“Ethics and Business Practices” Class Chapter 1 quiz questions with no answers.
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1. A REALTOR, who is the designated broker for a firm, has one company business account and keeps all company and client funds in the one business account that he uses for all business expenditures and transfers client funds out at appropriate times during a transaction, is this allowable?

A.    No, a REALTOR, who is the designated broker for the firm, must keep monies coming into their possession in trust for other persons in separate special accounts in an appropriate financial institution.

B.     That’s allowable, as long as he keeps careful track of the funds.

C.     Yes, as long as everyone gets paid at the appropriate time, that’s fine.

D.    None of the above.

2. What is the difference between the Articles of the Code and the Standards of Practice?

A.    The Articles are broad statements of ethical principles while the Standards support, interpret, and amplify the Articles under which they are included.

B.     The Standards are broad statements of ethical principles while the Articles support, interpret, and amplify the Standards under which they are included.

C.     Violations of the Standards can result in disciplinary while violation of the Articles will not.

D.    None of the above.

3. When reviewing disciplinary action for violations of the Code, when might the Preamble be used as the basis for disciplinary action?

A.    Never, it only describes subjective ideals, not measurable standards.

B.     Only in cases of general violations of moral conduct in business relations.

C.     In any case where there are allegations of unfair business practices.

D.    None of the above.

4. What happens if a Realtor or Realtor-Associate member violates the NAR Code of Ethics?

A.    They will be referred to the courts for legal action.

B.     They can be subject to sanctions by their local Association through procedures established by NAR.

C.     They may be brought up on charges by the Attorney General in their state.

D.    None of the above.

5. When entering into listing contracts, Realtors must advise sellers/landlords of:

A.    The Realtor’s company policies regarding cooperation and the amount(s) of any compensation that will be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities;

B.     The fact that buyer/tenant agents or brokers, even if compensated by listing brokers, or by sellers/landlords may represent the interests of buyers/tenants; and

C.     Any potential for listing brokers to act as disclosed dual agents, e.g., buyer/tenant agents. (Adopted 1/93, Renumbered 1/98, Amended 1/03)

D.    All of the answers

6. According to Article 2, which of the following statements are TRUE?

A.    Realtors must disclose all known material facts and are also obligated to discover latent defects in the property.

B.     Realtors must disclose all known material facts but are not obligated to discover latent defects in the property.

C.     Realtors are obligated to advise on matters outside of the scope of their real estate license.

D.    None of the above.

7. Which of the following principles are included in the Preamble to the Code of Ethics?

A.    Honesty and integrity

B.     Fairness

C.     Moral conduct in business relations

D.    All of the above

8. According to Article 1, what is the primary obligation of a Realtor?

A.    To make their brokerage as profitable as possible.

B.     To cooperate with all other Realtors.

C.     To protect and promote the interests of their client and to treat all parties honestly.

D.    All of the above.

9. Business ethics applies to the conduct of whom?

A.    Only individuals.

B.     Only corporations.

C.     Only the Board of Directors

D.    Individuals and the entire organization.

10. Which of the following is the correct definition of “ethics,” according to Merriam Webster?

A.    Something (as a principle or quality) intrinsically valuable or desirable.

B.     Dealing with what is good and bad and with moral duty and obligation.

C.     A comprehensive and fundamental law, doctrine, or assumption.

D.    None of the above.

11. Which of the following does Article 2 obligate a licensee to perform?

A.    Advise on matters outside the scope of their license

B.     Disclose Confidential information

C.     Discover latent defects

D.    None of the answers are correct

12. What is the primary difference between personal ethics and business ethics?

A.    Personal ethics reflect general expectations of any person in any society while business ethics reflect required behavior within the context of a professional practice.

B.     There is no difference between the two.

C.     Business ethics is governed entirely by each company’s business mandate.

D.    None of the answers shown are correct.

13. A Realtor knows his friend wants to make an offer on a property he has listed so he holds another offer he has received to present to the client until his friend’s offer arrives. Is this allowed?

A.    Yes, as long as both offers are presented at the same time.

B.     No, offers must be submitted objectively and as quickly as possible.

C.     Yes, as long as he tells the client which offer came in first.

D.    None of the above

14. A REALTOR, who is the designated broker for a firm, has one company business account and keeps all company and client funds in the one business account that he uses for all business expenditures and transfers client funds out at appropriate times during a transaction, is this allowable?

A.    No, a REALTOR, who is the designated broker for the firm, must keep monies coming into their possession in trust for other persons in separate special accounts in an appropriate financial institution.

