“NAR May the Code Be With You” / “The Code of Ethics in Action Real-Life Applications” Class
Questions Only
(ANSWERS will be revealed with subscription)
1. REALTOR-ASSOCIATE® Sarah believes that REALTOR® Thomas from another brokerage sold a house to her client and that she was the procuring cause of the sale. Identify which statement regarding this situation is TRUE.
A. Sarah can take no action as Thomas is the principal broker at his agency; his title gives him seniority in this case.
B. Sarah may ask her REALTOR® principal to initiate litigation but Sarah may not initiate litigation on her own.
C. Sarah may ask her REALTOR® principal to request arbitration but Sarah may not request arbitration on her own.
D. Sarah’s client would have to request arbitration on her behalf; Sarah may not request arbitration on her own.
2 Which of the following committees is most like a grand jury?
A. Board of Directors
B. Grievance Committee
C. Professional Standards Committee
D. State Licensing Board of Directors
3 The last group at the local level to review an ethics complaint is the
A. Board of Directors.
B. General membership.
C. Grievance Committee.
D. Professional Standards Committee.
4. REALTOR® Brian has filed an ethics complaint against REALTOR® Clarence. Which of the following is correct?
A. REALTOR® Brian is the mediator.
B. REALTOR® Brian is the respondent.
C. REALTOR® Clarence is the complainant.
D. REALTOR® Clarence is the respondent.
5. REALTOR-ASSOCIATE® Olivia believes that REALTOR® Jon from another brokerage sold a house to her client and that she was the procuring cause of the sale. Identify which statement regarding this situation is TRUE.
A. Olivia can take no action since Jon is the principal broker at his agency; his title gives him seniority in this situation.
B. Olivia may ask her REALTOR® principal to initiate litigation but she may not initiate litigation on her own.
C. Olivia may ask her REALTOR® principal to request arbitration but she may not request arbitration on her own.
D. Olivia’s client would have to request arbitration on her behalf; she may not request arbitration on her own.
6. Identify which statement regarding complaint filing is TRUE.
A. A REALTOR® has to decide which is more important, behavior or money, and file just one complaint.
B. A REALTOR® may file both an ethics complaint and an arbitration request simultaneously over the same matter.
C. A REALTOR® may not file an ethics complaint at the same time she files a request for arbitration.
D. A REALTOR® may file a request for arbitration only after any ethics complaint about the same matter is resolved.
7. The two functions of the local REALTOR® Association’s Board of Directors, with respect to Code enforcement, are
A. attending the Grievance Committee meetings and the Professional Standards hearings.
B. determining if ethics complaints should go forward and holding the hearings.
C. hearing Professional Standards cases and ratifying the results.
D. ratifying the findings of the Professional Standards Hearing Panel and hearing appeals from either party.
8. A method of resolving a dispute in which the parties involved discuss the situation and resolve it themselves is called
A. arbitration.
B. litigation.
C. mediation.
D. mutual collaboration.
9. The National Association of REALTORS® Code of Ethics is
A. completely unlike state licensing laws.
B. like the United States Constitution and Bill of Rights, fairly immutable.
C. a living document that is revised annually.
D. required by state law to be followed by all licensees.
10. A request for arbitration could stem from
A. a monetary dispute between two licensees.
B. a monetary dispute between two REALTORS®.
C. unethical behavior between a REALTOR® and a consumer.
D. unethical behavior between two REALTORS®.
EXPLANTION: At least one party must be a REALTOR® in order to go through the arbitration process. Arbitration deals with monetary disputes only and could also be initiated by or made against a customer, client, or non-member broker.
11. Identify which statement regarding mediation is TRUE.
A. If the two parties go to mediation and do not resolve the dispute, they are no longer entitled to arbitration.
B. The local association of REALTORS® must offer mediation to both parties before an arbitration hearing is held.
C. Mediation is not a method of dispute resolution preferred by the National Association of REALTORS®.
D. An arbitration hearing is required before parties may attempt mediation.
12. Identify which statement regarding REALTORS® is TRUE.
A. In most states, a REALTOR® is not required to have a license to sell real estate.
B. A licensee must be a REALTOR® to sell real estate in most states.
C. Only those licensed as sales agents may become REALTORS®.
D. REALTOR® membership is voluntary but provides a distinction from other licensees.
13. Complaints about the behavior of a REALTOR® are
A. appeals complaints.
B. arbitration complaints.
C. ethics complaints.
D. license law complaints.
14. Which of the following Standards is considered a duty to other REALTORS®?
A. Article 1—Be honest
B. Article 3—Cooperate with other REALTORS®
C. Article 12—Be truthful in advertising
D. Article 17—Arbitrate disputes
15. Which of the following Standards is NOT considered a duty to the public?
A. Article 9—Put contracts in writing
B. Article 11—Provide the standard of professional service expected
C. Article 13—Do not practice law
D. Article 14—Arbitrate disputes
16. The broker in charge of an office, by ownership or designation as the managing broker, is called a(n)
A. ASSOCIATE-BROKER.
B. REALTOR® principal.
C. REALTOR-ASSOCIATE®.
D. REALTOR®.
17. The official interpretation of the NAR Code of Ethics is made by
A. each member’s conscience.
B. each state association of REALTORS®.
C. member associations, individually.
D. the National Association of REALTORS®.
18. The first committee at the local level to review an ethics complaint or a request for arbitration is the
A. Board of Directors.
B. Ethics Committee.
C. Grievance Committee.
D. Professional Standards Committee.
19. Being a REALTOR® means being included in the ____________ association(s).
A. local
B. state
C. national
D. local, state, and national
20. REALTOR® Loretta owns a large brokerage, which includes an in-house mortgage lender, an in-house title company, and a home warranty company. Identify which statement is true.
A. Loretta may insist that all buyers and sellers use the auxiliary services provided by her company.
B. Loretta may not market these auxiliary services to buyers or sellers using her company.
C. Loretta must disclose her interest to her clients and customers, including any financial benefit received.
D. Loretta needs to say nothing about these businesses or services; it is obvious she owns them.
21. A REALTOR® principal receives an offer on one of her listings. This offer is accepted, contingent upon the buyer obtaining financing and a satisfactory home inspection. If another brokerage wants to show the property, what is the listing broker’s responsibility?
A. disclose the existing accepted offer
B. disclose the existing offer only if the seller gives permission
C. maintain the confidentiality of the information
D. refuse to return calls of the agent involved so as not to have to decide
22. Which item is considered outside the scope of a real estate license, according to Article 2?
A. quality of title to the property
B. recorded deed restrictions
C. property taxes
D. zoning restrictions
23. REALTOR® Marty has a daughter who is interested in a property. Marty makes arrangements with the listing agent, REALTOR® Caroline, to show the property. Marty later writes a contract and a sale is made. At the closing table, Marty tells Caroline and the seller that the buyer is actually his daughter. Did Marty violate the Code?
A. No, the fact that his daughter was the buyer is inconsequential to the transaction.
B. No, Marty’s daughter and the seller were in mutual agreement with the stipulations of the sale.
C. Yes, Marty should have disclosed his relationship with all parties involved when an offer was made.
D. Yes, Marty should not have said anything to the other REALTOR® and the seller at the closing.
24. REALTOR® Marcy has listed Derek’s home, thus creating an agency relationship in which she owes fiduciary duties to Derek. Chad is a customer of Marcy’s. Which of the following duties does Marcy NOT owe to Chad?
