CCS Sales Practices & Ethical Standards 2

Question 1

A condominium sales agent learns that a unit has a history of water intrusion that was repaired. What is the agent's ethical obligation regarding this information?

Accepted Answer

Disclose the material fact proactively to all prospective buyers

Answer

Agents must proactively disclose known material facts, including past defects, even if repaired, because they can affect a buyer's decision.

Question 2

Which practice is considered a violation of ethical sales standards when marketing a condominium unit?

Accepted Answer

Advertising a lower price than the listed price to attract calls

Answer

Advertising a price lower than the listed price to generate leads is bait-and-switch advertising, which is an unethical and often illegal practice.

Question 3

A buyer's agent receives an offer from a client on a condo unit. The listing agent is the agent's personal friend. What should the buyer's agent do?

Accepted Answer

Disclose the relationship to the buyer and represent them with full loyalty

Answer

The buyer's agent must disclose the personal relationship to the client and continue to represent the buyer's best interests with full fiduciary duty.

Question 4

Under CCS standards, what must an agent do when a seller instructs them NOT to disclose that the condo association is involved in litigation?

Accepted Answer

Refuse the instruction and disclose the litigation as a material fact

Answer

Pending association litigation is a material fact that agents are legally and ethically required to disclose regardless of seller instructions.

Question 5

What is the primary purpose of the RESPA (Real Estate Settlement Procedures Act) as it applies to condominium sales?

Accepted Answer

To prohibit kickbacks and referral fees in settlement services

Answer

RESPA prohibits kickbacks and unearned fees between settlement service providers to protect buyers from inflated closing costs.

(CCS) Certified Condominium Specialist Practice Test

(CCS) Certified Condominium Specialist Practice Test

CCS Sales Practices & Ethical Standards 2