty to Client and Customer
Case #2-4: Obligation to Ascertain Pertinent Facts
 (Revised Case #9-10 May 1988. Transferred to Article 2 November 1994.)
 Shortly after REALTOR® A, the listing broker, closed the sale of a home to
Buyer B, a complaint was received by the Board charging REALTOR® A
with an alleged violation of Article 2 in that he had failed to disclose a
substantial fact concerning the property. The charge indicated that the
house was not connected to the city sanitary sewage system, but rather
had a septic tank.
 In a statement to the Board’s Grievance Committee, Buyer B stated that
the subject was not discussed during his various conversations with
REALTOR® A about the house. However, he pointed out that his own
independent inquiries had revealed that the street on which the house
was located was “sewered” and he naturally assumed the house was
connected. He had since determined that every other house on the
street for several blocks in both directions was connected. He stated that
REALTOR® A, in not having disclosed this exceptional situation, had failed
to disclose a pertinent fact.
Reserved. 16

 REALTOR® A’s defense in a hearing before a Hearing Panel of the
Professional Standards Committee was:
 That he did not know this particular house was not connected
with the sewer;
 That in advertising the house, he had not represented it as
being connected;
 That at no time, as Buyer B conceded, had he orally stated that
the house was connected;
 That it was common knowledge that most, if not all, of the
houses in the area were connected to the sewer; and
 That the seller, in response to REALTOR® A’s questions at the
time the listing was entered into, had stated that the house was
connected to the sewer.
Reserved. 17

 The panel determined that the absence of a sewer connection
in an area where other houses were connected was a
substantial and pertinent fact in the transaction; but that the
fact that the house was not connected to the sewer was not
possible to determine in the course of a visual inspection and,
further, that REALTOR® A had made appropriate inquiries of the
seller and was entitled to rely on the representations of the
seller. The panel concluded that REALTOR® A was not in
violation of Article 2.
Reserved. 18

Articles 1-9
 Article 3:
1. Cooperate with other Real Estate professionals to
advance Client’s best interests
a. Relates to the obligation to share information on listed
property and to make a property available to other brokers
for showing to prospective buyers when it is in the best
interests of the sellers.
b. See Pathways to Professionalism, Respect for Peers
Reserved.
19

Articles 1-9
 Article 4
1. When buying or selling, make your position in the
transaction or interest known.
a. This is for the protection of all parties and this disclosure
must be in writing.
 Article 5
1. Disclose present or contemplated interest in any
property to all parties.
NRS 645.252 1(c) Duties of licensee acting as agent in a
real estate transaction
 Article 6
1. REALTORS® shall not accept any commission, rebate
or profit on expenditures made for their client
without the client’s written consent.
Reserved. 20

Articles 1-9
 Article 7
1. REALTORS® shall not accept compensation from more than
1 party without the informed, written consent of all parties
of the transaction.
 Article 8
1. REALTORS® shall keep funds of clients and customers in a
special account separated from their own funds.
 Article 9
1. Assure whenever possible that transactional details are in
clear and understandable language and in writing for the
protection of all parties. A copy of each agreement will be
furnished to each party upon their signing
or initialing.
Reserved. 21

Articles 10-15
Duties to the Public
 Article 10
1. Relating to Fair Housing, the REALTOR® shall provide
equal service to all clients and customers. There is no
room for discrimination of any sort. Providing reliable
demographic information may be permitted to assist
with or complete a real estate transaction.
2. REALTORS® shall not advertise in any media
concerning real estate regarding discrimination or
preferences based on:
1. Race 4. Sex/Gender 7. National Origin
2. Color 5. Handicap 8. Sexual Orientation
3. Religion 6. Familial Status 9. Gender Identity
Reserved. 22

Reserved. 23

Articles 10-15
 Article 11
1. REALTORS® must be knowledgeable and competent
in the field of practice in which they ordinarily engage
OR obtain assistance from one who does or disclose
lack of experience to the principals. REALTORS® may
not offer information or give advise that is outside
their area of expertise.
2. Preparing opinions of Real Property Value, the
REALTOR®:
a. Must be knowledgeable about the type of property;
b. Have access to the information and resources necessary to
offer an accurate opinion; and
c. Be familiar with the area where the subject property is
located.
Reserved. 24

Articles 10-15
 Article 12
1. REALTORS® shall be honest and truthful in all
communications, and present a true picture in their
advertising, marketing and other representations. The
status as Real Estate Professionals is readily apparent, and
that any communication is from a Real Estate
Professional.
a. Offering free services or services at a discount must be disclosed.
b. REALTORS® must not offer a home for sale or lease or advertise
without the authority of the homeowner or representative.
REALTORS® shall not quote a price different than that which was
agreed upon by the homeowner.
c. The name of the Brokerage or Firm must be in all advertising by a
licensee.
NRS 645.315- see handout
Reserved. 25

