NAR Real Estate Law & Ethics 2

Question 1

Under the NAR Code of Ethics, Article 1, a REALTOR® representing a buyer must:

Accepted Answer

Protect and promote the interests of their client while treating all parties honestly

Answer

Article 1 requires REALTORS® to protect and promote the interests of their client while treating all parties honestly.

Question 2

A property owner tells their listing agent not to show the home to buyers of a particular national origin. The agent should:

Accepted Answer

Withdraw from the listing if the seller won't remove the restriction

Answer

REALTORS® must not discriminate and must withdraw from any listing that requires violation of fair housing laws.

Question 3

Which document grants an agent the legal authority to represent a buyer in a transaction?

Accepted Answer

A buyer representation agreement signed by both parties

Answer

A signed buyer representation agreement is the legally recognized document establishing agency authority for buyer representation.

Question 4

The ethical duty of 'confidentiality' under the NAR Code requires a REALTOR® to:

Accepted Answer

Keep client information confidential even after the agency relationship ends

Answer

Confidentiality survives the termination of the agency relationship and is a continuing duty under the Code of Ethics.

Question 5

Under RESPA, a real estate broker who owns a title company and refers clients to it must:

Accepted Answer

Disclose the affiliated business arrangement and provide an estimate of charges

Answer

RESPA requires disclosure of affiliated business arrangements (AfBA) and an estimate of charges before referral.

(NAR) National Association of Realtors Certification Practice Test