A. accounting for any deposit monies she receives from him, which are put into a separate account
B. disclosing her relationship with Derek
C. notifying him of all known material facts
D. telling him the lowest price Derek will take for the house, which Derek told her in confidence
25. REALTOR® Jerry has exclusive employment contracts with buyer Stan and seller Tammy. Stan enters into an agreement with Tammy. Jerry discloses his compensation agreements to both parties and receives their consent. He has fulfilled the requirements of Article 7 by
A. disclosing his “true position.”
B. not accepting a commission or rebate without the client’s knowledge and consent.
C. providing disclosure and obtaining consent from both parties.
D. showing his interest in the property personally.
26. There are two separate brokerages. Licensees in both brokerages are REALTORS®. The buyer brokerage receives compensation from the listing brokerage and from the buyer at close of escrow. Is this a violation of the Code?
A. No. REALTORS® are entitled to collect some fees, which a non-member licensee is not.
B. No. As long as there was prior informed consent from both parties before the transaction was complete, this is not a violation.
C. Yes. When a REALTOR® only has a contract with a buyer; he is only permitted to collect a fee from the buyer.
D. Yes. REALTORS® are prohibited from receiving compensation from more than one party in a transaction.
27. With a dual agency relationship, which fiduciary duty does a client give up?
A. confidentiality
B. disclosure
C. reasonable care
D. undivided loyalty
28. REALTOR® Carlos has a listing. REALTOR® Jan calls Carlos to arrange for a showing. Carlos tells Jan that the property is not available for showing today but will be available in a week. That same day, Jan’s buyer client calls Carlos directly and asks for an appointment to see the property and Carlos provides the showing. Is this a violation of the Code?
A. No, because customers get special treatment over other REALTORS®.
B. No, because the selling agent can change his mind.
C. Yes, because REALTORS® have an agreement to cooperate.
D. Yes, because REALTORS® should not misrepresent the availability of access.
29. Howard walks through a home listed by Owen’s agency during an open house. Howard and Owen chat about the features of the house and Howard seems to be interested. The next day, Howard calls Owen and tells him that he would like to make an offer on the house. At this point, what kind of relationship do Howard and Owen have?
A. Howard is Owen’s client.
B. Howard is Owen’s customer.
C. Owen is Howard’s fiduciary.
D. Owen is Howard’s principal.
30. REALTOR® Frank holds an open house for a client on a rainy day and discovers a window leak. The seller had made no mention of it. What is Frank’s duty?
A. encourage the sellers to update the disclosure form and/or have the window repaired
B. lie to prospective buyers regarding the window’s condition
C. maintain the confidentiality of the information since the seller is his client
D. tell the sellers to disclose the leaks
31. REALTOR® Nathan has a website with extensive listing information. When a consumer wishes to obtain specific information about a listing, he is instructed to “click here.” The “click” actually is consent for the consumer to enter into an exclusive, year-long buyer agency agreement with Nathan but this is not apparent. Did Nathan violate the Code?
A. no, because Nathan is not responsible for how the website functions
B. yes, because the nature and the terms of the contract were not made clear
C. yes, because electronic contracts are not valid
D. no, because the user had the choice to “click” or not to “click”
32. A REALTOR® has the duty of loyalty to
A. his agency.
B. his client.
C. other REALTORS®.
D. all parties to a transaction.
33. According to the Code of Ethics, a REALTOR® owes the duty of confidentiality to
A. a buying customer in a transaction.
B. a client during and following the termination of the professional relationship between the client and the REALTOR®.
C. a client only during the professional relationship between the client and the REALTOR®.
D. all parties in a transaction, whether they are clients or customers.
34. Trisha wants to sell her house quickly because her new job in another city begins next month. She tells REALTOR® Ed, in confidence, to do whatever it takes to sell her house. Which of the following represents Ed’s fiduciary duty?
A. gain consent to advertise Tricia’s property as having an “anxious owner who wants an offer”
B. have his friend offer to buy the house at a lower price since Trisha must sell the house quickly
C. tell prospective buyers Trisha must sell quickly because Ed must follow all instructions of the client
D. weed out offers that seem unreasonable to keep Trisha from wasting her time
35. REALTOR® Maria advises that her buyer obtain and review a home inspection report on a house she is considering buying. This is an example of
A. dictatorial business.
B. disclosure of material facts.
C. obedience to the inspector.
D. unprofessional behavior.
36. REALTOR® Ann is furious when she discovers that REALTOR® Marge sold a listing to one of Ann’s clients. She files a request for arbitration and an ethics complaint. Which statement is correct?
A. Ann cannot file both an ethics complaint and an arbitration request at the same time.
B. Ann cannot file multiple complaints against Marge over this one event.
C. Ann does not have to cite her reasons for filing an ethics complaint against Marge.
D. Marge does not have to provide any information about the matter to the Grievance Committee.
37. When homeowners in a particular area are convinced that the ethnic or racial make-up of their neighborhood is changing, causing them to sell below market value, this is known as
A. bait and switch.
B. discrimination.
C. fraud.
D. panic selling.
38. Identify which of the following inducements is prohibited.
A. “Attend our First-Time Homebuyer Seminar and win a free TV!”
B. “Cancel your current listing contract and sign up with A-1 Realty for an all-expense paid weekend in Las Vegas!”
C. “Sign a six-month contract with Tim’s Realty and if we sell your home, you’ll get a free GrillMate gas grill.”
D. “Visit our website at www.tinytownrealestate.com for special offers!”
39. According to the Code of Ethics, who owns the listing agreements for a firm?
A. REALTOR-ASSOCIATES®
B. REALTOR® principal or the firm itself
C. REALTOR® principal and REALTOR-ASSOCIATES® jointly
D. REALTOR® who is the procuring cause of the sale
40. Identify which of these practices a REALTOR® is permitted to do.
A. complete a pre-printed contract
B. draft a purchase contract from scratch
C. express an opinion about the quality of title on a property
D. tell a client that a contract is valid, void, or voidable
41. Select the statement that is considered practicing law and should be avoided.
A. advising customers or clients on how to get a house “show ready”
B. drafting advertisements for general mailing
C. explaining to a customer why a contract can’t be enforced
D. expressing an opinion about a property
42. REALTOR® Erin has been selling and listing residential properties for about a year. Recently, Erin was the buyer’s agent for Jones, who purchased a new home. Jones owns a small auto dealership, which he wants to relocate closer to his new home. He needs to sell the commercial property and asked Erin if she would be the listing agent. What should Erin tell Jones?
A. “I have no experience selling commercial properties but I would be happy to take on the challenge.”
B. “I would like to sell your business property but first, I would have to take classes.”
C. “No, I have no experience selling commercial properties so it is illegal for me to do it.”
D. “Yes, I have tons of experience selling all types of properties! You’ve come to the right person.”
43. REALTOR® Joe discovers that REALTOR® Ed filed an ethics complaint against him and that REALTOR® Ralph will be a witness in the hearing. Joe tells Ralph that if he shows up at the hearing, he’ll wish he hadn’t! This is a violation of the Code because
A. Ed leaked information about who would appear at the hearing.
B. Ralph should not talk to Joe until after the hearing.
C. Joe’s statement could be considered a threat.
D. Joe should not talk to Ralph until after the hearing.
44. In an advertisement for a four-bedroom home, which of the following statements could be considered discriminatory?
A. beautiful home in an exclusive neighborhood
B. comfortable home near the community recreation center
C. large, four-bedroom on a quiet cul-de-sac lot
D. excellent location; walk to the bus stop
45. Advertisements on the Internet require
A. an image of the REALTOR®’s license.
B. a minimum number of listings.
C. the name of the REALTOR®’s firm.
D. an offer or inducement.
46. REALTOR® Scott has several websites, each directed at various niches, such as first-time buyers, seniors, etc. However, listings are currently thin in his market. To keep the websites from looking skimpy, Scott keeps several sold or expired listings on his site that appear to be available. Scott is in violation of the Code because
A. it is prohibited to target solicitations to first-time buyers because of their lack of experience.
B. REALTORS® are not permitted to advertise on more than one site.
C. websites must be maintained and updated frequently.
D. websites must maintain a minimum number of listings at all times so the site should never look skimpy.
47. When preparing an opinion of value, REALTORS® are required to
A. have the opinion verified by an appraiser.
B. have two brokers sign off on it.
C. only look at the MLS.
D. provide the basis for their opinion.
48. A young couple is looking for a new house. They ask their buying agent, REALTOR® Larry, about the racial composition of a neighborhood they are considering. The couple wants to ensure their children are raised in a diverse area. How should Larry respond to the question?
