Sales and Business Ethics Flashcards

A prospect signs a lease and later claims they were not informed about a mandatory pet fee. The leasing professional says they did disclose it verbally. What best practice would have prevented this dispute?

Answer: Having the prospect initial or sign a written disclosure of all fees before or at lease signing

Written fee disclosures initialed by the applicant create a documented record that prevents disputes about what was or was not communicated.

A leasing professional is also the listing agent for a resident looking to sell their condo in a different building. This situation is an example of:

Answer: A dual role conflict of interest that must be disclosed to both parties

Serving two clients in related transactions creates a conflict of interest that requires full disclosure to both parties.

During a tour, a prospect asks if the community has had any recent break-ins. The leasing professional should:

Answer: Provide whatever crime data the property has and direct them to local police department public records

Honest disclosure of available information and directing prospects to public records demonstrates integrity and protects against misrepresentation claims.

The 'AIDA' model used in leasing sales stands for:

Answer: Attention, Interest, Desire, Action

AIDA—Attention, Interest, Desire, Action—describes the stages a prospect moves through from first contact to signing a lease.

A leasing professional is offered a commission by a moving company to recommend their services to new residents. This arrangement is ethical only if:

Answer: It is fully disclosed to management and residents are not misled about the recommendation

Third-party referral commissions create a conflict of interest and must be disclosed to management and transparently communicated to residents.

A prospect with a felony conviction on their background check applies for an apartment. Best practice under current HUD guidance recommends the property should:

Answer: Conduct an individualized assessment considering the nature, severity, and time elapsed since the offense

HUD guidance discourages blanket criminal history bans in favor of individualized assessments that consider recency and relevance to tenancy.

When a leasing professional promises a prospect that an amenity will be completed by move-in but is uncertain of the timeline, this statement could constitute:

Answer: A misrepresentation that could void the lease or expose the property to liability

Making specific promises about amenity completion timelines that are not confirmed as factual can constitute misrepresentation and creates legal risk.