Articles 10-15
 Article 12 (cont.)
d. Advertising in any form must be current and accurate.
e. Concerning internet advertising, the licensee may not engage
in deceptive Marketing, use of advertising developed by
other people, mislead consumers or deceptively use
metatags, keywords or other methods to direct internet
traffic
f. If the licensee intends to share or sell consumer information
gathered via internet, it must be disclosed.
g. Use and registration of URL’s must present a true picture.
h. Use of only registered designations, certifications and other
credentials that the licensee is permitted to use if they are
legitimately entitled.
See NRS 645.633 regarding trademarks. See NRS 645.315
regarding advertising.
 Article 13
1. REALTORS® will not engage in the unauthorized practice of
Law.
Reserved. 26

Case study Article 12 - Duties to the Public
Case #12-11: Advertisements by Individuals Other Than the Listing
Broker
 REALTOR® A placed a full-page ad in the Sunday supplement of
his local newspaper. In the body of the ad were pictures of
several homes and their addresses. At the top of the page was
the following: “We’ve sold these—we can sell yours, too.”
 The following week, three complaints were received from other
Board Members alleging that REALTOR® A’s ad was in violation of
Article 12. Each of the complaints noted that REALTOR® A had
participated in the transaction as the successful cooperating
broker who had located the eventual purchasers, but the
complaints also claimed that REALTOR® A’s claim to have “sold”
these properties was false and misleading since none of the
properties had been listed with him and, in one instance, the sale
had yet to close.
 Since all the complaints involved the same advertisement, they
were consolidated to be heard at the same hearing before a
Hearing Panel of the Professional Standards Committee.
Reserved. 27

Case study Article 12 - Duties to the Public
 At the hearing, REALTOR® A defended his actions on the basis that
although the properties had been listed with other brokers, he had been
the “selling” or “cooperating” broker and was entitled to advertise his role
in the transactions.
 The Hearing Panel agreed with REALTOR® A’s reasoning in their decision,
pointing out that Article 12 as interpreted by Standard of Practice 12-7,
provides that cooperating brokers (selling brokers) may claim to have
“sold” the property and that such claims may be made by either the listing
broker or the cooperating broker or by both of them upon acceptance of a
purchase offer by the seller. The panel also noted that REALTOR® A could
have shown that he had “participated in” or had “cooperated in” these
transactions and met his ethical obligations.
 The panel’s decision also indicated that during the existence of any listing,
the cooperating broker’s rights to advertise and market ﬂow from the
listing broker. However, claims of this nature were not advertisements of
the properties but rather were advertisements of the broker’s services.
The only limitation on the ability of a cooperating broker to claim or to
represent that a property had been “sold” was that the listing broker’s
consent would be required before a “sold” sign could physically be
placed on the seller’s property prior to closing.
Reserved. 28

Case study Article 12 - Duty to the public
Case #12-1: Absence of Name on Sign
 Prospect A observed a sign on a vacant lot reading: “For Sale—Call 330-
5215.” Thinking he would be dealing with a For Sale by Owner, he
called the number on the sign. He was surprised and offended that the
lot was exclusively listed by REALTOR® A, and the telephone number on
the sign was the home number of REALTOR-ASSOCIATE® B in REALTOR®
A’s ofﬁce.
 Prospect A ﬁled a complaint against REALTOR® A and REALTOR-
ASSOCIATE® B. alleging a violation of Article 12 of the Code of Ethics.
 At the hearing, REALTOR® A stated that he permitted REALTOR-
ASSOCIATE® B to put up the sign. REALTOR-ASSOCIATE® B’s defense was
that the sign was not a “formal” advertisement, such as a newspaper
advertisement, business card, or billboard, to which he understood
Article 12 to apply.
 The Hearing Panel determined that the sign was an advertisement
within the meaning of Article 12; that its use violated that Article of the
Code; and that both REALTOR® A and REALTOR-ASSOCIATE® B were in
Reserved. 29

Articles 10-15
 Article 14
1. REALTORS® are to be willing participants in the
Code Enforcement Procedures
1. They will not impede the Board’s investigative or
disciplinary proceeding s by filing frivolous or multiple
ethics complaints based on the same event or
transaction
Reserved. 30

Articles 15-17
Duties to REALTORS®
 Article 15
Ensure your comments about other Real Estate
professionals or their business practices are
truthful and not misleading.
1. REALTORS® must not knowingly file false or unfounded
ethics complaints.
2. To not knowingly make false statements regarding
hearsay or rumor of another licensee in any form of
media.
3. Any false statement made will be remedied through
publishing a clarification of the mistake and a
withdrawal of said violation.
Reserved. 31

