Test your knowledge of the NAR Code of Ethics.
1. The Code of Ethics is based on the concept:
a. Let the buyer beware
b. Let the seller beware
c. Let the public be served
d. Let the public be dammed, how do I get paid?
2. The Code of Ethics was adopted:
a. To establish standards of conduct for the indistry
b. Only as “recommendations” for proper conduct
c. In 1930 after the stock market crash
d. Both a and c
e. Both b and c (Don’t you hate these choices)
3. The Preamble to the Code:
a. Sets out aspirational ideals that Realtors should strive to attain
b. Can be used as a basis for disciplinary action against a Realtor
c. Requires Realtors to meet the standards set forth in the Preamble
d. Was written by the first president of NAR on a restaurant napkin
4. The Code is primarily enforced through:
a. NAR
b. State associations of Realtors
c. Local associations of Realtors
d. None of the above
e. All of the above
f. Strong armed thugs
5. The 2 basic types of complaints that are handled by local associations are:
a. Ethics complaint & license law complaints
b. License law complaints & mediation complaints
c. Ethics complaints & requsts for arbitration
d. License law complaints & requests for arbitration
e. Commission complaints & consumer complaints
f. Complaints about demanding sellers and fussy buyers
6. The 3 committees or groups that are involved in the Code enforcement process are:
a. Grievance Committee, Appeals Committee, & Board of Directors
b. Professioanl Standards Committee, Arbitration Committee, & Mediation Committee
c. Professional Standards Committtee, Mediation Committee, & Board of Directors
d. Grievance Committee, Professional Standards Committee & Board of Directors
e. Dance Committee, Yearbook Committee, & Bored of Committees Committee
7. A request for arbitration is most commonly based on a dispute about:
a. A listing commission
b. A cooperative (selling) commission
c. An earnest money dispute
d. A claim for damages
e. A blogger saying mean things about a Realtor
8. A request for mandatory arbitration is based on:
a. A monetary dispute between Realtors (principals) in different firms
b. A legal claim for damages between Realtors in different firms
c. A monetary dispute between a Realtor and Realtor.com
d. A legal claim for damages between a salesperson and his/her broker
e. Anything to get the other party to offer a settlement
9. The concept of procuring cause is used to decide commission disputes in arbitration cases. Which of the following statements is true about the concept of procuring cause?
a. No predeterminmed rules of entitlement are allowed to be used by a hearing panel
b. A hearing panel should not consider the entire course of conduct in the transaction & should decide the case on that one factor
c. Whether an agent abandoned or estranged a buyer is not an important factor in determining which party will receive an award
d. Generally, a hearing panel should split the award rather than award it all to one party
e. In cases involving procuring cause, a coin toss is a tool in deciding the outcome
10. Realtors have an obligation to protect and promote the best interests of their client but also have an obligation to treat all parties: (is this not a trick question)
a. Fairly
b. Honestly
c. Fairly and honestly
d. As interlopers
e. None of the above
11. If a listing broker tells another broker, “I’ll cooperate with you”, the other broker:
a. May assume the listing broker will pay a cooperative commission
b. May not assume the listing broker will pay a cooperative commission
c. Has an arbitration claim against the broker if the listing broker fails to pay a cooperative commission
d. Has a legal claim against the listing broker for the cooperative commission if the listing broker refuses to pay a cooperative commission
e. Both a and c
f. Both a & d
g. Will go “halfees” on munchies for the Open House
12. A cooperating broker in a transaction that resulted in a sale may:
a. Claim to have “sold” the property
b. Post a “sold” sign on the property after closing (w/buyer permission)
c. Not claim to have “sold” the property but may state they “participated” or “assisted” in the transaction
d. Both a & b
13. Disciplinary action in an ethics complaint may NOT include:
a. A fine not to exceed $5000
b. A letter of reprimand
c. A requirement that the respondent attend a course of education
d. An written apology
The answers will be posted on Friday along with the author of the quiz. The quiz answers were slightly modified to try to keep readers awake. Answers here.
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Just when I think I’ve read the code enough for a while, you come up with something like this! Not wanting to be embarrassed, I’ll read it through again before I try to answer this quiz.
Thanks again for thought-provoking commentary on our business.
Wait you can’t do that! I will the piece of paper… I scrawled my answers on…
Thanks Jim. Hope you pass
Maureen, I hope I can find the answers I jotted on my napkin during dinner.
I meant to say “Lose the piece of paper….”
Great quiz… I will know from now on a Sellsius quiz to skip to the end to see if my required instant gratification is there!
I thought this was a great quiz! And like Maureen, I wrote my answers down as I read each question, and now have to hope I can hang on to this piece of paper for a week!!!
Great post!
Maureen, for instant gratification take the brand name quiz (related posts link) where the answers are listed in the comment section.
Thanks Ann. One more day. A shameless way to get you all to come back Friday
I “jotted mine down” in a place where I can’t lose them. We should make a mantra for the new year, and our New Year’s Resolution, “No Bits of Paper Ever Again!”
Seriously, no blogger should have “bits of paper” in their toolbox.
True, so true, Ardell. But those old school habits die hard.
As a member of my states pro standard committee I’ll take the chance and post my answers and risk ridicule. Here goes…
1 c
2 a
3 c
4 a
5 c
6 d
7 b
8 a
9 b
10 b
11 e
12 b
13 d
I’ll also state that the annually required course and exam to remain on the pro standards committee is by far the most difficult compared to anything else I’ve been involved with in this biz. The licensing exam was nothing, my GRI courses were open book, and continuing education courses are a joke. You have to earn your way on the pro standards committee in my state.
Now that’s guts Todd. (Ardell, never one to shrink from a challenge, posted her answers on her blog.) We’ll post the answers tomorrow, along with any explanation, as well as name the author of the quiz so that he can take the heat for the disagreements
Great quiz,
Just a couple of thoughts, after 20yrs in the biz, most realtors read and use this about as many times as they read the Declaration of Independence.
Oh, and enforcement, thanks for the laugh, there’s a better chance of seeing the 55mph speed limit enforced before the code of ethics.
This is the most abused & most ingnored document on the planet earth.
OK, Todd. It’s you and me kid. I agreed with 8 of your answers, and I’m not a Realtor
Realtor Code of Ethics? I bought a home from a realtor who blatantly lied on his own property disclosure. Then he quit the agency (HER) and moved to Palm Springs. Bang, off the hook and I’m stuck resolving the problem$.
I cringe just looking at the title of this post.
We hear you Dave. There are plenty of bad seeds in every profession. Your Realtor, if you ever find him or her, ought to be sued.
Hope you can resolve the problems soon. Is there anything we can do to help? email me at jf (at) sellsisurealestate.com
Thanks Sellsius,
Ever since I sold and bought a home recently, I’ve become a fan of your site, very cool media outlet for you guys.
I’m not a whiner, I had the BEST realtor to help us find a new home and sell ours. The problems couldn’t have been anticipated and I hold no grudge against my realtor at all, but the seller/realtor was an ass.
The total remedies resulting from the inaccurate disclosure are about 30K (and many days lost at work having the work done) and we suspect would not be worth the stress of a legal battle. Also, this anger we’ve accumulated is toxic. We need to suck it up and move on. It’s just sad.
In a recent communication, I summarized the problem and cited the
specific reason his disclosure was dihonest; it’s pretty obvious he
pulled a quick one. He never refuted it; just cowered in silence. I think he’s waiting for a lawyer letter. It’ll never happen, but it’s fun to leave him dangling a while.