NAR Professional Ethics & Compliance 3

Question 1

A REALTOR® is asked to provide a comparative market analysis (CMA) for a fee. Which Article governs how this analysis must be presented?

Accepted Answer

Article 11 — competence and scope of practice

Answer

Article 11 requires REALTORS® to perform services only within their area of competence and to disclose when a service falls outside their expertise.

Question 2

Under the Code of Ethics, a REALTOR® acting as a dual agent must:

Accepted Answer

Obtain informed written consent from all parties before proceeding

Answer

The Code of Ethics requires REALTORS® to obtain informed written consent from all parties before proceeding with dual or limited agency representation.

Question 3

Which Standard of Practice under Article 12 specifically addresses the use of 'sold' designations in advertising?

Accepted Answer

SOP 12-4

Answer

SOP 12-4 prohibits REALTORS® from advertising properties listed or sold by others without obtaining the listing broker's permission.

Question 4

A REALTOR® receives an earnest money deposit from a buyer. Under Article 8, these funds must be:

Accepted Answer

Held in a separate escrow or trust account as required by state law

Answer

Article 8 requires that client funds be held in escrow or trust accounts separate from the REALTOR®'s personal or business accounts.

Question 5

If a REALTOR® is found in violation of the Code of Ethics, which of the following is NOT a sanction available to the hearing panel?

Accepted Answer

Criminal prosecution referral by the panel

Answer

NAR ethics panels can impose sanctions like warnings, fines, suspension, or mandatory education, but criminal prosecution is handled by law enforcement, not the panel.

(NAR) National Association of Realtors Certification Practice Test

(NAR) National Association of Realtors Certification Practice Test

NAR Professional Ethics & Compliance 3