B.     That’s allowable, as long as he keeps careful track of the funds.

C.     Yes, as long as everyone gets paid at the appropriate time, that’s fine.

D.    None of the above.

15.  Which of the following statements are TRUE with regard to ethics?

A.    Ethics are the ideal in terms of which something can be judged.

B.     Ethics are a basis for comparison.

C.     Ethics are the principles or conditions that customarily govern.

D.    Ethics are a system of principles governing morality and acceptable conduct.

16. According to Article 1, what is the primary obligation of a Realtor?

A.    To make their brokerage as profitable as possible.

B.     To cooperate with all other Realtors

C.     To protect and promote the interests of their client and to treat all parties honestly.

D.    All of the above.

17. According to Article 2, which of the following statements are TRUE?

A.    Realtors must disclose all known material facts and are also obligated to discover latent defects in the property.

B.     Realtors must disclose all known material facts but are not obligated to discover latent defects in the property.

C.     Realtors are obligated to advise on matters outside of the scope of their real estate license.

D.    None of the above.

18.  When entering into listing contracts, Realtors must advise sellers/landlords of:

A.    The Realtor’s company policies regarding cooperation and the amount(s) of any compensation that will be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities;

B.     The fact that buyer/tenant agents or brokers, even if compensated by listing brokers, or by sellers/landlords may represent the interests of buyers/tenants; and

C.     Any potential for listing brokers to act as disclosed dual agents, e.g., buyer/tenant agents. (Adopted 1/93, Renumbered 1/98, Amended 1/03)

D.    All of the answers

19.  REALTORS shall avoid _______________________of pertinent facts relating to the property or the transaction

A.    Exaggeration

B.     Misrepresentation,

C.     Concealment

D.    All of the answers

20.  What is the difference between the Articles of the Code and the Standards of Practice?

A.    The Articles are broad statements of ethical principles while the Standards support, interpret, and amplify the Articles under which they are included.

B.     The Standards are broad statements of ethical principles while the Articles support, interpret, and amplify the Standards under which they are included.

C.     Violations of the Standards can result in disciplinary while violation of the Articles will not.

D.    None of the above.

21. What are some of the benefits to professions like real estate having an internally enforced code of ethics that members of the profession must follow?

A.    It prevents exploitation of the client.

B.     It preserves the integrity of the profession.

C.     It allows the profession to define a standard of conduct and ensure that individual practitioners meet this standard.

D.    All of the above.

22. Business ethics applies to the conduct of whom?

A.    Only individuals.

B.     Only corporations.

C.     Only the Board of Directors

D.    Individuals and the entire organization.

E.     You answered incorrectly

23. Can a Realtor represent both parties in the same transaction?

A.    Never, that would be a violation of the Ethics Code.

B.     Yes but only when it’s that Realtor’s own listing.

C.     Yes, but only after full disclosure to and with informed consent of both parties.

D.    None of the above.

24. What happens if a Realtor or Realtor-Associate member violates the NAR Code of Ethics?

A.    They will be referred to the courts for legal action.

B.     They can be subject to sanctions by their local Association through procedures established by NAR.

C.     They may be brought up on charges by the Attorney General in their state.

D.    None of the above.

25.  REALTORS shall avoid _______________________of pertinent facts relating to the property or the transaction

A.    Exaggeration

B.     Misrepresentation,

C.     Concealment

D.    All of the answers

26. What was the original name of the National Association of REALTORS when it was first founded?

A.    The National Association of Real Estate Exchanges

B.     The National Association of Real Estate Professionals

C.     The National Association of Real Estate Boards

D.    None of the above

27. According to Article 1, what is the primary obligation of a Realtor?

A.    To make their brokerage as profitable as possible.

B.     To cooperate with all other Realtors.

C.     To protect and promote the interests of their client and to treat all parties honestly.

D.    All of the above.

28.  A Realtor is preparing a valuation of a property for a fee on a sliding scale depending on what value of the property he comes up with. Is this allowed?

A.    Yes, as long as the contract is in writing, a sliding fee scale based on the value of the property is allowed.

B.     No, fees for preparing appraisals or other valuations must not be contingent upon the amount of the appraisal or valuation.

C.     Yes, property valuations are not covered in the Code of Ethics.

D.    None of the above.

29.  A REALTOR, who is the designated broker for a firm, has one company business account and keeps all company and client funds in the one business account that he uses for all business expenditures and transfers client funds out at appropriate times during a transaction, is this allowable?

A.    No, a REALTOR, who is the designated broker for the firm, must keep monies coming into their possession in trust for other persons in separate special accounts in an appropriate financial institution.