A. “The Catholic Church on the corner indicates that the area is predominately Italian-Catholic.”
B. “The Federal Fair Housing Law prohibits me from discussing the racial composition of the neighborhood.”
C. “The neighborhood looks predominately white but there are a few Latinos who live a couple of blocks over.”
D. “If you go hang out at the Corner Bar for one evening, that will probably tell you everything you need to know.”
49. REALTOR® Kim has a listing on a property and REALTOR® John, a sales associate for REALTOR® Millie, makes an appointment to show it. REALTOR® Kim can
A. instruct her seller to pay a bonus commission directly to REALTOR® John.
B. offer to directly pay REALTOR® John a bonus commission if he produces a contract at full price.
C. offer to pay a bonus commission to REALTOR® Millie if REALTOR® John sells the house.
D. offer to pay REALTOR® John directly at the time of closing.
50. REALTOR® Nan comes into the office and finds prospect Bob talking with her colleague, REALTOR® Dana. After Bob leaves, Nan says to Dana, “That is my client!” This statement is true if
A. Nan did not sign a contract with Bob.
B. Nan has an exclusive, current, valid agreement with Bob.
C. Nan sold a house to Bob last year.
D. Nan worked with Bob first.
51. Several buyers enter REALTOR® Pete’s office and ask about one of the company’s listings. Pete learns that the buyers have an exclusive agreement that expires in two months with REALTOR® Ryan, employed by a competitive brokerage. Pete tells them it is no problem and asks them to sign an exclusive buyer contract with his company and he will show them the listing. REALTOR® Pete
A. has no business concerning himself with the other REALTOR®’s contract; it is none of his business.
B. knows a way around the problem.
C. is simply doing his job by selling the company’s listings.
D. has not obtained informed consent from the buyers to be obligated to pay two commissions.
52. Identify the scenario below where it would NOT be appropriate for a buyer’s agent to talk to the seller directly concerning price, terms, or conditions.
A. The buyer’s agent and the seller’s agent work for the same company as designated agents.
B. The buyer’s agent is also the seller’s agent, acting as a disclosed dual agent.
C. The seller’s agent has authorized the buyer’s agent to speak to the seller.
D. The seller initiates direct contact with the buyer’s agent.
53. REALTOR® Frank has been trying for several months to sell the Johnsons’ home. When Frank contacts Mr. Johnson to renew the listing, Mr. Johnson informs him that he just signed a contract with REALTOR® Jim that becomes effective one day after the current listing expires. REALTOR® Jim violated the code
A. by establishing a new contract with Mr. Johnson before the previous one had expired.
B. by not informing Frank that he had signed a contract with Mr. Johnson
C. just by talking to Mr. Johnson before his listing contract expired.
D. only if he initiated the contact with Mr. Johnson.
54. REALTOR® Paula reads the personal statistics posted on REALTOR® Neil’s Internet blog and posts this comment on his blog: “Well, Mr. Smarty-Pants, we could all have the same stats you do if we consistently underpriced every listing we sold. You are simply a bottom feeder!” Identify which statement is true.
A. Neil is in violation of Article 15 for not blogging about REALTOR® Paula’s successes.
B. Neil is in violation of SOP 1-3 for misleading sellers about market value.
C. Paula is in violation of Article 15 for posting misleading statements.
D. Paula is simply expressing her personal opinion, which she is entitled to do.
55. REALTOR® Lisa, a property manager, researchs county records to determine the owners of multi-unit buildings. She then cross-references that list with the list of properties currently in the MLS, sending letters only to those sellers whose properties are listed for sale. Her letter offers both her property management services and her brokerage services. Did Lisa violate the Code?
A. No, because the properties she found in the MLS have been on the market more than six months.
B. Yes, because she is targeting properties already listed and offering brokerage services.
C. Yes, because REALTORS® are not permitted to use county records for such purposes.
D. No, because she is a property manager and the listing agent does not offer that service.
56. REALTOR® Lynn is very well connected to REALTORS® all over the country. One day, she is showing REALTOR® Terry’s listing. The seller tells REALTOR® Lynn that she is relocating to Hawaii. Lynn then tells the seller she could recommend a good REALTOR® there. Lynn’s action is
A. not a violation of the Code as it is helpful courtesy offered to the seller.
B. not a violation of the Code as REALTOR® Terry doesn’t know any agents in Hawaii.
C. a violation of Code as Lynn cannot attempt to obtain future business with Terry’s client at this point.
D. a violation of the Code as Lynn must first have Terry’s permission before making a referral.
57. Broker REALTOR® Miriam employs REALTOR® Tom. Tom is not meeting her expectations, so she terminates the employment relationship. The next day, Miriam gets a phone call from seller Katie who asks to be released from her exclusive agreement so that she can re-list her property with REALTOR® Tom, who is now working for REALTOR® Ethan. It appears that REALTOR® Tom may have
A. chosen to work hard for his new broker Ethan, which is not a violation of the Code.
B. extended an offer of cooperation to another broker, which is not a violation of the Code.
C. induced Miriam’s client to cancel her agreement, which is a violation of the Code.
D. made a referral without Miriam’s consent, which is a violation of the Code.
58. REALTOR® Jane notices a home in her market area listed with REALTOR® Linda’s name on it. Jane could not find the property listed in the MLS. Jane calls Linda to find out if the property is exclusively listed, and, if so, when it terminates. Linda refuses to answer Jane’s questions. To get the answers she needs, Jane may
A. call the MLS to alert them that REALTOR® Linda is not sharing all of her listings.
B. call the sellers directly to confirm the nature and expiration date of any listing agreement they have.
C. call the sellers directly only if she has a buyer client who wishes to see the house.
D. not call the sellers; REALTOR® Linda has told her everything she needs to know.
59. While REALTOR® Mary is putting a sign on a property, a couple pulls up in a car and asks if they can see the property. It is Mary’s listing and she has the key; the sellers are not home, but told her to show it anytime. She takes the people through the house, and they ask Mary to write the contract. REALTOR® Mary’s next step should be to
A. ask the buyers if they are exclusively represented by another REALTOR®.
B. contact the sellers and write the contract.
C. prepare a CMA, which demonstrates the accuracy of the price.
D. set up an appointment with the title company.
60. REALTOR® John, who is also an appraiser, periodically sends letters to past clients asking if they need a current valuation of their property. He sends letters only to those homeowners whose properties he has previously appraised. This is
A. not a violation of Code, because it targets listed properties.
B. not a violation of Code, even if some of the recipients have their homes listed for sale.
C. a violation of Code, because it is not a general announcement.
D. a violation of Code, because some of those properties might be listed for sale.
61. When Todd finished his degree in marketing, he started a career as a REALTOR®. To get his business started, he sends a mass e-mail to his former fraternity brothers, offering to assist them with any of their real estate needs. Todd’s actions are considered
A. ethical, because of the special rules for fraternity brothers.
B. ethical, because this is considered a general announcement.
C. unethical, because solicitation by any type of electronic transmission is a violation of the Code.
D. unethical, because some of the people who get the e-mail may already be in an exclusive listing agreement.
62. REALTOR® Kevin, representing buyer Susan, shows one of REALTOR® Craig’s listings. Susan wants to make an offer. While reviewing the MLS data sheet, Kevin notices that the cooperative broker compensation offered in the MLS listing is less than the fee he negotiated with Susan with his buyer broker agreement. Kevin must
A. advise Susan of the commission differential.
B. advise Susan of the commission differential and renegotiate his fee.
C. ask REALTOR® Craig to increase the commission.
D. talk Susan out of buying the house.
63. REALTOR® Jon has an open house, which buyer Halie attends. Buyer Halie refers to other houses she has looked at with REALTOR® Grant. Jon does not ask Halie if she has an exclusive agreement with Grant; instead, he tells her if she wants to buy the house, she needs to enter into an exclusive agreement with him. Which statement is true?
