NAR Professional Ethics & Compliance 2

Question 1

Under the Code of Ethics, which Article obligates REALTORS® to preserve confidential information obtained from clients, even after the relationship ends?

Accepted Answer

Article 1 via Standard of Practice 1-9

Answer

Standard of Practice 1-9 under Article 1 requires REALTORS® to preserve confidential information obtained during the agency relationship even after it has ended.

Question 2

A REALTOR® discovers a client is engaging in a transaction that is legal but appears to involve mortgage fraud. What is the correct course of action?

Accepted Answer

Withdraw from the transaction and report to appropriate authorities if required by law

Answer

REALTORS® must not facilitate illegal activities and should withdraw from transactions involving fraud, reporting to authorities when legally required.

Question 3

Which of the following best describes the 'arbitration' process available through NAR's dispute resolution system?

Accepted Answer

A binding process to resolve commission disputes between REALTORS®

Answer

NAR arbitration is a binding process used to resolve monetary disputes, typically involving commission disagreements, between REALTORS®.

Question 4

Article 4 of the Code of Ethics requires that when a REALTOR® purchases property for personal use, they must:

Accepted Answer

Disclose their REALTOR® status and any personal interest in writing

Answer

Article 4 mandates that REALTORS® disclose in writing their status as a real estate professional and any personal interest when buying, selling, or renting their own property.

Question 5

A buyer's agent receives an offer of compensation from the listing broker that differs from what was offered in the MLS. Under the Code of Ethics, what must the buyer's agent do?

Accepted Answer

Promptly disclose the discrepancy to their client and broker

Answer

REALTORS® must disclose compensation differences to their client and broker to ensure transparency and avoid conflicts of interest.

(NAR) National Association of Realtors Certification Practice Test

(NAR) National Association of Realtors Certification Practice Test

NAR Professional Ethics & Compliance 2