B.     That’s allowable, as long as he keeps careful track of the funds.

C.     Yes, as long as everyone gets paid at the appropriate time, that’s fine.

D.    None of the above.

30. When entering into listing contracts, Realtors must advise sellers/landlords of:

A.    The Realtor’s company policies regarding cooperation and the amount(s) of any compensation that will be offered to subagents, buyer/tenant agents, and/or brokers acting in legally recognized non-agency capacities;

B.     The fact that buyer/tenant agents or brokers, even if compensated by listing brokers, or by sellers/landlords may represent the interests of buyers/tenants; and

C.     Any potential for listing brokers to act as disclosed dual agents, e.g., buyer/tenant agents. (Adopted 1/93, Renumbered 1/98, Amended 1/03)

D.    All of the answers

“Ethics and Business Practices” Class Chapter 2 quiz questions with no answers.
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1. Which of the following repairs or home improvements would you recommend to a seller before listing?

A.    Add a swimming pool

B.     Add an addition to gain more square footage

C.     Replace a roof damaged by hail

D.    Replace the patio furniture

2. The term “Won’t Last” is:

A.    Used to describe homes that should be torn down

B.     An often employed term that will not, by itself, increase the sense of urgency for the buyer

C.     Effective when using a limited time marketing period

D.    Used in marketing distressed homes where foreclosure is imminent

3. Which is NOT a seller’s alternative in deciding how to sell his/her home?

A.    Discount brokerages

B.     Traditional full service real estate brokerages

C.     For sale by owner (FSBO)

D.    Your brother who just passed his real estate exam

4. What do you tell a seller who needs to buy another home in a hot sellers’ market?

A.    Consider moving out now to give buyers the maximum options for moving

B.     Suggest a contingency for the seller securing a replacement home when an offer is received

C.     Suggest looking for replacement housing, including temporary housing and storage, in order to take advantage of the best offer

D.    Help the seller find a new home before putting theirs on the market

5 of 10 Are open houses necessary in a hot market?

A.    They are still an effective marketing method of exposure if approved by the seller

B.     No, but they are a good way to capture potential buyers for clients

C.     They are no longer safe for licensees

D.    Depends – The seller should have the option of input into the marketing plan

6. Is asking for feedback too aggressive for an open house?

A.    Yes – potential buyers will immediately think they are being “sold”

B.     No – most people like to give their opinion

C.     Yes – in a hot sellers’ market, you should not let a buyer take charge

D.    It may be, but you are working for the seller, and if you don’t ask, you likely won’t get any feedback

7. In a hot sellers’ market, can a rookie or part-time agent get listings?

A.    Not likely; there are too many experienced full-time agents out there

B.     They will need to cut their teeth on buyers before going after listings

C.     A licensee can demonstrate that he/she has access to resources (team or partner or broker) that more than makes up for a lack of experience or full time status

D.    Only distressed listings

8. Factors contributing to making the best first impression of a home on the internet are:

A.    High quality photos highlighting the home’s best features only

B.     High quality photos featuring complete views of every room and all exterior elevations

C.     Dynamic marketing remarks using key catch phrases and creating the sense of urgency to move quickly as a buyer

D.    Timing the listings to appear on Friday

9. Use of “Sold” or “Under Contract” riders:

A.    Is great for business as neighbors will see how fast you sold the home

B.     Help eliminate unwanted sign calls from neighbors and unqualified buyers

C.     Should not be used as deals fail

D.    Should be used only with the permission of the seller after consideration of the merits and disadvantages

10. Sellers use the internet to do all of the following EXCEPT:

A.    Determine the value of their home through valuation sites

B.     Review websites in screening potential listing companies

C.     Check out the competition

D.    Prepare and submit the real estate contract

11. The MLS entry should be:

A.    Carefully crafted and complete with the best and most complete photos possible

B.     Entered as soon as possible, even if photos are not available yet

C.     Timed to hit the market before the weekend

D.    Hyped with catch phrases like “won’t last” to induce a sense of urgency

12. Are open houses necessary in a hot market?

A.    They are still an effective marketing method of exposure if approved by the seller

B.     No, but they are a good way to capture potential buyers for clients

C.     They are no longer safe for licensees

D.    Depends – The seller should have the option of input into the marketing plan

13. What has greatly contributed to new discount brokerage businesses?

A.    Foreclosures

B.     Buyers who are unable to obtain mortgage loans

C.     Homes going under contract quickly

D.    High priced agents who are unsuccessful in obtaining buyers

14. High quality and expensive brochures:

A.    Are needed only for high-end homes in the hot market

B.     Are a waste of time and money as the home will go under contract before they can be printed

C.     Can be produced quickly and should not be overlooked as a valid marketing tool

D.    Should be a stock format and quickly and cheaply produced

15. What do you tell a seller who needs to buy another home in a hot sellers’ market?

A.    Consider moving out now to give buyers the maximum options for moving

B.     Suggest a contingency for the seller securing a replacement home when an offer is received

C.     Suggest looking for replacement housing, including temporary housing and storage, in order to take advantage of the best offer

