Sales Practices & Ethical Standards Flashcards
7 cards from real CCS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Sales Practices & Ethical Standards flashcards as text
A condominium listing agent receives two offers simultaneously—one from a buyer they are also representing and one from an unrelated buyer. What is the most ethical course of action?
Answer: Present both offers simultaneously to the seller and fully disclose the dual agency
The agent must present all offers to the seller and fully disclose the dual agency situation, allowing the seller to make an informed decision.
What is 'blockbusting' as it relates to real estate ethics?
Answer: Inducing panic selling by suggesting that people of a certain group are moving into a neighborhood
Blockbusting is the illegal practice of inducing homeowners to sell by exploiting fears about demographic changes in a neighborhood.
A CCS agent is aware that a competing agent has submitted a fraudulent comparative market analysis to inflate a listing price. The most appropriate action is to:
Answer: Report the conduct to the state real estate commission or professional association
Agents have a professional obligation to report known unethical or illegal conduct by other licensees to the appropriate regulatory or professional body.
When is a condominium agent permitted to represent that a unit will appreciate in value?
Answer: Never, because guaranteeing appreciation is always misrepresentation
No agent can guarantee future property appreciation; representing that a unit will appreciate in value constitutes misrepresentation regardless of market conditions.
An agent lists a condominium but fails to mention in the MLS that the building has a special assessment of $15,000 per unit coming due next year. This omission is best classified as:
Answer: Negligent misrepresentation by omission of a material fact
A known upcoming special assessment is a material fact that must be disclosed; omitting it constitutes negligent or fraudulent misrepresentation.
Under the NAR Code of Ethics, REALTORS® are obligated to treat all parties in a transaction with:
Answer: Honesty but reserve undivided loyalty for the client only
REALTORS® owe honesty to all parties but reserve their fiduciary duties—loyalty, confidentiality, disclosure, obedience, and care—exclusively for their client.
A buyer's agent learns that their client is willing to pay up to $350,000 for a condo listed at $320,000. Sharing this information with the listing agent without the buyer's consent would be a violation of:
Answer: The agent's fiduciary duty of confidentiality to the buyer
Disclosing a buyer's maximum price to the listing agent without consent breaches the agent's fiduciary duty of confidentiality owed to the buyer.