National Association of REALTORS® REALTOR® Code of Ethics New Member Course Answers 2022

1. The idea of “ethics” can mean:

The answer is E – all of the above.

2. At the time the REALTOR® Code of Ethics was adopted:

The answer is B – there were no real estate licensing laws.

3. When real estate licensing laws were established, state legislatures:

The answer is B – looked to the Code of Ethics as a source of standards for of the real estate industry.

4. The Code of Ethics:

The answer is A – was adopted to establish standards of conduct for the industry.

5. “Alternative Dispute Resolution”:

The answer is C – has been mandated since the Code of Ethics was adopted (in the form of arbitration).

1. The Preamble to the Code of Ethics is an aspirational introduction to the Code which sets ideals that REALTORS® strive to meet.

The answer is A – True.

2. The phrase “Under all is the land”:

The answer is D – all of the above.

3. The Preamble:

The answer is C – cannot be used to discipline a REALTOR®.

4. The three major categories of the Code are (mark the three correct ones):

The answers are: Duties to REALTORS®, Duties to Clients and Customers, and Duties to the Public.

5. Articles of the Code are:

The answer is D – all of the above.

6. A member can be sanctioned for violating the Pathways to Professionalism.

The answer is B – False.

1. The Code of Ethics is enforced primarily by:

The answer is D – the local Association of REALTORS®.

2. The two types of complaints typically resolved by local Associations are (check two):

The answers are: Arbitration Claims and Ethics Complaints.

3. The two committees which receive, review and resolve ethics complaints are (check two):

The answers are: The Grievance Committee and The Professional Standards Committee.

4. The Grievance Committee’s role is to:

The answer is B – have a preliminary meeting to determine whether there was a possible violation of the Code.

5. The function of the Professional Standards Committee is to:

The answer is B – determine whether¸ after a due process hearing¸ the respondents were in violation of the Code by clear¸ strong and convincing evidence.

6. A “due process” hearing includes which of the following (check all that apply):

The answers are: the right to present evidence, testimony and witnesses; the right to legal counsel; the right to cross-examine the complainant and complainant’s witnesses; and 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):

The answers are: Letter of Reprimand; Fine not to exceed $15,000; Suspension of MLS privileges; Education; and Letter of Warning.

1. A request for arbitration is initially reviewed by:

The answer is C – the grievance committee.

2. REALTORS® are required to arbitrate:

The answer is D – those disputes specified by Article 17 of the Code of Ethics.

3. Mediation is:

The answer is A – a process that can be required at local discretion in which a trained mediator assists the parties in coming to a mutually acceptable resolution of their dispute.

4. An arbitration panel will decide a dispute:

The answer is A – based on procuring cause.

5. The concept of procuring cause:

The answer is E – all of the above.

1. When entering into a listing agreement, REALTORS® must advise sellers/landlords of:

The answer is A – any potential to act as a disclosed dual agent.

2. Article 1 requires REALTORS® to:

The answer is B – protect and promote the client’s interests.

3. Article 1 requires REALTORS® to treat all parties:

The answer is C – honestly.

4. REALTORS® must submit offers:

The answer is B – as quickly as possible.

5. The duty of confidentiality:

The answer is D – all of the above.

1. The main idea of Article 2 is:

The answer is A – disclosure.

2. A REALTOR® has an obligation to:

The answer is 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.

4. “Pertinent facts” include:

The answer is 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.

1. Which of the following is the most accurate paraphrase of Article 9?

The answer is 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.

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.

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.

5. Which of the following documents are covered by Article 9?

The answer is D – all of the above.

1. How can Article 12 best be summarized?

The answer is 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.

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.

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.

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.

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.

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.

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.

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.

5. When must REALTORS® disclose their brokerage relationship?

The answer is D – All of the above.