D.    Help the seller find a new home before putting theirs on the market

16. Are real estate agent professional designations important?

A.    Not really, as 75% of all real estate agents have at least one designation

B.     The public is not even aware of them

C.     They demonstrate that the real estate agent has taken additional, specialized real estate training, which helps to set that agent apart

D.    In a hot sellers’ market, the seller only wants exposure, not expertise

17.  Course correction should be considered when:

A.    You have a lot of showings but not offers

B.     Deals keep falling through because of financing

C.     School is back in session

D.    An election results in a new administration

18. What should a licensee NOT do for an open house?

A.    Provide access inspection reports or appraisals

B.     Put out refreshments

C.     Use air fresheners

D.    Use balloons

19. If the seller’s home is not going to show well because of clutter and cleanliness:

A.    The licensee should be honest and open about the benefits of de-cluttering and cleaning

B.     Grin and bear it as you don’t want to offend the seller in your listing presentation

C.     Let the feedback provide the incentive to remedy the issues

D.    Suggest a reduced price

20. Examples of social media include all of the following EXCEPT:

A.    Facebook

B.     Pinterest

C.     YouTube

D.    Turbo Tax

21. Are sellers concerned about loyalty or exclusivity?

A.    No – sellers are concerned about the bottom line only

B.     If fully informed, the seller may not object to the licensee representing both parties

C.     The listing agent should never try to represent both parties as it breaches fiduciary responsibility

D.    The seller has no choice if the buyer requests dual/transaction representation

“Ethics and Business Practices” Class Chapter 3 quiz questions with no answers.
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1. How does the reputation of the buyer’s agent influence contract acceptance?

A.    A bad experience or reputation can influence the listing agent’s willingness to promote acceptance of a perfectly good offer

B.     Aggressive brokers have an advantage as the listing broker and seller know that the transaction will be handled quickly

C.     The seller doesn’t care about the buyer’s agent and will look exclusively at the proposal

D.    The listing broker cannot mention previous bad experiences with the buyer’s agent under MLS rules

2. Should the licensee “hand off” repeatedly unsuccessful buyer clients?

A.    Yes – a referral fee is better than nothing

B.     Don’t worry, the agent will be fired anyway

C.     No – too much time is already invested and a deal must be struck sometime

D.    If the licensee is competent, communicative, and has established a good relationship with the buyer, there is no need to switch, unless of course the buyer makes that call

3. Which is NOT a factor that can help offset the advantage of a cash offer over a loan contingent offer?

A.    Appraisal contingency waiver

B.     Inspection waiver

C.     Dates more attractive to the seller

D.    Earnest money promissory note

4. Should an offer include a “story”?

A.    If the buyer wishes to communicate directly to the seller in their own format in this manner to plead their case

B.     No – it only muddies the water and causes the offer to be burdened and therefore less likely to be considered

C.     Yes – a standard cover letter should be prepared by the agent to accompany each offer

D.    No – the only factors a seller cares about are financial

5. When showing properties:

A.    Stay on track and don’t waste time on homes that don’t appeal to the buyer

B.     Limit showing time to 15 minutes each

C.     More is better

D.    Encourage buyers to take pictures

6. What is NOT a necessary tool of a successful flipper?

A.    Market savvy

B.     Ability and temperament to take risks

C.     Financial capability

D.    Government connections

7. A “story” that might be of influence on a seller should NOT look like this:

A.    I grew up in this neighborhood and would love to return to raise my children here

B.     I am a new teacher at the high school in the neighborhood and would love to live this close to work and amongst the children I will be teaching

C.     We have missed out on the last 15 offers we made and are absolutely desperate to buy something, anything

D.    We have always admired your front garden and commented on how well your home is maintained, just the way we would keep it

8. Contract software and electronic signatures:

A.    Can reduce the effort needed to make offers and enhance chances for success

B.     Don’t change anything as far as the buyer is concerned

C.     Aren’t worth the extra investment needed

D.    Are approved in all states

9. Should sellers’ agents reveal the competing bids on their listings?

A.    It is inappropriate for the selling agent to ask

B.     That would be up to the seller to authorize, but should be encouraged

C.     Listing agents should never reveal their cards

D.    Local MLS regulations govern this in rules and regulations

10. Should buyers be encouraged to bid over the price supported by comps?

A.    No – there will always be appraisal repercussions

B.     Only if the buyer is willing to waive the appraisal contingency

C.     If buyer and agent are comfortable with and believe that mitigating circumstances support a higher price and the contract contingencies are acceptable to the buyer

