Code of Ethics

### Why is a Code of Ethics important in real estate? - [x] It ensures trust and public confidence in real estate practices. - [ ] It allows agents to bypass legal requirements. - [ ] It complicates real estate transactions. - [ ] It limits the ability of agents to negotiate. > **Explanation:** A Code of Ethics ensures trust and public confidence in real estate practices, which promotes professionalism and integrity in the industry. ### What is one major principle covered by the Code of Ethics? - [ ] Encouraging quick sales without verification - [x] Full disclosure of material facts - [ ] Concealing known property issues - [ ] Prioritizing personal gain over client interests > **Explanation:** One of the major principles covered by the Code of Ethics is the full disclosure of material facts impacting the property. ### Which body typically enforces the Code of Ethics in the United States? - [ ] State Governments - [ ] Local Chambers of Commerce - [x] National Association of Realtors (NAR) - [ ] Private Brokerage Firms > **Explanation:** The National Association of Realtors (NAR) typically enforces the Code of Ethics in the United States. ### What type of information are real estate agents required to keep private? - [ ] Market trends - [x] Client financial information - [ ] Listing prices of other agents - [ ] Public records data > **Explanation:** Real estate agents are required to keep their client's financial information and other private details confidential. ### What is NOT a consequence of violating the Code of Ethics? - [ ] Fines - [ ] Mandatory education - [ ] License suspension - [x] Automatic property foreclosure > **Explanation:** Violating the Code of Ethics does not result in automatic property foreclosure but can lead to fines, mandatory education, or license suspension. ### Must a non-member agent of NAR follow their Code of Ethics? - [ ] Yes, absolutely required by law. - [ ] No, never necessary. - [x] Yes, if they are performing duties in a state that mandates it. - [ ] No, only local rules apply. > **Explanation:** Although not absolute by law for non-members, in states where the NAR Code of Ethics is mandated, following it becomes necessary. ### What does "confidentiality" mean in real estate ethics? - [x] Keeping client information private - [ ] Revealing all client conversations to the public - [ ] Disclosing personal details of agents to clients - [ ] Sharing all transactional records preemptively > **Explanation:** "Confidentiality" means keeping client information private, ensuring their financial and personal details are not disclosed improperly. ### What action demonstrates an ethical violation? - [ ] Accurate listing information - [x] False advertising practices - [ ] Detailed property descriptions - [ ] Providing client references > **Explanation:** False advertising practices are an ethical violation according to the Code of Ethics. ### Which type of obligation is not generally addressed by a Code of Ethics? - [ ] Obligation to clients - [ ] Obligation to other professionals - [x] Obligation to provide personal loans - [ ] Obligation to the public > **Explanation:** Providing personal loans is not typically addressed or required by a Code of Ethics in real estate. ### For whom is adherence to the Code of Ethics a condition of membership? - [ ] All landlords - [x] NAR members - [ ] All home buyers - [ ] City councils > **Explanation:** Adherence to the Code of Ethics is a condition of membership for all National Association of Realtors (NAR) members.