A. Jon did not make a reasonable effort to determine if Halie has an exclusive agreement.
B. Jon did not represent his seller as required.
C. Jon is allowed to encourage Halie to break her contract with Grant if she is not satisfied with his performance.
D. Jon is simply being aggressive, which is permissible.
64. REALTOR® Smitty has an exclusive listing on seller Ted’s house. REALTOR® Brad shows the listing, writes up an offer, and then calls Smitty to ask him when he would like to present the offer to his client. Smitty tells Brad to call Ted and present it himself. Is Brad violating the Code if he calls Ted?
A. No, because of the right of free speech, Brad can call Ted any time he wants regarding any offers.
B. No, because permission was granted by Ted’s representing agent.
C. Yes, because Ted did not give his consent to talk to Brad.
D. Yes, because Ted did not initiate the conversation.
65. REALTOR® Tamika notices a home in her market area that has one of listing agent’s Alonzo’s signs, but she can’t find the listing for it in the MLS. Tamika calls Alonzo to find out if the property is exclusively listed and, if so, when it expires. Has Tamika violated the Code?
A. No, Alonzo is required to post all listings in the MLS.
B. No, Tamika is permitted to call Alonzo to get the information she needs.
C. Yes, Tamika should have just asked the owners, who were in the driveway when she was there.
D. Yes, Tamika violated the Code because contacting the listing agent is never allowable.
66. REALTOR® Dennis is running an open house when prospects Bob and Betty Byers arrive. Dennis asks the Byers if they have someone helping them find a home. The Byers reply that REALTOR® Sam has taken them to several homes, but they aren’t sure if they have an exclusive agreement with Sam. What is the best action for Dennis to take?
A. contact Sam and ask him the nature and terms of any agreement he has with the Byers
B. sign the Byers to an exclusive buyer agency agreement
C. tell the Byers they cannot talk to Sam
D. tell the Byers to call Sam to find out the nature and terms of any agreement they have with Sam
67. REALTOR® Patty has an appointment to show a listing of REALTOR® Katie’s. Patty prepares a CMA prior to the appointment, and then shows the property to her prospect, buyer Larry. Before leaving, REALTOR® Patty takes the seller aside and tells her the property won’t sell because it is overpriced and shows the seller her comps. Did Patty’s actions violate the Code?
A. No, because her client, Larry, has no interest in the property.
B. No, because REALTOR® Katie is obviously clueless about how to price a property.
C. No, but only if she doesn’t solicit the listing at the same time.
D. Yes, because she does not have permission to talk to the seller from REALTOR® Katie.
68. Broker Judy has been working actively with Buyer John for several months. Buyer John mentions at his place of employment that he is looking for a house with Broker Judy. His boss is Bud, whose wife is Broker Nan. Bud “suggests strongly” to Buyer John that he would be better served by buying a house from Broker Nan. The next day, Broker Nan calls Buyer John. This would most likely be viewed as
A. abandonment of John by Broker Judy.
B. aggressive, but ethical marketing efforts.
C. estrangement of John by Broker Nan.
D. an intrusion by Broker Nan into an existing relationship.
69. Broker Anne files an arbitration request against her client, Buyer Bill. Buyer Bill acknowledges that he signed and understood an exclusive buyer agency contract with Broker Anne that provided that he would pay her a commission if he purchased a property within the time indicated by the contract, which he did. This fact favors
A. Buyer Bill.
B. Broker Anne.
C. both Buyer Bill and Broker Anne.
D. neither Buyer Bill nor Broker Anne.
70. Which of the following does NOT indicate a buyer trying to freeze out a broker?
A. The buyer asked the broker to negotiate on his behalf and write a purchase contract.
B. The buyer entered into a contract that stipulated that the broker had not been involved in the transaction.
C. The buyer refused to negotiate with the broker.
D. The buyer sought another broker in order to get a lower price.
71. Broker Paul introduces tenant Rhonda to a property. Several months go by without contact between Paul and Rhonda, and then Broker Steve introduces the property to Rhonda again. She leases it. Broker Paul files arbitration against Steve, claiming he introduced the property to Rhonda. The fact that the introduction occurred many months ago does NOT
A. favor either party.
B. negate that the introduction strongly favors Paul.
C. strongly favor Paul.
D. weigh into consideration; Paul introduced the property and is the procuring cause.
72. Broker Jim introduces buyer Ken to a property and keeps in touch with him. Later, Ken meets Broker Brenda at a party and is persuaded to let her represent him in the purchase of the property. In an arbitration dispute, the fact that Jim initially introduced Ken to the property favors
A. broker Brenda.
B. broker Jim.
C. both Brenda and Jim.
D. neither Brenda nor Jim.
73. REALTOR® Devon traveled to another state where he bought a property for himself. He identified himself as a REALTOR® but he acted solely as a principal in the transaction. After the closing, REALTOR® Edward, who represented the seller in the transaction, claimed that Devon owed him a buyer’s agent fee, and sought arbitration. REALTOR® Devon
A. cannot arbitrate if he is a principal in the transaction.
B. is obligated to arbitrate only if he has a specific written agreement to arbitrate.
C. may not arbitrate as he does not belong to the local association.
D. must arbitrate as he and Edward are both REALTORS®.
74. Broker Paul introduces tenant Elizabeth to a property. Subsequently, he calls her several times a week, sends her e-mails, and mails a packet of additional information. Elizabeth leases the property from Broker Jane. Broker Paul’s efforts favor
A. Jane.
B. Paul.
C. both Jane and Paul.
D. neither Jane nor Paul.
75. Buyer Kathy contacts Seller Dean about buying his property. She and Dean enter into an agreement of sale. When Kathy applies for a mortgage, the lender turns her down because she doesn’t have a sufficient down payment. Subsequently, Dean lists the property with Broker Mike. After Mike’s listing contract expires, Dean sells the property to Kathy. A key fact is
A. Broker Mike had the property listed most recently.
B. Broker Mike introduced Kathy to the property.
C. Kathy and Dean had previous dealings with each other.
D. Seller Dean was not free to sell the property on his own.
76. REALTOR® Dee shows a property listed by REALTOR® Nelson. Subsequently, REALTOR® Nelson sells the property to the buyer REALTOR® Dee introduced to the property. REALTOR® Dee files an arbitration request and is able to prove she is the procuring cause of the sale. REALTOR® Nelson owes REALTOR® Dee
A. a 20% referral fee.
B. the co-operating commission originally offered by Nelson.
C. half of the commission REALTOR® Nelson actually received from the seller, after he negotiated with the seller to reduce his commission.