D.    Yes, it may be the only way to secure a desirable home

11. Can the licensee avoid contract rejection in a hot sellers’ market?

A.    Probably not – the key is to move on and learn lessons

B.     Yes – always insist on an escalation clause

C.     Yes – if buyer expectations are lowered and lower-priced homes needing work are bid on

D.    Yes – with pre-negotiation with the seller’s agent

12. Hesitation in making offers:

A.    Is prudent; always recommend that the buyer sleep on the decision

B.     Will let the seller know that the buyer is not desperate

C.     If the buyer is prepared and knowledgeable, is not necessary if the home seems right

D.    Will usually mean that the licensee is not pushing hard enough

13. Technology in prospecting is:

A.    Greatly improved and the best tool an agent has to keep up with the market

B.     Available to buyers directly and thus reduces the time that needs to be spent prospecting

C.     Not sophisticated enough to replace the old techniques

D.    Only available at a great investment into hardware

14.  According to a Trulia study, in a hot sellers’ market, what are the most common mistakes buyers make?

A.    Insulting the seller by offering less than the sales price

B.     Paying too large of an earnest deposit

C.     Acting too quickly

D.    Acting out of desperation

15. Working with portfolio investors:

A.    Should be limited to firms that also offer property management

B.     Should be left to commercial brokers

C.     Should be undertaken only if the licensee also owns rental properties

D.    Requires a high degree of skill and ingenuity

16. What are two types of investors in residential real estate?

A.    Fix and flippers and portfolio investors

B.     Owner occupants and renters

C.     Government users and institutional

D.    Land speculators and farmers

17. What is NOT a necessary tool of a successful flipper?

A.    Market savvy

B.     Ability and temperament to take risks

C.     Financial capability

D.    Government connections

18. In a hot sellers’ market, the licensee should set up MLS search parameters to:

A.    Stick to specific and narrow parameters specified by the buyer in order to stay focused only on properties truly meeting their goals

B.     Keep an open mind and include overlapping areas and expanded or contracted requirements so as to provide the most number of prospects to consider

C.     Encourage buyers to stay off the Internet

D.    Contact buyers on a 24/7 basis with new prospects for review

19. Buyers who are not completely ready and qualified to buy:

A.    Should be avoided

B.     Can always catch up after the contract is accepted

C.     Should be encouraged to do what is necessary to put themselves in a position to buy

D.    Should be pestered

20. Why is it a good idea to team up with an investor?

A.    They require less work as they tend to be more sophisticated

B.     You should not, as they will not be loyal and will often go with the listing company to save money

C.     You can develop skills and resources to make you more valuable

D.    You can learn techniques to better compete with them on future deals

21. How can a variable commission affect the chances for contract acceptance?

A.    The listing broker cannot charge a commission if representing the buyer in any capacity

B.     Licensees will be hesitant to show properties with variable commissions and there will be less competition

C.     A buyer competing with an in-house sale with a variable commission will be at a disadvantage

D.    Variable commissions are not allowed by MLS

“Ethics and Business Practices” Class Chapter 4 quiz question with no answers.
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1. Although the items included in Pathways to Professionalism may seem elementary, these simple courtesies are often overlooked. Neglecting any of them can cause which of the following?

A.    Ill will

B.     Ruined reputations

C.     Failed transactions

D.    All of the above

2. What happens if the Grievance Committee finds that there is a potential ethics violation and that the complaint has been appropriately filed?

A.    The complaint is forwarded to the local Association.

B.     The complaint is forwarded to the district attorney.

C.     The complaint is forwarded to a hearing panel of the Professional Standards Committee.

D.    None of the above.

3. What is the purpose of the Pathways to Professionalism document?

A.    To provide additional compulsory ethical requirements for Realtors.

B.     A list of professional courtesies to use on a voluntary basis.

C.     A list of things not to do in your real estate practice.

D.    All of the above.

4. An ethics complaint can also be considered what type of complaint?

A.    A monetary complaint

B.     An arbitration request

C.     A conduct complaint

D.    None of the above

5. The obligation of the local or state Association of Realtors includes which of the following?

A.    Addressing licensing violations.

B.     Providing mediation services and conducting arbitration hearings.

C.     Determining whether the law has been violated.

D.    All of the above.

6. Which of the following items listed in Pathways to Professionalism would be considered to belong under “Respect for Peers?”

