NAR Client Representation & Customer Service 3

Question 1

A seller asks their listing agent to reject all offers from buyers of a specific national origin. The agent must:

Accepted Answer

Refuse and explain this violates Fair Housing laws and the Code of Ethics

Answer

National origin is a protected class under Fair Housing; an agent who complies with discriminatory instructions violates federal law and NAR ethics.

Question 2

The duty of 'accounting' in a fiduciary relationship requires a real estate agent to:

Accepted Answer

Keep records of all funds and property entrusted to them and report accurately

Answer

Accounting means the agent must safeguard and accurately report all money and property received on behalf of the client.

Question 3

When a buyer's agent learns of a competing offer on a property their client wants, the agent's best course of action is to:

Accepted Answer

Inform the buyer client promptly so they can make a competitive decision

Answer

Promptly informing the buyer client of competing interest enables them to exercise their best judgment, fulfilling the agent's duty of disclosure.

Question 4

A seller's listing agreement has expired. The listing agent continues to show the property and accepts a verbal renewal. This practice is:

Accepted Answer

Problematic because listing agreements must be in writing to be enforceable in most states

Answer

Real estate listing agreements must be in writing to be legally enforceable in virtually all U.S. jurisdictions.

Question 5

Under designated agency, the designated agent owes fiduciary duties to:

Accepted Answer

Only the client to whom they have been specifically designated

Answer

Designated agency allows one agent within a firm to represent the buyer and another the seller, with each agent owing full fiduciary duties only to their designated client.

(NAR) National Association of Realtors Certification Practice Test

(NAR) National Association of Realtors Certification Practice Test

NAR Client Representation & Customer Service 3