D. the total commission paid to REALTOR® Nelson by the seller.
77. Broker Joann, buyer’s agent, is seeking arbitration against Broker Millie, seller’s agent. Broker Millie presents as evidence the listing as it appeared in the MLS, with no compensation offered to a buyer’s agent, only to sub-agents. Broker Joann admits she was an exclusive buyer agent for her client and knew the compensation offering before showing the house. This fact favors
A. Broker Joann.
B. Broker Millie.
C. both Broker Joann and Broker Millie.
D. neither Broker Joann nor Broker Millie.
78. Buyer Travis owns several corporations and has Broker Salvatore show him a property owned by Keith. Buyer Travis introduces himself as the CEO of Big City Enterprises. Later, a sales contract is entered into directly between Seller Keith and High-Rise Corporation. A factor that is indicative of bad faith and in Salvatore’s favor is whether
A. another broker showed the property to Travis.
B. Buyer Travis does not own Big City Enterprises and High-Rise Corporation.
C. Buyer Travis is the owner of Big City Enterprises and High-Rise Corporation.
D. Seller Keith had no knowledge of Salvatore’s efforts with Travis.
79. Broker Roger has an open house on a property and has a register for attendees to sign. Broker Paul later brings a sales agreement on the property from one of the attendees of the open house. The seller accepts the offer. Broker Roger files arbitration against Broker Paul, claiming procuring cause because he introduced the property to the buyer. This introduction is
A. apparently limited to the open house and does not favor Roger.
B. the first step in procuring cause and strongly favors Roger.
C. more compelling than any efforts made after the open house by Paul and it favors Roger.
D. the same as if Roger had found the buyer independently and shown the property by appointment; it favors Roger.
80. Broker Ken showed a property to Buyer Lori. Lori subsequently meets Broker Amy, whose son plays ball with Lori’s son. Broker Amy discovers that Buyer Lori has looked at a property with Ken and tells Lori that she is also in the real estate business and she can help her buy the property. The hearing panel will
A. consider how and when Amy entered the transaction.
B. not consider how and when Amy entered the transaction.
C. only consider who made the initial introduction to the property.
D. only consider who wrote the successful contract on the property.
81. Broker Nathan has a property listed for sale. Broker Katherine is aware of the listing as it is in the local MLS. The seller, Morgan, contacts Buyer Valerie independently and informs her that the property is for sale. The introduction of the property by Morgan favors
A. Katherine, as the selling broker
B. Nathan, as the listing broker.
C. both Nathan and Katherine.
D. neither Nathan nor Katherine.
82. Broker Steve has brought arbitration against Broker Deb. Broker Deb admits that she extended an offer of cooperation and compensation to Broker Steve. This particular fact favors
A. Broker Deb.
B. Broker Steve.
C. both Broker Deb and Broker Steve.
D. neither Broker Deb nor Broker Steve.
82. Broker Linda is at a wedding seated at a table with nine other guests. She mentions to all of them that she has just listed a home near the country club. Later, Ben, who was seated at the same table with Linda, buys the house from Broker Andrew. In an arbitration dispute, the fact that Linda mentioned the property is considered
A. an introduction and favors Andrew’s side.
B. an introduction and favors her side.
C. merely a mention and does not favor Broker Andrew.
D. merely a mention and does not favor Broker Linda.
83. REALTOR® Brianna is a buyer agent and sells Randy’s house. She stipulates that her client, Buyer Jack, will pay her fee. Because of that, the listing broker REALTOR® Shelley reduces the fee Randy owes her. Subsequently, REALTOR® Shelley claims that she represented Buyer Jack. If REALTOR® Shelley wishes to file an arbitration request, against whom does she file it?
A. Brianna
B. Jack
C. the principal
D. Randy
84. REALTOR® Brianna is a buyer agent and sells Randy’s house. She stipulates that her client, buyer Jack, will pay her fee. Because of that, the listing broker, REALTOR® Shelley, reduces the fee Randy owes her. Subsequently, REALTOR® Shelley claims that she represented buyer Jack. If REALTOR® Shelley wishes to file an arbitration request, against whom does she file it?
A. Randy
B. Jack
C. the principal
D. Brianna
85. REALTORS® seek arbitration over monetary disputes with another REALTOR® because
A. they have agreed in advance to arbitrate, not litigate.
B. real estate licensees may not litigate over commissions.
C. state law requires it.
D. mediation is not available.
86. REALTOR® Brian filed an ethics complaint against REALTOR® Clarence. Which of the following is correct?
A. REALTOR® Brian is the respondent.
B. REALTOR® Brian is the mediator.
C. REALTOR® Clarence is the complainant.
D. REALTOR® Clarence is the respondent.
87. REALTOR-ASSOCIATE® Olivia believes that REALTOR® Jon from another agency sold a house to her client and that she was the procuring cause of the sale. Identify which statement regarding this situation is TRUE.
A. Olivia can take no action since Jon is the principal broker at his agency; his title gives him seniority in this situation.
B. Olivia may ask her REALTOR® principal to initiate litigation but she may not initiate litigation on her own.
C. Olivia may ask her REALTOR® principal to request arbitration but she may not request arbitration on her own.
D. Olivia’s client would have to request arbitration on her behalf; she may not request arbitration on her own.
88. REALTOR© Betty is hosting an open house where she meets buyer Josie. Josie is in a contract with REALTOR© Bill, which is expiring in a week. Josie tells Betty she isn’t happy with the small number of showings Bill’s had on her house and she is thinking of finding a new REALTOR©. Josie asks Betty her opinion. Betty’s answer should be
A. “Call me in a week and I’ll tell you my opinion of Bill and what your next steps should be.”
B. “I know Bill, and he’s got a reputation for only working hard on his million-dollar listings. I’d love to sign you but I can’t say anything else until you are out of your contract.”
C. “I’d be happy to discuss this house with you but I cannot discuss anything else. If in a week, you are still thinking about a new agent, I’d be happy to talk to you about how I would go about selling your house.”
D. “I think you should list with me as soon as that week is up. I’m certain I could sell your house.”
89. When is a complaint passed to the Professional Standards Committee?
A. once it has been filed
B. once it has been reviewed by the Grievance committee
C. once it has been reviewed by the Ethics committee
D. once it has been reviewed by the Board of Directors
90. Broker Ken showed a property to buyer Lori. Lori subsequently meets broker Amy, whose son plays ball with Lori’s son. Broker Amy discovers that buyer Lori has looked at a property with Ken and tells Lori that she is also in the real estate business and can help her buy the property. The hearing panel will
A. not consider how and when Amy entered the transaction.
B. consider how and when Amy entered the transaction.
C. only consider who made the initial introduction to the property.
D. only consider who wrote the successful contract on the property.
91. Which of the following choices addresses standards designed around duties to the client, not the public?
A. not practicing law
B. providing the standard professional service expected
C. arbitrating disputes
D. putting contracts in writing
92. Seller Tim has offered an open listing on his property to a number of brokers in the area. REALTORS® Sherry and Vinod both show his property. Sherry produces an agreement of sale, which is acceptable to Tim who sells the property to Wanda. Subsequently, Vinod tells Tim that Wanda was his client and he is owed a commission. The best solution available to Tim is to
A. agree to be bound by arbitration and allow the local board of REALTORS® to arbitrate the matter.
B. pay both Sherry and Vinod a full commission.
C. demand that Sherry split the commission with Vinod.
D. litigate the matter with both REALTORS®.
93. REALTOR® Dee shows a property listed by REALTOR® Nelson. Subsequently, REALTOR® Nelson sells the property to the buyer that REALTOR® Dee introduced to the property. REALTOR® Dee files an arbitration request and is able to prove she is the procuring cause of the sale. REALTOR® Nelson owes REALTOR® Dee
A. the co-operating commission originally offered by Nelson.
B. the total commission paid to REALTOR® Nelson by the seller.
C. a 20% referral fee.
D. half of the commission REALTOR® Nelson actually received from the seller after he negotiated with the seller to reduce his commission.
10/22 – newly
94. REALTOR® Marcy listed Derek’s home, thus creating an agency relationship in which she owes fiduciary duties to Derek. Chad is a customer of Marcy’s. Which of the following duties does Marcy NOT owe to Chad?
A. accounting for any deposit monies she receives from him, which are put into a separate account
B. telling him the lowest price Derek will take for the house, which Derek told her in confidence
C. disclosing her relationship with Derek
D. notifying him of all known material facts
95. REALTOR Marcy listed Derek’s home, thus creating an agency relationship in which she owes fiduciary duties to Derek. Chad is a customer of Marcy’s. Which of the following duties does Marcy NOT owe to Chad?