Case study Article 15 - Duties to REALTORS®
Case #15-2: Intentional Misrepresentation of a Competitor’s Business
Practices
 Following a round of golf early one morning, Homeowner A approached
REALTOR® X. “We’ve outgrown our home and I want to list it with you,”
said Homeowner A. “I’m sorry,” said REALTOR® X, “but I represent buyers
exclusively.” “Then how about REALTOR® Z?,” asked Homeowner A, “I’ve
heard good things about him.” “I don’t know if I would do that,” said
REALTOR® X, “while he does represent sellers, he doesn’t cooperate with
buyer brokers and, as a result, sellers don’t get adequate market exposure
for their properties.”
 Later that day, Homeowner A repeated REALTOR® X’s remarks to his wife
who happened to be a close friend of REALTOR® Z’s wife. Within hours,
REALTOR® Z had been made aware of REALTOR® X’s remarks to
Homeowner A earlier in the day. REALTOR® Z filed a complaint against
REALTOR® X charging him with making false and misleading statements.
REALTOR® Z’s complaint was considered by the Grievance Committee
which determined that an ethics hearing should be held.
Reserved. 32

 At the hearing, REALTOR® Z stated, “I have no idea what REALTOR® X was
thinking about when he made his comments to Homeowner A. I always
cooperated with other REALTORS®.” REALTOR® X replied, “That’s not so. Last
year you had a listing in the Multiple Listing Service and when I called to make
an appointment to show the property to the buyer, you refused to agree to
pay me.” REALTOR® Z responded that he had made a formal offer of
subagency through the MLS with respect to that property but had chosen not
to offer compensation to buyer agents through the MLS. He noted, however,
that the fact that he had not made a blanket offer of compensation to buyer
agents should not be construed as a refusal to cooperate and that he had, in
fact, cooperated with REALTOR® X in the sale of that very property.
 In response to REALTOR® Z’s questions, REALTOR® X acknowledged that he
had shown his buyer-client REALTOR® Z’s listing and that the buyer had
purchased the property. Moreover, REALTOR® X said, upon questioning by the
panel members, he had no personal knowledge of any instance in which
REALTOR Z had refused to cooperate with any other broker but had simply
assumed that REALTOR® Z’s refusal to pay the compensation REALTOR® X had
asked for was representative of a general practice on the part of
REALTOR® Z.
Reserved. 33

 The Hearing Panel, in its deliberations, noted that cooperation and
compensation are not synonymous and though formal, blanket offers of
cooperation and compensation can be communicated through Multiple
Listing Services, even where they are not, cooperation remains the
norm expected of REALTORS®. However, to characterize REALTOR® Z’s
refusal to pay requested compensation as a “refusal to cooperate” and
to make the assumption and subsequent statement that REALTOR® Z
“did not cooperate with buyer agents” was false, misleading, and not
based on factual information. Consequently, REALTOR® X was found in
Reserved. 34

Articles 15-17
 Article 16
Respect exclusive representation or exclusive
broker relationship agreements that other Real
Estate Professionals have with their clients.
1. REALTORS® may not solicit property owners who
have been identified by a real estate sign, MLS, or
other marketing which shows the property is in an
exclusive agency relationship with another Real
Estate professional until that agency relationship
has expired or been withdrawn.
Reserved. 35

Articles 15-17
 Article 16
2. REALTORS® may not solicit property owners who
have been identified by a real estate sign, MLS, or
other marketing which shows the property is in an
exclusive agency relationship with another Real
Estate professional. see NRS 645.635
3. REALTORS® shall not ask clients to pay more than
one commission except with their informed consent.
4. Compensation will be a transaction between the
Principal brokers and not through the sub agents.
Reserved. 36

Articles 15-17
 Article 16
5. Signs that show the home is listed, may only be
placed on the property with the consent of the
seller or his representative.
6. REALTORS® shall not induce clients of another Real
Estate professional to cancel any contracts in order
to make them their new client.
See NRS 645.635
Reserved. 37

Case #16-2: Respect for Agency
 (Revised Case #21-6 May 1988. Transferred to Article 16 November 1994.)
 Client A gave a 180-day exclusive right to sell listing of a commercial
property to REALTOR® B, specifying that no “for sale” sign was to be placed
on the property. REALTOR® B and his sales associates started an intensive
sales effort which, after three months, had produced no offer to buy. But it
had called attention to the fact that Client A’s property was for sale. When
REALTOR® C heard of it, he called on Client A, saying that he understood
that his property was, or soon would be, for sale, and that if Client A would
list the property with him exclusively, he felt confident that he could
provide prompt action. Client A said the property was exclusively listed
with REALTOR® B under a contract that still had about 90 days to run.
 “In that case,” said REALTOR® C, “you are bound for the next 90 days to
REALTOR® B. I have a really outstanding organization, constantly in touch
with active buyers interested in this class of property. I am in a position to
render you an exceptional service, and I will plan to call you again in 90
days or so.”
Reserved. 38

