CRECI Industry Standards & Ethical Practices 3

Question 1

The NAR Code of Ethics Article 1 obligation for REALTORS® in commercial practice primarily requires:

Accepted Answer

Protecting and promoting clients' interests while treating all parties honestly

Answer

Article 1 mandates that REALTORS® protect and promote their client's interests while simultaneously treating all parties to the transaction honestly.

Question 2

Under CRECI standards, a commercial broker who learns of environmental contamination on a listed property must:

Accepted Answer

Disclose to prospective buyers regardless of seller instructions

Answer

Environmental contamination is a material fact that must be disclosed to prospective buyers even without seller authorization, as concealment could constitute fraud.

Question 3

A commercial real estate professional who knowingly submits a false comparative market analysis to support an inflated listing price is violating the ethical principle of:

Accepted Answer

Honesty and integrity

Answer

Submitting a knowingly false CMA violates the core ethical principle of honesty and integrity, which requires truthful communication in all professional dealings.

Question 4

Steering a commercial tenant toward or away from specific building types based on the tenant's national origin is:

Accepted Answer

A violation of the Fair Housing Act and professional ethics

Answer

While the Fair Housing Act has limited commercial application, steering based on protected characteristics violates anti-discrimination laws and CRECI ethical standards.

Question 5

The ethical duty of 'obedience' in a commercial agency relationship requires the agent to:

Accepted Answer

Follow lawful client instructions even if personally disagreeable

Answer

The duty of obedience requires following the client's lawful instructions; an agent is not required to follow illegal or unethical directives.

(CRECI) Commercial Real Estate Certification Institute Practice Test

(CRECI) Commercial Real Estate Certification Institute Practice Test

CRECI Industry Standards & Ethical Practices 3