A. accounting for any deposit monies she receives from him, which are put into a separate account
B. telling him the lowest price Derek will take for the house, which Derek told her in confidence
C. disclosing her relationship with Derek
D. notifying him of all known material facts
96. Broker Steve files an arbitration request against Broker Deb. Broker Deb admits that she extended an offer of cooperation and compensation to Broker Steve. This particular fact favors
A. Broker Deb.
B. neither broker.
C. both brokers.
D. Broker Steve.
97. Which of these items is a REALTOR® required to discover and disclose, according to Article 2 of the Code of Ethics?
A. Twenty years ago, a former occupant of the house committed suicide in the house.
B. All material facts known about the property from the seller, another agent, previous experience with the property, or researching public records.
C. The price that the sellers told the agent is their minimum selling price.
D. A foundation crack is hidden behind the paneling in the basement.
98. Which of these items is a REALTOR required to discover and disclose, according to Article 2 of the Code of Ethics?
A. Twenty years ago, a former occupant of the house committed suicide in the house.
B. All material facts known about the property from the seller, another agent, previous experience with the property, or researching public records.
C. The price that the sellers told the agent is their minimum selling price.
D. A foundation crack is hidden behind the paneling in the basement.
99. REALTOR Marty has a daughter who is interested in a property. Marty makes arrangements with the listing agent, REALTOR Caroline, to show the property. Marty later writes a contract and a sale is made. At the closing table, Marty tells Caroline and the seller that the buyer is actually his daughter. Did Marty violate the Code?
A. No, the fact that his daughter was the buyer is inconsequential to the transaction.
B. No, Marty’s daughter and the seller were in mutual agreement with the stipulations of the sale.
C. Yes, Marty should have disclosed his relationship with all parties involved when an offer was made.
D. Yes, Marty should not have said anything to the other REALTOR® and the seller at the closing.
100. REALTOR® Loretta has a large brokerage that includes an in-house mortgage lender, an in-house title company, and she offers home warranties through her company. Identify which statement is true.
A. Loretta may insist that all buyers and sellers use the auxiliary services provided by her company.
B. Loretta needs to say nothing about these businesses or services; it is obvious she owns them.
C. Loretta may not market these auxiliary services to buyers or sellers using her company.
D. Loretta must disclose her interest to her clients and customers, including any financial benefit received.
101. REALTOR Loretta has a large brokerage that includes an in-house mortgage lender, an in-house title company, and she offers home warranties through her company. Identify which statement is true.
A. Loretta may insist that all buyers and sellers use the auxiliary services provided by her company.
B. Loretta needs to say nothing about these businesses or services; it is obvious she owns them.
C. Loretta may not market these auxiliary services to buyers or sellers using her company.
D. Loretta must disclose her interest to her clients and customers, including any financial benefit received.
102. REALTOR® Antonio has a buyer agency contract, which entitles him to collect a fee. He sells Mary’s property and receives an additional fee for the sale. Did Antonio violate the Code?
A. Yes, Antonio only has a contract with the buyer; therefore, he is only permitted to collect a fee from the buyer.
B. No, because REALTORS® are entitled to collect some fees, which a non-member licensee is not.
C. No, Antonio is entitled to collect these fees as long as there was informed consent from both parties to the transaction.
D. Yes, because REALTORS® are prohibited from receiving compensation from more than one party.
103. REALTOR Antonio has a buyer agency contract, which entitles him to collect a fee. He sells Mary’s property and receives an additional fee for the sale. Did Antonio violate the Code?
A. Yes, Antonio only has a contract with the buyer; therefore, he is only permitted to collect a fee from the buyer.
B. No, because REALTORS® are entitled to collect some fees, which a non-member licensee is not.
C. No, Antonio is entitled to collect these fees as long as there was informed consent from both parties to the transaction.
D. Yes, because REALTORS® are prohibited from receiving compensation from more than one party.
104. Broker Joann, a buyer’s agent, is seeking arbitration against Broker Millie, a seller’s agent. Broker Millie presents as evidence the listing in the MLS with no compensation offered to a buyer’s agent, only offered to sub-agents. Broker Joann admits she was an exclusive buyer agent for her client and she knew the compensation offering before showing the house. This fact favors
A. Broker Joann.
B. Broker Millie.
C. neither broker.
D. both brokers.
105. REALTOR® Barbara holds an open house on a rainy day and discovers the seal for the back door is leaking. The seller didn’t mention this before the open house. What is Barbara’s duty?
A. order the seller to disclose the leak
B. maintain confidentiality since the seller didn’t mention the leak
C. avoid the subject of the back door and if it comes up, lie
D. urge the seller to update the disclosure form or have the back door repaired
106. REALTOR Barbara holds an open house on a rainy day and discovers the seal for the back door is leaking. The seller didn’t mention this before the open house. What is Barbara’s duty?
A. order the seller to disclose the leak
B. maintain confidentiality since the seller didn’t mention the leak
C. avoid the subject of the back door and if it comes up, lie
D. urge the seller to update the disclosure form or have the back door repaired
107. Seller George paid for a home inspection on his house for a prospective buyer. This is an example of
A. fiduciary duties.
B. disclosure of material facts.
C. arbitration.
D. honesty and integrity
108. REALTOR® Mike is showing a property to his client Jean. Jean asks Mike his opinion about the structure of the property. Mike’s answer should be
A. “The structure does not seem sound and I would not purchase this house.”
B. “The structure looks good. Nice and sturdy basement and everything appears dry.
C. “Providing an opinion about the structure is outside the scope of my expertise. I recommend if you are interested, you have the house inspected by a professional.”
D. “I will ask the selling REALTOR® her opinion and get back to you.”
109. REALTOR Mike is showing a property to his client Jean. Jean asks Mike his opinion about the structure of the property. Mike’s answer should be
A. “The structure does not seem sound and I would not purchase this house.”
B. “The structure looks good. Nice and sturdy basement and everything appears dry.
C. “Providing an opinion about the structure is outside the scope of my expertise. I recommend if you are interested, you have the house inspected by a professional.”
D. “I will ask the selling REALTOR® her opinion and get back to you.”
110. REALTOR® Bill is representing sellers Sue and Sam, who are divorcing. Seller Sue says to REALTOR® Bill one day, “I will get half the money when we sell this house, won’t I?” Which response is correct?
A. “Absolutely—this is a community property state.”
B. “Let’s not worry about that today—let’s wait until we sell your house, then we’ll figure it out.”
C. “You really need to consult with your attorney with questions of that nature.”
D. “I think you’ll get more than half with me as your REALTOR®.”
111. REALTOR Bill is representing sellers Sue and Sam, who are divorcing. Seller Sue says to REALTOR Bill one day, “I will get half the money when we sell this house, won’t I?” Which response is correct?
A. “Absolutely—this is a community property state.”
B. “Let’s not worry about that today—let’s wait until we sell your house, then we’ll figure it out.”
C. “You really need to consult with your attorney with questions of that nature.”
D. “I think you’ll get more than half with me as your REALTOR®.”
112. REALTOR® Antonio has been asked by a listing client to prepare an opinion of value on his property. Which of these items is NOT required to be provided with the opinion of value?
A. proof of clear title on the property
B. date the opinion of value was prepared
C. documentation of what the opinion is based on
D. statement that the opinion of value is not the same as an appraisal
113. REALTOR Antonio has been asked by a listing client to prepare an opinion of value on his property. Which of these items is NOT required to be provided with the opinion of value?