 The property remained unsold during the term of REALTOR® B’s listing
contract. REALTOR® C called again on Client A and obtained his assurance
that he would sign an exclusive listing of the property upon expiration of
the listing contract.
 When REALTOR® B called on Client A on the last day of the listing contract
to seek its renewal, Client A told him of REALTOR® C’s two visits. “I was
impressed by REALTOR® C’s assurance of superior service” Client A told
REALTOR® B, “and in view of the fact that my listing with you produced
no definite offer in the 180-day period, I have decided to give REALTOR®
C a listing tomorrow.”
 REALTOR® B filed a complaint with the Grievance Committee of the
Board, outlined the facts, and charged that REALTOR® C’s conduct had
been inconsistent with Article 16 of the Code of Ethics.
 The Grievance Committee referred the matter to the Professional
Standards Committee.
Reserved. 39

 At the conclusion of the hearing, the panel found that REALTOR® C had
violated Article 16 by failing to respect the exclusive agency of
REALTOR® B. The panel’s decision advised that REALTOR® C’s original
contact with Client A, made at a time when he had no knowledge of
REALTOR® B’s exclusive listing, was not in itself unethical, but that as
soon as he learned of REALTOR® B’s status as the client’s exclusive
agent, he should have taken an attitude of respect for the agency of
another REALTOR®, and refrained from any effort to get the
listing until after the expiration date of the original contract.
 REALTOR® C’s attitude of regarding the client’s relationship with
REALTOR® B as a kind of misfortune, of presenting his own service as
superior to REALTOR® B’s, and of suggesting to the client that, having a
better capacity to serve him, he could wait until REALTOR® B’s listing
had expired, was, the panel said, contrary to the respect for another
REALTOR®’s exclusive agency required by Article 16.
Reserved. 40

 The Hearing Panel’s decision further advised REALTOR® C that he
would have conducted himself in accord with Article 16 if, upon
learning of REALTOR® B’s status as exclusive agent, he had expressed
his willingness to cooperate with REALTOR® B in the sale of Client A’s
property.
Reserved. 41

Articles 15-17
Duties to REALTORS
 Article 17
◦ In the event of contractual disputes between
REALTORS® associated with different firms, the
REALTORS® will mediate/arbitrate the dispute if the
local board requires it.
1. Examples:
a. Entitlement for compensation
b. Procuring cause
c. Unethical comments or actions
Reserved. 42

What happens when the Code of Ethics
is violated?
 Only REALTORS®, REALTOR-ASSOCIATES® as members
of the NAR are subject to the Code of Ethics.
 Only violations of the articles can result in disciplinary
action. A licensee may not be found in violation of
standards of practice, only it’s founding article.
 If the code of Ethics conflicts with the law, the law will
take precedence.
 Associations do not determine whether law or
regulations have been violated. These decisions must
be made by the regulatory authorities or courts.
Reserved. 43

End-of-course Quiz
 You are now ready to take the end-of-course quiz.
Reserved. 44

End-of-course Quiz
1. There are 17 articles and 4 sections in the Code of
Ethics.
A. True
B. False
Reserved. 45

End-of-course Quiz
2. Only the public can file a complaint against a
REALTOR®.
A. True
B. False
Reserved. 46

End-of-course Quiz
3. The Code of Ethics was adopted to establish standards
of conduct in the Industry.
A. True
B. False
Reserved. 47

End-of-course Quiz
4. The licensee may use the REALTOR® trademark
whether a member of NAR or not.
A. True
B. False
Reserved. 48

End-of-course Quiz
5. The Code of Ethics requires REALTORS® to respect
agency relationships that other REALTORS® have with
their clients.
A. True
B. False
Reserved. 49

End-of-course Quiz
6. The REALTOR® representing the seller must be
careful not to say anything about the property or the
price which would hard the owner’s interests.
A. True
B. False
Reserved. 50

End-of-course Quiz
7. The Code of Ethics prohibits misrepresentation or
exaggeration about pertinent facts regarding the
property or the transaction.
A. True
B. False
Reserved. 51

End-of-course Quiz
8. The Golden Rule is part of the Preamble of the Code
of Ethics.
A. True
B. False
Reserved. 52

End-of-course Quiz
9. The REALTOR® has an obligation to protect and
promote the interests of his or her clients regardless of
the effect on any other party or REALTOR® .
A. True
B. False
Reserved. 53

End-of-course Quiz
10. Understanding the Fair Housing laws is an
important part of being a competent REALTOR®.
A. True
B. False
Reserved. 54

Ethics – The 3 R’s
3 Hours Ethics
CE.5842001-RE (Classroom)

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