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Post-License Ch.16 Summary Notes
Professional conduct excludes disparagement of competitors.
Forgo pursuit of unfair advantage.
Arbitrate rather than litigate disputes.
Respect the agency relationships of others.
The Fair Housing Act prohibits activities such as:
· Discriminatory misrepresentation
Providing unequal services
Steering – channeling customers toward or away from homes and neighborhoods.
Blockbusting – inducing owners to sell or rent to avoid an impending change in the ethnic or social makeup of the neighborhood that will cause values to go down.
·Restricting MLS participation
Redlining – refusing to make loans on properties in a certain neighborhood regardless of a mortgagor’s qualifications.
The Fair Housing Act allows for exemptions:
A building with no more than four units and the owner is living in one of the units.
A single-family home.
Jones v. Mayer: prohibits racial discrimination in any real estate transaction.
Brokers are required to display the Equal Housing Opportunity Poster.
Examples of potential client discrimination are:
Refusing a full-price offer from a party.
Removing the property from the market to sidestep a potential purchase by a party.
Accepting an offer from one party that is lower than one from another party.
Complaints alleging fair housing violations must be filed with the Office of Fair Housing and Equal Opportunity within one year of the violation.
A party may file suit in state or federal court within two years of the alleged violation.
A violator who exhibits discriminatory patterns or who intentionally or manifestly violates equal opportunity rights is subject to criminal prosecution.
The Equal Credit Opportunity Act requires lenders to be fair and impartial in determining who qualifies for a loan.
Home Mortgage Disclosure Act is designed to prohibit redlining.
A professional real estate agent must understand the skills and knowledge the profession requires.
Real estate laws.
Evolving standards of practice.
Most codes of ethics uphold the commitment to fulfill fiduciary duties.
Honestly representing market value and property condition.
Respecting rights and duties of other client-agent relationships.
Submitting all offers.
Licensees should be careful to disclose:
That the agent is going to receive compensation from more than one party in a transaction.
Property defects if they are reasonably apparent.
Any profits made on a client’s money.
The agent’s identity in advertisements.
A trade association is a voluntary nonprofit organization of independent and competing business units and formed to resolve the industry’s problems.
A real estate association/board is a voluntary organization whose members are engaged in some phase of the real estate business.
The National Association of Realtors unites and unifies the organized real estate interests of the Nation and presents a common cause and program regarding national issues affecting real property.
The Multiple Listing Service (MLS) accumulates and disseminates information to enable authorized participants to prepare valuations of real property.
NAREB’s membership is comprised primarily of African-American real estate brokers. Members are known as Realtists.
In any instance where the Code of Ethics and the law conflict, the obligations of the law must take precedence. The Grievance Committee has only one purpose: to review the complaint and make a determination that “if the facts as presented are true, there would be a legitimate complaint.”
A professional standards hearing is conducted by a panel of Realtor members of the local or state organization.
An arbitration complaint is also filed with the association for review by the Grievance Committee. The determination of procuring cause is not dependent on ethical behavior.
Regulatory standards apply to all licensees within a state:
Article 1 – Protecting the best interests of the client
Article 2 – Disclosure of pertinent facts
Article 9 – Get it in writing
Article 12 – Truth in Advertising
Article 16 – Respecting another agency relationship
When faced with making an ethical decision:
Determine the exact nature of the problem and the parties involved.
Concentrate on the pertinent facts of the case.
Check for laws or regulations that may affect the decision.
Specify who stands to gain and who stands to lose by the decision.
Explore various solutions to the problem.
Make a decision that can be supported comfortably.