A.    Respond to other agents’ calls, faxes, and emails promptly and courteously.

B.     Never allow unaccompanied access to property without permission.

C.     When showing property, keep all members of the group together.

D.    All of the above.

7. Who first reviews the request for arbitration?

A.    NAR

B.     The President of the Association

C.     The Grievance Committee

D.    The Professional Standards Committee

8. What happens if the Grievance Committee finds that there is a basis for arbitration?

A.    The case moves forward to the Professional Standards Committee.

B.     The case is referred to the District Attorney.

C.     The appropriate penalties are determined.

D.    None of the above.

9. Which of the following statements are TRUE with regard to mediation?

A.    Mediation is a voluntary process.

B.     Every Association must provide mediation services to the members.

C.     Many disputes can be resolved through mediation before ever going to arbitration or litigation.

D.    All of the above.

10. For a dispute to qualify for required arbitration, which of the following conditions must be met?

A.    It must be a contractual dispute or a non-contractual dispute as specified in Standard of Practice 17-4.

B.     It must be between REALTORS associated with different firms.

C.     It must be a real estate related dispute.

D.    All of the above.

11. Who may file an ethics complaint with NAR?

A.    Only another REALTOR may file an ethics complaint.

B.     Anyone may file an ethics complaint.

C.     Only a licensed broker may file an ethics complaint.

D.    None of the above.

12. Arbitration refers to what type of claim?

A.    A conduct claim.

B.     A money claim.

C.     A license violation claim.

D.    None of the above.

13. Which of the following would be a type of authorized discipline that may be issued by NAR in the case of an ethics violation?

A.    License revocation.

B.     Letter of Warning or Letter of Reprimand.

C.     Fine of $30,000.

D.    All of the above.

14.  Which category does the Golden Rule fit under in Pathways to Professionalism?

A.    Respect for the Public

B.     Respect for Peers

C.     Respect for Property

D.    All of the above.

15. The list of professional courtesies in Pathways to Professionalism may be supplemented by which of the following?

A.    Additional laws and regulations.

B.     Local custom and practice.

C.     Additional Ethics Code requirements.

D.    All of the above.

16. Which of the following would be considered items that need to be included in a due process hearing?

A.    Advance notification of the nature of the complaint.

B.     Adequate time to prepare a defense.

C.     The right to present witnesses, testimony, and evidence.

D.    All of the above.

17. Which of the following items listed in Pathways to Professionalism would NOT be considered to belong under “Respect for Property?”

A.    Leave your business card if not prohibited by local rules.

B.     Never criticize the property in the presence of the occupant.

C.     Inform occupants that you are leaving after showings.

D.    None of the above belong under “Respect for Property.”

18. What happens if the Grievance Committee finds there is no basis for arbitration?

A.    The case moves forward to the Professional Standards Committee.

B.     The case is dismissed.

C.     The case is referred to the District Attorney.

D.    None of the above.

19. The preponderance of evidence is defined as:

A.    Less than Likely

B.     Significantly less than likely

C.     More like than not

D.    None of the answers

20. In order for a dispute to qualify for arbitration what type of dispute must it be?

A.    A contractual dispute or a non-contractual dispute as specified in Standard of Practice 17-4.

B.     A money dispute.

C.     A dispute between Realtors in the same firm.

D.    None of the above.

21.  The National Association of REALTORS (NAR) is responsible for which of the following activities:

A.    Creating and amending the Code of Ethics.

B.     Enforcement of the Code of Ethics.

C.     Enforcement of licensing violations.

D.    All of the above.

“Ethics and Business Practices” Class Chapter 5 quiz questions with no answers.
Answers will be revealed with proper subscription in “ANSWER” pages

Tip: to find a certain word or key term,  press at the same time, the buttons:

( Ctrl and F ) on Windows computers

(Command and F ) on Mac computer

to bring up the in-page search box

1. What is a measure that can be taken to make a website ADA compliant

A.    Add text descriptions to pictures and graphics

B.     Print descriptions using braille

C.     It is not necessary to make websites ADA compliant

D.    Use Large Fonts on the website

2. Which of the following CANNOT be included in a real Estate Team or Group name?

A.    Team

B.     Associates

C.     Partnership

D.    Both B and C

3.  What is the difference between a Licensee and a REALTOR?

A.    Only REALTORS need to abide by a Code of Ethics.

B.     There is no difference between a Licensee and a REALTOR

C.     Unless a licensee joins the National Association of REALTORS through affiliation with a local association, they are not a REALTOR.

