Professional Standards and Ethics Flashcards

An agent asks the TC to sign the client's name on an addendum because the client is traveling. What should the TC do?

Answer: Decline and arrange for the client to sign electronically or through a valid power of attorney

Signing for someone without legal authority is forgery, so proper e-signature or a valid POA is required.

Which advertisement statement by a TC would be misleading?

Answer: Guaranteed on-time closings or your money back, regardless of lender delays

Guaranteeing outcomes outside the TC's control is misleading marketing.

An agent asks the TC to tell the buyer the property has no HOA when the TC knows it does. What is the TC's obligation?

Answer: Refuse to make a false statement and raise the concern with the agent or broker

TCs must not participate in misrepresentation, even at an agent's request.

Why should a TC have a written services agreement with the agents they support?

Answer: It defines scope, fees, responsibilities, and limits, reducing disputes and liability

A clear written agreement sets expectations and protects both parties.

A TC wants to be paid directly from the closing statement. What must typically occur?

Answer: The fee should be properly disclosed and comply with state license law and broker rules

Compensation paid at closing must be disclosed and lawful, and some states restrict paying unlicensed persons from commissions.

An unlicensed TC is asked to host an open house alone and answer buyers' questions about price. What is the issue?

Answer: Discussing price and terms with prospects is licensed activity in most states

Providing property and price information to prospects in a sales capacity usually requires a license.

Which best describes ethical communication by a TC with all transaction parties?

Answer: Be timely, accurate, and professional, while respecting confidentiality

Professional communication is prompt, truthful, and mindful of what may be shared.