Wisconsin Real Estate License Ethics & Professional Practices 1

Question 1

What is the primary responsibility of a real estate agent under ethical guidelines?

Accepted Answer

Act in the best interest of clients

Answer

Maximize commission earnings

Answer

Only follow client instructions without guidance

Answer

Disclose client information freely

Question 2

What does the term 'fiduciary duty' mean in real estate?

Accepted Answer

Obligation to act in a client’s best interest

Answer

A requirement to disclose all offers

Answer

A contract to set commission rates

Answer

An agreement to guarantee a sale

Question 3

Which practice is considered unethical in real estate?

Accepted Answer

Steering clients based on race or ethnicity

Answer

Providing a comparative market analysis

Answer

Explaining financing options

Answer

Negotiating in good faith

Question 4

What must an agent do when they have a conflict of interest in a transaction?

Accepted Answer

Disclose the conflict to all parties

Answer

Ignore the conflict and proceed

Answer

Avoid working with certain clients

Answer

Only inform their brokerage

Question 5

What is the purpose of the Code of Ethics established by the National Association of Realtors (NAR)?

Accepted Answer

Promote fairness and integrity in real estate

Answer

Determine commission rates for agents

Answer

Allow agents to ignore legal regulations

Answer

Only apply to commercial real estate

Question 6

Why is accurate property disclosure important in real estate transactions?

Accepted Answer

Ensure transparency and prevent legal disputes

Answer

Help the seller get a higher price

Answer

Reduce the agent’s responsibilities

Answer

Allow for negotiation flexibility