A. proof of clear title on the property
B. date the opinion of value was prepared
C. documentation of what the opinion is based on
D. statement that the opinion of value is not the same as an appraisal
114. At the request of a client, REALTOR® Marguerite provided a written estimated value of the client’s property. This is called a(n)
A. appraisal.
B. opinion of value.
C. estimated market evaluation.
D. comparative financial analysis.
115. At the request of a client, REALTOR Marguerite provided a written estimated value of the client’s property. This is called a(n)
A. appraisal.
B. opinion of value.
C. estimated market evaluation.
D. comparative financial analysis.
116. REALTOR® Crystal went door-to-door in a particular subdivision asking homeowners if they were interested in selling because the ethnic make-up of the neighborhood is changing. This is an example of
A. racial segregation.
B. property profiling.
C. panic selling.
D. targeted sales.
117. REALTOR Crystal went door-to-door in a particular subdivision asking homeowners if they were interested in selling because the ethnic make-up of the neighborhood is changing. This is an example of
A. racial segregation.
B. property profiling.
C. panic selling.
D. targeted sales.
118. REALTOR® Jeffrey is preparing a new advertisement for the Sunday paper that will have pictures of people enjoying the neighborhood community pool. He should
A. exclude any human models to avoid any kind of unnecessary bias.
B. include persons of only one race to show the demographics of that neighborhood.
C. not run the ad at all.
D. include persons of several races in order to avoid exclusivity in advertising.
119. REALTOR Jeffrey is preparing a new advertisement for the Sunday paper that will have pictures of people enjoying the neighborhood community pool. He should
A. exclude any human models to avoid any kind of unnecessary bias.
B. include persons of only one race to show the demographics of that neighborhood.
C. not run the ad at all.
D. include persons of several races in order to avoid exclusivity in advertising.
120. Which of these advertisements is an example of inducement?
A. Open house in a beautiful tree-lined neighborhood this Saturday! First twenty people through the door receive a gift card to Chipotle!”
B. “New builds going fast! Custom designers are available in person this Friday from noon until 4 PM!”
C. “Price reductions just made on this beautiful Victorian. Call REALTOR® Dan for a tour today!”
D. “Open house in a beautiful neighborhood this Saturday!”
121. Identify which of these is considered misconduct, according to the Code.
A. offering an inducement to get someone through the door
B. maintaining several websites aimed towards different sets of clients
C. purposefully leaving sold houses on a website to make your website look more robust
D. sending a mass mailing out to potential clients
122. Which of these statements could be considered discriminatory?
A. “A beautiful home on 1.5 acres with trees and a small pond”
B. “Exclusive neighborhood community with a Tier 1 golf club”
C. “Great location, four blocks away from the Park and Ride”
D. “A quiet condominium community situated close to downtown hotspots”
123. Which of these is an example of panic selling?
A. advertising a free gift to any client who attends an open house
B. homeowners selling at a below market value because the demographics of the neighborhood is changing
C. offering to reduce broker fees to a short sale
D. providing little to no information about known issues with a house
124. REALTORS® Jona and Wally are from different states where their boards do not have an established inter-association arbitration agreement. Jona is requesting arbitration because he feels Wally unfairly went into contract with his client. To settle this agreement, they can
A. find a third, impartial board to hold their hearing.
B. have an arbitration hearing at Wally’s association, if Jona agrees.
C. litigate any differences.
D. request arbitration services from the National Association of REALTORS® if both Jona and Wally agree.
125. REALTORS Jona and Wally are from different states where their boards do not have an established inter-association arbitration agreement. Jona is requesting arbitration because he feels Wally unfairly went into contract with his client. To settle this agreement, they can
A. find a third, impartial board to hold their hearing.
B. have an arbitration hearing at Wally’s association, if Jona agrees.
C. litigate any differences.
D. request arbitration services from the National Association of REALTORS® if both Jona and Wally agree.
126. Which of these actions violates the Code?
A. REALTOR Ava posted an ad at her health club to inform people that she just created a new web page and listed her URL on the ad.
B. REALTOR® Juan hosts several websites aimed toward different types of buyers.
C. REALTOR Lyla listed her client’s property for less than they had wanted to sell it for because she knew it had a better chance of selling at that price.
D. REALTOR® Robbie offers a free restaurant coupon to Flannigan’s to anyone that books a home tour with him between now and St. Patrick’s Day.
127. REALTOR® Nelson has an exclusive listing contract with seller Jennifer. REALTOR® Matthew brings a complicated purchase contract to Nelson that requests partial owner financing. Jennifer rejects the offer. Nelson informs Matthew of the rejection, and Matthew believes Jennifer did not understand the details of the contract. Matthew calls Jennifer to explain the details. This is
A. allowable because the offer had already been presented and Matthew is just adding information.
B. allowable because REALTOR® Nelson obviously doesn’t understand the offer.
C. a violation of the Code, despite the fact that REALTOR® Nelson did have permission from REALTOR® Matthew.
D. a violation of the Code; REALTOR® Matthew did not have permission from REALTOR® Nelson to contact Jennifer.
128. REALTOR Nelson has an exclusive listing contract with seller Jennifer. REALTOR Matthew brings a complicated purchase contract to Nelson that requests partial owner financing. Jennifer rejects the offer. Nelson informs Matthew of the rejection, and Matthew believes Jennifer did not understand the details of the contract. Matthew calls Jennifer to explain the details. This is
A. allowable because the offer had already been presented and Matthew is just adding information.
B. allowable because REALTOR® Nelson obviously doesn’t understand the offer.
C. a violation of the Code, despite the fact that REALTOR® Nelson did have permission from REALTOR® Matthew.
D. a violation of the Code; REALTOR® Matthew did not have permission from REALTOR® Nelson to contact Jennifer.
129. REALTOR® Donna has a property exclusively listed and shows it to buyer Dan, who wants to make an offer. She negotiates the offer with buyer Dan, who offered less than asking price. Donna, representing the seller, holds firm and gets Dan to buy at asking price. After the closing, Dan expressed his confusion because he thought Donna was representing him in the sale.
A. Donna has not violated any Article or Standard; she just did her job and sold the house.
B. Donna has violated the Code by not disclosing to the seller that she was representing buyer Dan.
C. Donna has violated the Code by not getting informed consent from both buyer and seller to be a dual agent.
D. Donna has violated the Code by not making it clear to buyer Dan that she was representing the seller.
130. REALTOR Donna has a property exclusively listed and shows it to buyer Dan, who wants to make an offer. She negotiates the offer with buyer Dan, who offered less than asking price. Donna, representing the seller, holds firm and gets Dan to buy at asking price. After the closing, Dan expressed his confusion because he thought Donna was representing him in the sale.
A. Donna has not violated any Article or Standard; she just did her job and sold the house.
B. Donna has violated the Code by not disclosing to the seller that she was representing buyer Dan.
C. Donna has violated the Code by not getting informed consent from both buyer and seller to be a dual agent.
D. Donna has violated the Code by not making it clear to buyer Dan that she was representing the seller.
131. REALTOR® Melanie has a listing, which REALTOR® Bill sells. After the closing, Melanie visits the buyers in their home and asks if they have any questions or need any information about the community. REALTOR® Bill finds out about the contact and accuses Melanie of trying to steal his client. Which of the following is correct?
A. Melanie can only talk to these buyers if they contact her.
B. Melanie can seek the prospect’s future business.
C. Melanie must confirm that the agency relationship between the buyers and REALTOR® Bill has terminated.
D. Melanie should not solicit a buyer agreement with these buyers.
132. REALTOR Melanie has a listing, which REALTOR Bill sells. After the closing, Melanie visits the buyers in their home and asks if they have any questions or need any information about the community. REALTOR Bill finds out about the contact and accuses Melanie of trying to steal his client. Which of the following is correct?