D.    All licenses become REALTORS after they successfully complete their post license course

4. Do ADA reasonable accommodation regulations apply to Short term rentals?

A.    They do not apply if the rental is less than a week

B.     They may apply if Florida Statutes 509 is not applicable

C.     All rentals are subject to ADA standards

D.    Only VRBO rentals need to comply

5. Which of the following is recognized as an electronic signature?

A.    Personal cell phone ringtone

B.     An electronic sound, symbol or process

C.     A text on a cell phone

D.    Electronic Signatures are not legal

6. What laws would a broker be violating by failing to display a Fair Housing Poster?

A.    ADA

B.     Fair Housing

C.     FREC

D.    DRE

7. What does the acronym UETA stand for?

A.    Unidentified Extra-Terrestrial Attacks

B.     Unilateral Economic Trade Agreement

C.     Uniform Electronic Transmissions Act

D.    Unauthorized Electronic Transmission Act

8. What is the best description of the Golden Rule?

A.    “Do as you would be done by”

B.     The best investment for any portfolio is Gold

C.     Your broker’s mission statement

D.    The most important goal that a licensee sets for themselves.

9. Who usually pays for reasonable accommodation, the landlord or the tenant?

A.    The landlord

B.     The tenant

C.     They share the cost

D.    In many cases, these are handled by the tenants as part of their rental agreements.

10. Which of the following is a requirement for Internet ads?

A.    A link to the licensee’s Social Media pages

B.     The licensee’s e-mail address

C.     The licensee’s cell number

D.    The name of the brokerage firm

11. When was the DMCA law passed?

A.    There is no such law

B.     1998

C.     2002

D.    1943

12. What part of the Code of Ethics motivated all states to create real estate laws?

A.    Standard 3

B.     Standard 13

C.     Standard 18

D.    The Preamble to the Code.

13. Which Standard refers to the way you write or talk about licensees?

A.    Standard 1

B.     Standard 15

C.     Standard 16

D.    There is no Standard for this since licensees are not REALTORS

14 All of the following are measures to safeguard against wire fraud EXCEPT?

A.    Using unsecured free Wi-Fi access

B.     Build a standard warning about wire scams into your e-mail signature

C.     Discuss preferred methods of communication with your customer or client

D.    Inclusion of a section in the broker’s policy manual regarding wire fraud prevention

15. Which of the following can be used for electronic signing?

A.    DocuSign

B.     PowerPoint

C.     Pandora

D.    Minesweeper

16. All of the following are measures to safeguard against wire fraud EXCEPT?

A.    Using unsecured free Wi-Fi access

B.     Build a standard warning about wire scams into your e-mail signature

C.     Discuss preferred methods of communication with your customer or client

D.    Inclusion of a section in the broker’s policy manual regarding wire fraud prevention

“Ethics and Business Practices” Class Final EXAMPLE question with no answers.
Answers will be revealed with proper subscription in “ANSWER” pages

Tip: to find a certain word or key term,  press at the same time, the buttons:

( Ctrl and F ) on Windows computers

(Command and F ) on Mac computer

to bring up the in-page search box

1. John, A REALTOR, owns a property management business that recommends to his clients to manage their investment properties. Does he have to disclose his interest in the business he is recommending?

A.    No, as long as there are other options presented to the client.

B.     Yes, a REALTOR must disclose interest in any recommended business entity at the time of the recommendation.

C.     No, it doesn’t matter if he owns the property management business he is recommending.

D.    None of the above.

2. Who may advertise or claim to have sold a property?

A.    Anyone from the brokerage where the transaction occurred.

B.     Any MLS member.

C.     Only Realtors who participated in the transaction as the listing broker or cooperating broker.

D.    None of the above.

3. Which of the following statements is(are) true?

A.    A principle is emotional and can change.

B.     Principles are behaviors and actions.

C.     Ethics are behaviors and actions.

D.    All of the above

4. Which of the following would be an example of authorized discipline that may be issued by NAR when there is an ethics violation?

A.    Education requirements.

B.     Fine not to exceed $15,000.

C.     Probation for one year or less.

D.    All of the above.

5. You’re showing a home and the window coverings are closed. You open them to show the house. According to Pathways to Professionalism, what should you do before you leave?

A.    Close the window coverings to leave the house as you found it.

B.     Leave the window coverings open since it looks so much better that way.

C.     Call the broker to tell her that she needs to close the window coverings later.

D.    None of the above.

6. Business ethics apply to what aspect(s) of business conduct?

A.    Only in how a business treats their customers.

B.     Only in how a business treats their employees.

C.     All aspects of business conduct.

D.    None of the above.

7. Which of the following is NOT a Real Estate goal?

A.    I want to earn $50,000 per year

B.     I want to earn a professional designation.

C.     I want to buy a 2-seat sports car.

D.    I want 3 listings.

8. Which of the following items should be included in an opinion of value or price according to Standard of Practice 11-1?

A.    Identification of subject property.

B.     Date prepared.

C.     Defined value or price.

D.    All of the above.

9. Which Article prohibits making false or misleading statements about other real estate professionals?

A.    Article 10.

B.     Article 15.

C.     Article 3

D.    Article 7.

10. Who enforces the NAR Code of Ethics?

A.    NAR.

B.     The state licensing board.

C.     Either the local or state Association of Realtors.

D.    None of the above.

11. When may a REALTOR receive compensation from more than one party?

A.    Never, it’s illegal.

B.     Only if he/she has actually served both clients.

C.     When permitted by law and with full disclosure to all parties.

D.    When permitted by law, with full disclosure to all parties and the informed consent of his/her client.

12. Is holding a press conference to address ethical violation charges allowed?

A.    Yes, anyone can hold a press conference.

B.     No, a Realtor is not allowed to make any unauthorized disclosure of allegations developed in connection with an ethics hearing or appeal.