A. Melanie can only talk to these buyers if they contact her.
B. Melanie can seek the prospect’s future business.
C. Melanie must confirm that the agency relationship between the buyers and REALTOR® Bill has terminated.
D. Melanie should not solicit a buyer agreement with these buyers.
133. REALTOR® Patty has an appointment to show REALTOR® Katie’s listing. Patty prepares a CMA prior to the appointment, then shows the property to her prospect, buyer Larry. Before leaving, REALTOR® Patty takes the seller aside and tells her the property won’t sell because it is overpriced and shows the seller her comps. Did Patty’s actions violate the Code?
A. No, because her client, Larry, has no interest in the property.
B. No, because REALTOR® Katie is obviously clueless about how to price a property.
C. No, but only if she doesn’t solicit the listing at the same time.
D. Yes, because she does not have permission from REALTOR® Katie.
134. REALTOR Patty has an appointment to show REALTOR Katie’s listing. Patty prepares a CMA prior to the appointment, then shows the property to her prospect, buyer Larry. Before leaving, REALTOR Patty takes the seller aside and tells her the property won’t sell because it is overpriced and shows the seller her comps. Did Patty’s actions violate the Code?
A. No, because her client, Larry, has no interest in the property.
B. No, because REALTOR® Katie is obviously clueless about how to price a property.
C. No, but only if she doesn’t solicit the listing at the same time.
D. Yes, because she does not have permission from REALTOR® Katie.
135. While REALTOR® Mary is putting a sign on a property, a couple pulls up in a car and asks if they can see the property. It is Mary’s listing and she has the key; the sellers are not home but told her to show it anytime. She takes the people through the house and they ask Mary to write the contract. REALTOR® Mary’s next step should be to
A. ask the buyers if they are exclusively represented by another REALTOR®.
B. contact the sellers and write the contract.
C. prepare a CMA which demonstrates the accuracy of the price.
D. set up an appointment with the title company.
136. While REALTOR Mary is putting a sign on a property, a couple pulls up in a car and asks if they can see the property. It is Mary’s listing and she has the key; the sellers are not home but told her to show it anytime. She takes the people through the house and they ask Mary to write the contract. REALTOR Mary’s next step should be to
A. ask the buyers if they are exclusively represented by another REALTOR.
B. contact the sellers and write the contract.
C. prepare a CMA which demonstrates the accuracy of the price.
D. set up an appointment with the title company.
137. REALTOR® Howard has an exclusive representation agreement with a buyer. He shows and sells a listing held by REALTOR® Jane. At the closing table, Howard reveals to both REALTOR® Jane and the sellers that he has an exclusive buyer agency agreement with his client. This is
A. not timely disclosure per the requirements of the Code.
B. something that would be understood by both REALTORS® and does not need to be disclosed.
C. really none of REALTOR® Jane’s or her clients’ business.
D. what is required by the Code.
138. REALTOR Howard has an exclusive representation agreement with a buyer. He shows and sells a listing held by REALTOR Jane. At the closing table, Howard reveals to both REALTOR®Jane and the sellers that he has an exclusive buyer agency agreement with his client. This is
A. not timely disclosure per the requirements of the Code.
B. something that would be understood by both REALTORS and does not need to be disclosed.
C. really none of REALTOR® Jane’s or her clients’ business.
D. what is required by the Code.
139. REALTOR® Kara posts an ad claiming “the most you will be charged is a $5,000 commission. Compare our rates to others” This ad is
A. ethical.
B. unethical.
C. not a true picture.
D. false advertising.
140. REALTOR Kara posts an ad claiming “the most you will be charged is a $5,000 commission. Compare our rates to others” This ad is
A. ethical.
B. unethical.
C. not a true picture.
D. false advertising.
141. REALTOR® Jack notices the following comment posted under one of his listings on his website. “I recently toured this home with REALTOR® Jordan. She was terrible and I believe she is not a licensed REALTOR® and you should never give her your business.” Jack knows for a fact that Jordan is licensed. Jack should
A. keep the comment posted; it only helps his business and, after all, he didn’t write it.
B. respond to the author of the comment and request the author remove the comment.
C. remove the comment immediately.
D. use the comment in other places on his website to help drum up new business.
142. REALTOR Jack notices the following comment posted under one of his listings on his website. “I recently toured this home with REALTOR Jordan. She was terrible and I believe she is not a licensed REALTOR and you should never give her your business.” Jack knows for a fact that Jordan is licensed. Jack should
A. keep the comment posted; it only helps his business and, after all, he didn’t write it.
B. respond to the author of the comment and request the author remove the comment.
C. remove the comment immediately.
D. use the comment in other places on his website to help drum up new business.
143. REALTOR® Sam represents seller Linda. Buyer Holly contacts Sam indicating that she has seen the house Linda is selling and would like to make an offer. The first thing Sam should do is
A. find out if Holly is in an exclusive relationship with a REALTOR® and explain to Holly that Sam represents only Linda in this transaction
B. advise Holly that Linda will only take listing price; since he is Linda’s agent, he has the right to do so.
C. draw up the paperwork on Holly’s offer.
D. contact Linda to let her know there is an offer.
144. REALTOR Sam represents seller Linda. Buyer Holly contacts Sam indicating that she has seen the house Linda is selling and would like to make an offer. The first thing Sam should do is
A. find out if Holly is in an exclusive relationship with a REALTOR and explain to Holly that Sam represents only Linda in this transaction
B. advise Holly that Linda will only take listing price; since he is Linda’s agent, he has the right to do so.
C. draw up the paperwork on Holly’s offer.
D. contact Linda to let her know there is an offer.
145. If two licensees, who are not REALTORS®, have a monetary dispute, they
A. may ask the local Association of REALTORS® to provide them with a free mediator.
B. may ask the local Association of REALTORS® to arbitrate it.
C. are not allowed to litigate the matter.
D. do not have the option of arbitration through the local Association of REALTORS®.
146. If two licensees, who are not REALTORS, have a monetary dispute, they
A. may ask the local Association of REALTORS to provide them with a free mediator.
B. may ask the local Association of REALTORS to arbitrate it.
C. are not allowed to litigate the matter.
D. do not have the option of arbitration through the local Association of REALTORS.
147. REALTOR® Eddie believes that REALTOR® Sacha sold his client a house. After the closing, Eddie calls Sacha to discuss the matter. Eddie suggests taking the matter to arbitration. Sacha does not want arbitration, and both agree to get lawyers and sue one another. Eddie and Sacha
A. will have years of arbitration ahead of them.
B. are going to need to put this decision in writing to the Board of REALTORS©.
C. made a great decision. This way is more efficient.
D. are not allowed to sue each other because they are both REALTORS©.
148. REALTOR Eddie believes that REALTOR Sacha sold his client a house. After the closing, Eddie calls Sacha to discuss the matter. Eddie suggests taking the matter to arbitration. Sacha does not want arbitration, and both agree to get lawyers and sue one another. Eddie and Sacha
A. will have years of arbitration ahead of them.
B. are going to need to put this decision in writing to the Board of REALTORS.
C. made a great decision. This way is more efficient.
D. are not allowed to sue each other because they are both REALTORS.
149. Which of these statements is an ethical practice by a REALTOR®?
A REALTOR® may tell prospective clients not to list with REALTORS® offering flat-rate commissions.
A. A REALTOR® can recommend another REALTOR® to a client who mentioned she is relocating out of state.
B. A REALTOR ® can use guided statements to diminish another REALTOR’s® integrity.
C. A REALTOR® accepts an undisclosed fee from a buyer while serving as a listing agent for the seller.
150. Which of these statements is an ethical practice by a REALTOR?
A. A REALTOR may tell prospective clients not to list with REALTORS offering flat-rate commissions.
B. A REALTOR can recommend another REALTOR to a client who mentioned she is relocating out of state.
C. A REALTOR can use guided statements to diminish another REALTOR’s integrity.
D. A REALTOR accepts an undisclosed fee from a buyer while serving as a listing agent for the seller.
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