C.     Yes, as long as the Realtor has a lawyer present.

D.    None of the above.

13. Which of the following statements is FALSE with regard to ethics?

A.    Ethics are the principles of right and wrong an individual accepts.

B.     Ethics are the principles of right and wrong a social group accepts.

C.     Ethics are the principles or conditions that customarily govern.

D.    All of the above are true

14. If a dispute is between REALTORS in the same firm, which of the following statements is TRUE with regard to arbitration?

A.    Arbitration is required.

B.     Arbitration is voluntary.

C.     Arbitration is not sufficient.

D.    None of the above.

15. Claire is showing a home on a 90-degree afternoon and the air conditioning is off. Claire turns the air conditioning on to show the house. According to Pathways to Professionalism, what should Claire do before she leaves?

A.    Leave the air conditioning on since the home is much more comfortable that way.

B.     Turn the air conditioning off to leave the house as she found it.

C.     Call the broker to tell her that she needs to turn the air conditioning off later.

D.    None of the above.

16. What does the acronym UETA stand for?

A.    Unauthorized Electronic Transmission Act

B.     Unilateral Economic Trade Agreement

C.     Unidentified Extra-Terrestrial Attacks

D.    Uniform Electronic Transmissions Act

17. Which of the following items would be considered a violation of the requirement to not knowingly or recklessly make false or misleading statements about other real estate professionals?

A.    Filing a false or unfounded ethics complaint.

B.     Filing multiple ethics complaints for different transactions.

C.     Both A and B

D.    None of the above.

18. Who is responsible for providing mediation services and conducting arbitration hearings?

A.    NAR.

B.     Either the local or state Association of Realtors.

C.     Local law enforcement.

D.    None of the above.

19. In a money claim, the complaint is called what?

A.    Request for Arbitration.

B.     Request for Litigation.

C.     Request for Hearing.

D.    Request for Dismissal.

20. Which of the following may real estate agents give to their clients?

A.    Legal advice.

B.     POA authorization.

C.     Carte blanche.

D.    None of the above.

21. A Realtor’s client accepts one offer but wants him to keep marketing the property in case there’s a better offer forthcoming. Is this permitted?

A.    Yes, you can always accept the better offer and cancel the lesser offer.

B.     Yes, the client can do whatever they want.

C.     No, the Realtor is not obligated to continue to market the property after an offer has been accepted.

D.    None of the above.

22. Realtor James discovers that an unflattering article he republished from the original source about a competitor on his website is false. What is James required to do according to Article 15?

A.    Apologize publicly to the competitor.

B.     Nothing; the article is not his responsibility.

C.     Remove the article and any reference to it from his website.

D.    None of the above.

23. Which of the following statements is(are) TRUE with regard to the term “laws”?

A.    Laws are the principles or conditions that customarily govern.

B.     Laws are legal documents setting forth rules governing a particular kind of activity.

C.     Laws are a reference point against which other things can be evaluated.

D.    All of the above.

24. When mediating disputes, who assists the disputing parties to come to a mutually acceptable resolution?

A.    The President of the Association

B.     The lawyers for each of the parties

C.     A trained neutral party

D.    None of the above.

25. According to “Pathways to Professionalism,” what should a real estate agent do if he/she is running late or needs to cancel a scheduled showing?

A.    Nothing; people understand that schedules change.

B.     Call his/her broker.

C.     Call the listing agent and/or the seller to let them know his/her plans have changed.

D.    None of the above.

26. What is considered to be a general announcement to prospects describing a Realtor’s  services and the terms of his/her availability?

A.    A general telephone canvass in a given geographical area.

B.     A general mailing addressed to all prospects in a given geographical area.

C.     A general distribution addressed to all prospects in a given geographical area.

D.    All of the above.

27. Who determines which party is entitled to the disputed funds in a request for arbitration hearing?

A.    A federal judge

B.     The hearing panel of the Professional Standards Committee.

C.     NAR.

D.    None of the above.

28. What is the primary difference between ethics and standards?

A.    Ethics are a system of principles governing morality; standards are legal documents setting forth rules governing a particular kind of activity.

B.     Ethics are a system of principles governing morality; standards are a reference point against which other things can be evaluated.

C.     There is no difference; the terms are used interchangeably.

D.    None of the above.

29. What is a core element of the NAR Code of Ethics?

A.    Caveat emptor.

B.     Do No Harm.

C.     The Golden Rule.

D.    All of the above.

30. Who is responsible for determining whether there has been a violation of a law or a real estate regulation?

A.    NAR.

B.     Either the local or state Association of REALTOR

C.     Regulatory authorities or courts.

D.    None of the above.